One Time Settlement Agreement
When borrowers struggle with overdue debt and lenders seek a practical recovery solution, a One Time Settlement (OTS) Agreement becomes the perfect middle ground. An OTS allows the borrower to settle outstanding dues by paying a mutually agreed amount—often lower than the total liability—while the lender avoids long recovery battles. At Aarthika Globcorp, we help individuals, MSMEs, and companies negotiate and draft clear, compliant, and dispute-free OTS Agreements that protect both parties and ensure smooth financial closure. With proper structuring and legal safeguards, OTS becomes a powerful tool to rebuild creditworthiness and restore financial stability.
Documents Required
- Original loan agreement & sanction letter
- Outstanding loan statements
- Proposed settlement amount & repayment plan
- Identity and financial documents of borrower
- Correspondence with lender
- Collateral/security documents (if applicable)
FAQs
Yes, the lender may waive interest, penalties, or partial principal, depending on negotiation.
Borrowers facing genuine financial difficulty, NPAs, or overdue accounts where regular repayment is not possible.
The lender may release collateral after the settlement amount is fully paid.
Settlement amount, payment timeline, waiver terms, release of security, legal closure, consequences of default, and final discharge.
Yes. OTS approval is at the discretion of the lender based on eligibility and financial assessment.