One Time Settlement is the most common way to close a stressed KCC account. This guide covers how OTS applies specifically to Kisan Credit Card loans.
OTS for a KCC account
In a KCC OTS, the bank agrees to accept a single reduced payment to fully close the account. The relief usually comes from waived interest and penalties rather than the core drawn amount.
OTS applies to accounts already classified as NPA, so knowing your account status is the starting point.
Preparing a KCC OTS proposal
Submit a written proposal with the amount you can pay and the hardship behind it — crop loss, price collapse, or calamity. Arrange funds in advance so you can pay within the deadline if approved.
Frequently asked questions
Who decides the KCC OTS amount?
The bank, based on its policy and any security. You can propose a figure, but the final amount is the bank's decision.
Does a KCC OTS affect my credit record?
Yes. The account is typically reported as 'settled', which lenders view differently from a fully repaid account.
Related guides
KCC Loan Settlement: The Complete Guide
KCC RestructuringKCC Loan Restructuring: A Practical Guide
KCC NPAKCC NPA and Default: What It Means and What to Do
KCC RecoveryKCC Recovery Notices and SARFAESI: Your Rights
KCC RenewalKCC Renewal Issues and How to Fix Them
KCC Interest WaiverKCC Interest Subvention and Waivers Explained