The One Time Settlement (OTS) process, step by step
A calm, plain-language walkthrough of how farmers move from a stressed agricultural loan to a settled, closed account — and how we support you at every stage.
Your settlement journey
Every case is different, but the path to a One Time Settlement usually follows five clear stages. Knowing what comes next removes fear and helps you act with confidence.
- 1
Assess your loan account
The journey begins with a clear picture of where your loan stands. We help you read your statements and understand the numbers before you approach the bank.
- Total outstanding — principal, interest, and penalties
- Current account classification (regular, stressed, or NPA)
- Any recovery or demand notices already received
- 2
Check eligibility for OTS
One Time Settlement is considered case by case and the decision rests with the bank. Genuine hardship strengthens a case. We assess whether OTS is a realistic route for you.
- Nature of hardship — crop failure, price collapse, illness, calamity
- How far recovery action has progressed
- Whether restructuring may be a better fit than OTS
- 3
Prepare your settlement proposal
A well-documented, honest proposal consistently produces better outcomes than avoidance. We help you organise the paperwork and frame a clear request.
- Loan documents, statements, and proof of hardship
- A realistic lump-sum figure you can arrange
- A clear, respectful written proposal to the bank
- 4
Submit and negotiate with the bank
Your proposal is submitted through the correct channel and followed up. Terms, the reduced amount, and approval are decided solely by the bank.
- Formal submission to the appropriate authority
- Responding to queries and clarifications
- Understanding the bank's counter-terms in plain language
- 5
Arrange payment and close the account
Once the bank approves the settlement, the agreed lump sum is paid within the sanctioned timeline and the account is formally closed.
- Pay the agreed amount within the approval window
- Obtain the settlement / No Dues certificate
- Confirm the account is marked closed in bank records
Ready to take the first step?
Share your situation with our advisors. We'll review your account and explain the options available for your case — with no pressure.
Frequently asked questions
Need help with your agricultural loan?
Speak with our experts and understand the options available for your situation.