Kaagazaat

One-Time Settlement (OTS) Proposal

At a glance

Price
₹99 · GST included

₹99

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • OTS proposal
  • OTS request letter
  • compromise settlement proposal
  • full and final settlement offer to bank
  • settlement request letter
  • one-time settlement application
  • ek-musht samadhan proposal

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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Why you need it

When you need it

For when you're behind on a loan or credit card, can't clear the full dues, and want to offer the lender a lump sum (or short series of payments) to close the account — for a bank, HFC or NBFC facility in your own name. Two warnings first. Limitation: if your last payment or written acknowledgement was over three years ago, stop — signing this can revive a dead claim, and 'without prejudice' doesn't reliably prevent that; get a lawyer to check the dates. Credit record: an accepted OTS reports as 'settled', not 'closed' — worse than a late-payment history, staying on record for years (bureaus set their own retention; no RBI rule fixes one). Use an OTS only when you genuinely can't pay in full — ask for restructuring, a moratorium or a lower EMI first, and try to get the lender to agree in writing to re-report as 'closed' if you later pay the waived amount (paragraph 10 asks for this). Get the sanction letter to state, before you pay: the exact settlement amount and payment dates, a No Dues Certificate and release of security/documents/every registered charge, discharge of any guarantor, withdrawal of recovery proceedings, and the exact bureau-reporting wording. If there's no response, escalate in writing: the branch/recovery office, then the lender's Principal Nodal Officer (bank/NBFC) or Grievance Redressal Officer (HFC), then — for a bank or covered NBFC — the RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2026 (in force 1 July 2026, replacing the 2021 scheme; file free at cms.rbi.org.in or call 14448, after a 30-day wait and an unsatisfactory or no reply, within 90 days). Housing finance companies are excluded from that Scheme — their route is the Grievance Redressal Officer, then the National Housing Bank (paragraph 12 picks the right one). Neither forum can force acceptance, but both can act on a lender that never replied or reported wrongly. Keep proof of delivery — a receiving stamp, registered post with acknowledgement, or email. Not covered: a company/LLP/partnership borrower, a deceased borrower's account settled by heirs, an insolvency-moratorium account, a guarantor settling alone, or a restructuring request instead. If fraud-classified or a named wilful defaulter, see a lawyer first.

See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

None — a proposal creates/transfers/extinguishes no right, so nothing in Schedule I or State Stamp Acts charges it; plain A4 paper. Article 1's nominal debt-acknowledgement duty doesn't apply (paragraph 7 is a promise to pay, which Article 1 excludes); not an agreement (no Article 5) or witnessed (not a 'bond', s.2(5)). What comes later — a settlement deed, or a mortgage reconveyance/release — is chargeable at the State's rate.

Registration

Not possible — the Registration Act, 1908 doesn't reach a proposal letter. Relevant only after payment: the mortgage discharge may need registering; a CERSAI/ROC charge needs separate satisfaction.

Notarisation

Not required — adds cost and can look like a formal admission. Some lenders separately want a notarised affidavit of assets/means — a different document; give it only if asked, and read before swearing.

Witnesses

None — staying unattested keeps it from being a 'bond' (s.2(5)), avoiding bond duty. What matters: proof of delivery — a receiving stamp, registered-post acknowledgement, or delivery report.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

WITHOUT PREJUDICE

Date: 7 April 2026
Place: Pune

FROM
Rahul Deshmukh
X
Mobile: X
Email: X
PAN: ABCDE1234F

TO
The Branch Manager
State Bank of India
Kothrud Branch, Pune
X
Email: X

SUBJECT: LOAN ACCOUNT NO. X - Home Loan in the name of Rahul Deshmukh - PROPOSAL FOR ONE-TIME SETTLEMENT

Sir / Madam,

  1. I am the borrower in the Home Loan account bearing account number X, serviced through your Kothrud Branch, Pune office. The account is held jointly with X as co-borrower. In this letter, "the Lender" means State Bank of India. I write to place before the Lender a proposal for a one-time settlement of this account, and I request that it be put before the authority competent to decide it under the Lender's board-approved settlement policy, framed in terms of the Reserve Bank of India (Framework for Compromise Settlements and Technical Write-offs) Directions, 2023 dated 8 June 2023, or the equivalent policy applicable to the Lender.
  1. Particulars of the account.

Borrower: Rahul Deshmukh
Co-borrower: X
Guarantor: X
Facility: Home Loan
Loan account number: X
Date of sanction: 1 April 2026
Amount sanctioned: ₹25,000 (Rupees Twenty Five Thousand only)
Total repaid by me to date: ₹25,000 (Rupees Twenty Five Thousand only)
Dues as on 2 April 2026, as per the Lender's records:
Principal outstanding: ₹25,000 (Rupees Twenty Five Thousand only)
Interest outstanding: ₹25,000 (Rupees Twenty Five Thousand only)
Other charges: ₹25,000 (Rupees Twenty Five Thousand only)
Total claimed: ₹25,000 (Rupees Twenty Five Thousand only)
Security held by the Lender: Equitable mortgage by deposit of title deeds of Flat No. 402, Shreeram Residency, Survey No. 118, Kothrud, Pune 411038. The Lender holds the original registered sale deed dated 12 March 2018, the index II and the original share certificate.

  1. Repayment record and default. I serviced this account until 3 April 2026, when I missed the first instalment. I understand the account was classified as a Non-Performing Asset on 4 April 2026. The recovery steps taken by the Lender so far, as known to me, are these: A demand notice under section 13(2) of the SARFAESI Act, 2002 dated 4 January 2025 for Rs. 41,80,000, and a possession notice under section 13(4) affixed on the property on 19 May 2025. I have also received a notice dated 2 February 2025 under section 138 of the Negotiable Instruments Act, 1881 in respect of a cheque of Rs. 34,000. Pending consideration of this proposal, I request that no further step be taken in those proceedings. I also request that I be informed of the last date on which I may redeem the security under section 13(8) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, where that Act applies to the steps taken. I do not dispute that the account is in default. What I am not in a position to do is pay the full amount claimed.
  1. Why the default occurred. In short: loss of employment when my employer shut its Pune unit in March 2024.

I worked as a production supervisor with Vinayak Auto Components Pvt. Ltd. for nine years. The Pune unit shut on 28 February 2024 and my employment ended on 15 March 2024. I received one month's salary in lieu of notice and nothing else.

I serviced the EMI from savings for four months and then could not. I have taken contract work since August 2024 but it pays about 40 per cent of my earlier salary and is not regular. I sold my wife's jewellery in November 2024 and paid Rs. 1,20,000 into the account. I have not been able to pay since.

  1. My present position.

My present income is about Rs. 22,000 a month from contract work, with no fixed salary. My wife earns about Rs. 9,000 a month from tuition. We support two school-going children and my mother, who needs regular medication.

My other obligations are a two-wheeler loan with an EMI of Rs. 2,800 (eleven instalments left, current) and a credit card outstanding of about Rs. 48,000. Apart from the mortgaged flat, I own no immovable property. I have no fixed deposits, no investments in shares or mutual funds, and my provident fund balance is about Rs. 1,60,000.

Questions about this document

What does the One-Time Settlement (OTS) Proposal cost on Kaagazaat?

₹99, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

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