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One Time Settlement With Lenders
OTS involves compromise settlement of non-performing loans (NPLs) between a bank and its borrowers as per the board-approved policy of the former. This settlement entails the lender/ creditor taking a hair-cut on the outstanding loan amount.
KEY BENEFITS
While a one-time loan settlement can offer immediate respite from short-term financial difficulties, it can also pose a major problem for any credit you may seek in the future.
A one-time loan settlement will significantly reduce your financial burden for the foreseeable future. However, once the paperwork is done, the settlement will be reported by your lender to the credit bureau, and your account status will be ‘settled’. This essentially means that you have only partly repaid your loan, which is sufficient to damage your credit score. In case you apply for another loan or credit card in the future, there’s a good chance your application will be rejected
HOW IS OTS CALCULATED
The OPS can be calculated as follows: The net reach is the number of persons reached once. The gross reach is the number of persons reached regardless of the number of times the ad has been shown. The OTS value is obtained by dividing the gross reach by the net reach.