In the Instant Case borrower, a lady enterpreneur has availed CC limit for her trading business for Rs.25.00 Lacs from SBI and given a collateral security, a residentail house in which she resides with her spouse, children and old grand laws.
The account has become NPA in Nov. 2011. A 13(4) notice has already been issued in the matter. According to the bank, they have already taken all the necessary permission for local authorities including DM & police for taking physical possession of the house.
Though the borrower is making payment on regular basis, but the same is not enough to liquidate the loan. The principal outstanding as per bank is Rs.23..35 Lacs and total outstanding is Rs.30.00 lacs.
The query is how can the borrower apply for one time settlement of the account. At what amount bank will normally accept as OTS. Does the bank take in to consideration the value of Mortgaged property while negotiating for OTS.
What time the bank may allow if bank agrees for OTS to liquidate the OTS amount.