
One Time Settlement for MSME Loans: A Strategic Path to Financial Recovery and Business Stability | |
For many MSMEs (Micro, Small, and Medium Enterprises), loan defaults or cash flow challenges can disrupt operations and strain relationships with lenders. The One Time Settlement (OTS) scheme for MSME loans offers a practical and legally recognized way to resolve outstanding debts, regain financial stability, and restart business operations without prolonged litigation. An OTS for MSME loans allows borrowers to negotiate with banks or financial institutions to pay a mutually agreed lump-sum amount less than the total outstanding balance—to close their loan account. This approach not only reduces the financial burden but also helps in avoiding lengthy Debt Recovery Tribunal (DRT) proceedings or recovery actions under the SARFAESI Act. Professional OTS consultants for MSMEs assist entrepreneurs in preparing settlement proposals, assessing repayment capacity, and communicating effectively with lenders to achieve favorable terms. They also help in documenting the agreement legally to prevent future disputes. The scheme is particularly beneficial for MSMEs affected by market slowdowns, delayed payments, or post-pandemic financial distress. It provides a structured exit route that preserves the borrower’s creditworthiness while allowing the business to rebuild. For more information visit us at:- https://hectogonllp.com/services/dispute-resolution-consultants/ Call us:- +91 99907 25969 | |
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| Target State: Punjab Target City : Vasant Vihar Last Update : 10 November 2025 7:00 PM Number of Views: 21 | Item Owner : Hectogon Financial Solutions LLP Contact Email: Contact Phone: +91 99907 25969 |
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