One Time Settlement (OTS) Schemes
- Loans under Loss and Written off categories without any asset back up :
EXISTING | PROPOSED | ||||||
Sl. No. | Category of Loan | Settlement Amount | Delegated Authority | Category of Loan | Settlement Amount | Delegated Authority | Remarks |
1. | All loans under Loss and Written off categories without any asset back up as on 31.3.2013 | 10% of principal outstanding or 5% of principal disbursed whichever is higher plus 10% of other dues | Branch Settlement Committee (BSC) | All loans under Loss and Written off categories without any asset back up as on 31.3.2014 |
No change (10% of principal outstanding or 5% of principal disbursed whichever is higher plus 10% of other dues) |
No change (BSC) |
Cut off date moved to latest Balance Sheet date i.e. 31.3.2014 |
- Loans disbursed up to Rs.10.00 lakhs:
EXISTING | PROPOSED | ||||||
Sl. No. | Category of Loan | Settlement Amount | Delegated Authority | Category of Loan | Settlement Amount | Delegated Authority | Remarks |
2. |
All loans disbursed up to Rs.1.00 lakh with asset back up (with primary / collateral security available in the form of land / building / machinery) and in the categories of Doubtful and below as on 31.3.2013 including written off |
1.10 times the principal disbursed reduced by remittances or 5% of the principal disbursed whichever is higher plus 25% of other dues |
BSC |
All loans disbursed up to Rs.1.00 lakh with asset back up (with primary / collateral security available in the form of land / building / machinery) and in the categories of Doubtful and below as on 31.3.2014 including written off |
No change (1.10 times the principal disbursed reduced by remittances or 5% of the principal disbursed whichever is higher plus 25% of other dues) |
No change (BSC) |
Cut off date moved to latest Balance Sheet date i.e. 31.3.2014 |
EXISTING | PROPOSED | ||||||
Sl. No. | Category of Loan | Settlement Amount |
Delegated Authority |
Category of Loan |
Settlement Amount |
Delegated Authority |
Remarks |
3. |
All loans disbursed above Rs.1.00 lakh and up to Rs.5.00 lakhs with asset back up (with primary / collateral security available in the form of land / building / machinery) including all transport loans under TAHDCO Scheme and semi automatic looms in the categories of Doubtful and below as on 31.3.2013 including written off |
1.10 times the principal disbursed reduced by remittances made so far or 10% of the principal disbursed whichever is higher plus 25% of other dues |
BSC |
All loans disbursed above Rs.1.00 lakh and up to Rs.5.00 lakhs with asset back up (with primary / collateral security available in the form of land / building / machinery) including all transport loans under TAHDCO Scheme and semi automatic looms in the categories of Doubtful and below as on 31.3.2014 including written off |
No change (1.10 times the principal disbursed reduced by remittances made so far or 10% of the principal disbursed whichever is higher plus 25% of other dues) |
No change (BSC) |
Cut off date moved to latest Balance Sheet date i.e. 31.3.2014 |
4. | Loans disbursed above Rs.5.00 lakhs and up to Rs.10.00 lakhs with asset back up and security in the form of machinery / vehicle only (without any security available in the form of land / building) and in the category of Doubtful asset and below as on 31.3.2013 including written off. |
1.10 times the principal disbursed reduced by remittances made so far or 10% of the principal disbursed whichever is higher plus 25% of other dues |
BSC |
Loans disbursed above Rs.5.00 lakhs and up to Rs.10.00 lakhs with asset back up and security in the form of machinery / vehicle only (without any security available in the form of land / building) and in the category of Doubtful asset and below as on 31.3.2014 including written off. | No change (1.10 times the principal disbursed reduced by remittances made so far or 10% of the principal disbursed whichever is higher plus 25% of other dues) |
No change (BSC) |
Cut off date moved to latest Balance Sheet date i.e. 31.3.2014 |
EXISTING | PROPOSED | ||||||
Sl. No. | Category of Loan | Settlement Amount | Delegated Authority | Category of Loan | Settlement Amount | Delegated Authority | Remarks |
5 |
Loans disbursed above Rs.5.00 lakh and up to Rs.10.00 lakhs with asset back up (with primary / collateral security available in the form of land / building / machinery) including all transport loans under TAHDCO Scheme and semi automatic looms
a) Loans sanctioned prior to 1.4.2000 |
1.25 times the principal disbursed reduced by remittances made so far or 25% of the principal disbursed whichever is higher plus 25% of other dues |
BSC |
Loans disbursed above Rs.5.00 lakh and up to Rs.10.00 lakhs with asset back up (with primary / collateral security available in the form of land / building / machinery) including all transport loans under TAHDCO Scheme and semi automatic looms and in the category of Doubtful asset and below as on 31.03.2014 including written off. |
No change
(1.25 times the principal disbursed reduced by remittances made so far or 25% of the principal disbursed whichever is higher plus 25% of other dues) |
No change (BSC) |
Cut off date is fixed as 31/03/2014
Distinction made between sanctions prior to 1.4.2004 and after instead of 1.4.2000 |
a) Loans sanctioned prior to 1.4.2004 |
EXISTING | PROPOSED | ||||||
Sl. No. | Category of Loan | Settlement Amount |
Delegated Authority |
Category of Loan |
Settlement Amount |
Delegated Authority |
Remarks |
b) Loans sanctioned after 1.4.2000 and in the categories of Doubtful and below as on 31.3.2013 including written off |
Waiver of penal & | RSC |
b) Loans sanctioned after 1.4.2004 and in the categories of Doubtful and below as on 31.3.2014 including written off |
Waiver of penal |
No change (RSC) |
Cut off date moved to latest Balance Sheet date i.e. 31.3.2014.
Distinction made between sanctions prior to 1.4.2004 and after instead of 1.4.2000.
RV is arrived based on the number of times an asset is brought for auction |
|
compound interest | & compound | ||||||
(or) OTS amount to | interest (or) | ||||||
cover an IRR of | OTS amount to | ||||||
12% (or) realizable | cover an IRR of | ||||||
value whichever is | 12% (or) | ||||||
lower | Realizable | ||||||
Value* | |||||||
whichever is | |||||||
lower |
* Realizable Value (RV)
For assets not brought for auction sale by the Corporation – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 2 times – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 3 times – 90% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 4 times & above – 75% of present RV falling under the purview of valuation within ONE year
3. Loans disbursed above Rs.10.00 lakhs:
EXISTING | PROPOSED | ||||||
Sl. No. | Category of Loan | Settlement Amount |
Competent Authority for Approval |
Category of Loan | Settlement Amount | Competent Authority for Approval | Remarks |
6. | a) All units | Waiver of penal & |
a) All units including Short Term Loans sanctioned prior to 1.4.2004 and in the category of Doubtful asset and below as on 31.03.2014 including written off.
b) All units including Short Term Loans sanctioned after 1.4.2004 and in the category of Doubtful asset and below as on 31.03.2014 including written off. |
Waiver of |
Cut off date is fixed as 31/03/2014
Distinction made between sanctions prior to 1.4.2004 and after instead of 1.4.2000.
RV is arrived based on the number of times an asset is brought for auction |
||
including Short | compound interest | penal & | No change | ||||
Term Loans sanctioned prior |
(or) OTS amount to cover an IRR of |
compound interest (or) |
(DRC) |
||||
to 1.4.2000 | 12% (or) realizable | OTS amount | |||||
value whichever is | DRC | to cover an | |||||
lower | IRR of 12% | ||||||
(or) Realizable | |||||||
Value* | |||||||
whichever is | |||||||
lower | |||||||
b) All units including Short Term Loans sanctioned after to 1.4.2000 |
Waiver of penal interest (or) OTS amount to cover an IRR of 15% (or) realizable value whichever is lower |
Waiver of penal interest (or) OTS amount to cover an IRR of 15% (or) Realizable Value* whichever is lower |
No change (DRC) |
* Realizable Value (RV)
For assets not brought for auction sale by the Corporation – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 2 times – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 3 times – 90% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 4 times & above – 75% of present RV falling under the purview of valuation within ONE year
4. One Time Settlement Scheme for Hire Purchase:
EXISTING | PROPOSED | ||||||
Sl. No. | Category of the Unit | Settlement Amount | Competent Authority for Approval | Category of the Unit | Settlement Amount | Competent Authority for Approval | Remarks |
7. | All Units |
Waiver of penal |
DRC |
All units in the category of Doubtful asset and below as on 31.03.2014 including written off. |
(Waiver of |
No change |
Cut off date is fixed as 31/03/2014 |
& compound interest (or) OTS |
penal & compound |
(DRC) | |||||
amount to cover | interest (or) | RV is arrived | |||||
an IRR of 12% | OTS amount | based on the | |||||
(or) realizable | to cover an | number of times | |||||
value whichever | IRR of 12% | an asset is | |||||
is lower | (or) Realizable | brought for | |||||
Value* | auction | ||||||
whichever is | |||||||
lower) |
* Realizable Value (RV)
For assets not brought for auction sale by the Corporation – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 2 times – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 3 times – 90% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 4 times & above – 75% of present RV falling under the purview of valuation within ONE year
5. One Time Settlement Scheme for Lease Finance:
EXISTING | PROPOSED | ||||||
Sl. No. | Category of the Unit | Settlement Amount | Competent Authority for Approval | Category of the Unit | Settlement Amount | Competent Authority for Approval | Remarks |
8. | All units |
Waiver of penal |
DRC |
All units in the category of Doubtful asset and below as on 31.03.2014 including written off. |
Waiver of |
No change |
Cut off date is fixed as 31/03/2014 |
& compound interest (or) |
penal & compound |
(DRC) |
RV is arrived |
||||
OTS amount to | interest (or) | based on the | |||||
cover an IRR of | OTS amount | number of times | |||||
12% (or) | to cover an | an asset is | |||||
realizable value | IRR of 12% | brought for | |||||
whichever is | (or) Realizable | auction | |||||
lower | Value* | ||||||
whichever is | |||||||
lower |
* Realizable Value (RV)
For assets not brought for auction sale by the Corporation – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 2 times – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 3 times – 90% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 4 times & above – 75% of present RV falling under the purview of valuation within ONE year
06. for Soft Loan / Seed Capital:
EXISTING | PROPOSED | ||||
Sl. No. |
Seed Capital / Soft Loan |
Settlement Amount |
Seed Capital / Soft Loan |
Settlement Amount |
Remarks |
9. | For all seed capital / soft loan cases | Settlement amount will be arrived both for term loan and soft loan together based on the realizable value of securities, IRR, Etc. |
For all seed capital / soft loan cases and in the category of Doubtful asset and below as on 31.03.2014 including written off. |
Settlement amount will be arrived both for term loan and soft loan together based on the Realizable Value* of securities, IRR, Etc. |
Cut off date is fixed as 31/03/2014
RV is arrived based on the number of times an asset is brought for auction |
* Realizable Value (RV)
For assets not brought for auction sale by the Corporation – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 2 times – 100% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 3 times – 90% of present RV falling under the purview of valuation within ONE year
For assets auctioned up to 4 times & above – 75% of present RV falling under the purview of valuation within ONE year
Note:
- In respect of loans sanctioned above10 lakhs and sanctioned after 1.4.2002
- There shall not be reversal of interest earned / credited to the loan
- Waiver shall not exceed the interest outstanding and shall result in collection of the entire principal disbursed and simple interest together with otherdues except the cases where the realizable value is very
- In respect of cases which are classified as wilful defaulters as per RBI guidelines the competent authority for approval will be as under
- Loans upto 5.00 lakhs – RSC
- Loans above Rs.5.00 lakhs and
upto Rs.10.00 lakhs – DRC
- Loans above 10.00 lakhs – Board
- In respect of GES cases covered by Credit Guarantee, where claim has been settled by CGTMSE, OTS settlements will be informed and remitted to CGTMSE
- The above settlement schemes do not apply to sanctions under BFS
- The modified OTS scheme indicated above will not be applicable to those borrowers where an OTS has already been granted earlier unless the approval has since been withdrawn / legal action
- The decision of TIIC regarding eligibility, interpretation of the OTS policy and offering OTS to individual units shall be final and binding upon the borrower and without prejudice to the rights and remedies available to TIIC relating to recovery, which shall be invariably mentioned in all communications related to OTS
- As per circulars TIIC/HO/REC/(5b)/2013-14, 10/01/2014 and TIIC/HO/REC/AG/2013-14, dt.14.3.2014, the appropriate authority shall fix the OTS amount taking into account the OTS offers received earlier, etc.,
- Even though OTS approval is valid only for one year, condonation of delay in settlement can be considered as indicated in circular.