One Time Settlement (OTS) in India: Meaning, Process & Eligibility Explained

One Time Settlement (OTS) is a debt relief option where a borrower negotiates with the lender to close a loan by paying a reduced lump-sum amount instead of the full outstanding balance. It is commonly used when a borrower faces financial hardship and cannot continue regular EMI payments. Platforms like FREED help negotiate such settlements and may reduce total dues significantly through structured programs.