Non-performing assets (NPAs) have been one of the biggest challenges for both banks and borrowers in India. For banks NPA means blocked capital and financial stress, while for the borrower, it means debt pressure, Limited chances of getting new credit. To provide the leave there is a fresh start from Union Bank of India has launched a one-time settlement scheme for NPA 2025. Sam Aarambh Scheme 2025 started as a one-time settlement scheme that allows eligible borrowers to close their overdue loan amount by paying a negotiated amount. Instead of waiting for a lengthy Legal procedure, borrower now get a fresh chance to clear their dues and start over.
In this blog we will discuss about union Bank of India OTS scheme, its objectives eligibility features and document required.
What is SAM Aarambh OTS Scheme 2025
The Sam Aarambh is a one-time settlement scheme introduced by Union Bank of India for borrowers who are unable to pay the full loan amount due to financial difficulties. Instead of dragging cases to recovery Tribunals or auctions, the bank negotiates a settlement amount which is usually less than the total outstanding. Once the borrower pays this amount, the loan amount is considered settled or closed.
Primary objectives of one time settlement scheme for npa 2025
- This scheme is designed specially to clean up the balance sheet of a bank.
- To provide some relief and a fair chance to close the account.
- To minimize lengthy Court battles and recovery expenses.
- To motivate borrowers to settle accounts responsibly.
- Also helpful to support MSMEs, small Enterprises to recover from the depths and start afresh.
Key Features of Union Bank OTS Scheme 2025
- This is applicable for the loan accounts that are classified as non-performing assets.
- The borrower can settle their Loan by paying a negotiable amount.
- A one-time payment or a structured settlement option may be available.
- Benefits of Union Bank one time settlement scheme for NPA 2025
- Many brothers face genuine financial hurdles, like Business losses, medical emergencies, etc.
- The OTS scheme is helpful to close their Loan at a reduced cost.
- Instead of waiting for legal litigation, borrowers can resolve their accounts in a short time.
- After settlement for work and work on improving the CIBIL score, which is important for future credit.
- An entrepreneur can settle old loans and restart business operations.
- This scheme minimized the stress of avoiding recovery tribunals, auctions, and legal disputes.
Latest understand with an example
Suppose a borrower owes over 10 lakh to Union Bank of India, but due to financial hardship ship the loan becomes an NPA. Under the OTS scheme, the bank may agree to settle 6.5 within a specific time. By doing this,
- The borrower saves rs 3.5 lakh close the account.
- The bank recover 6.5 lakh quickly without going to a long legal battle.
Who is eligible?
Not all the borrowers can apply for one time settlement scheme there are some eligibility departments that include:
- Candidate must be your borrowed with alone at mouth classified as non performing asset (NPA).
- Fraudulent cases are not eligible.
- Cases with series criminal proceeding may not be qualify.
- Borrower must agree to settlement decided by bank.
Important Documents
- Aadhar card
- PAN card
- Loan account details
- Income proof
- Financial hardship proof
- Settlement application
- Passport size photograph
How to apply for Sam Aarambh Scheme 2025 (step by step process)
Applying under Union Bank one time settlement scheme for NPA 2025 is a straight forward and online process:
- First of all, visit the nearest branch of Union Bank of India where your loan account exists.
- Inform the branch manager or credit officer that you want to apply under the Sam Aarambh one-time settlement scheme.
- Submit your application form with the required documents.
- Now the bank will evaluate your account and calculate the settlement amount.
- You may negotiate within the guidelines. Once both sides agree, a settlement letter will be issued.
- After the payment, your loan account will be marked as closed or settled you will get an official no dues certificate.
Frequently Asked Questions (FAQs)
Q1. What is the Union Bank OTS Scheme 2025?
It is a One Time Settlement Scheme for NPA 2025 that allows borrowers to close overdue loan accounts by paying a negotiated amount.
Q2. Who is eligible for the SAM-AARAMBH scheme?
Borrowers with NPA accounts (except fraud or criminal cases).
Q3. Do I need collateral for settlement?
No. The settlement is based on negotiation and agreement, not new collateral.
Q4. Will my loan be written off?
No, it is not a waiver. You must pay the agreed settlement amount to close the account.
Q5. How will it affect my credit score?
Initially, the account will be marked as “Settled”, but later you can rebuild your score with responsible credit behavior.
Q6. Where can I apply for the Union Bank OTS Scheme 2025?
At your nearest Union Bank of India branch.
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