An OTS closes the bank file but reports your account as 'Settled' to credit bureaus, blocking future loans for up to 7 years. Learn how to convert a settled account to 'Closed'.
The Post-Settlement Upgrade Path
Once your financial circumstances stabilize, you can approach the bank to pay the previously waived interest and principal balance. Upon full payment, the bank issues a final NOC and updates CIBIL to 'Closed'.