Odisha is witnessing rapid economic growth, from the IT hubs of Bhubaneswar to the industrial belts of Angul and Jharsuguda. However, financial instability can strike anyone. Whether it is a business affected by cyclones, a personal medical emergency, or job loss, debt can pile up quickly.
If you are dealing with aggressive recovery agents or the fear of a legal notice in Cuttack or Puri, you need to know your rights. Using the **Odisha Money Lenders Act** and other legal provisions, you can protect yourself from exploitation. **Loan Settlement** is a dignified, legal way to exit the debt trap without filing for bankruptcy.
AMA Legal Solutions is here to stand by you. We deal with banks daily, understanding their internal policies to negotiate a settlement that you can actually afford, ensuring you can live debt-free in Odisha.
"Loan settlement, or One Time Settlement (OTS), is a legal agreement where the bank agrees to accept a reduced payment—often significantly lower than the total dues—to close a loan account permanently."
This is not charity; it is a business decision for banks to clear their books of Non-Performing Assets (NPAs). If you have a genuine valid reason for default, banks are willing to negotiate.
For instance, if you have a credit card debt of ₹3 Lakhs that has ballooned to ₹6 Lakhs due to interest, we can step in. We can negotiate to waive the inflated interest and penalties, potentially settling the account for ₹2-3 Lakhs.
The state of Odisha has robust laws to protect residents from predatory lending and harassment.
This Act is a shield against unfair practices. Key benefits include:
The **Commissionerates of Bhubaneswar and Cuttack** have taken a strong stance against extortion by recovery agents. The **Odisha Protection of Interests of Depositors Act** also reflects the state's intent to curb financial fraud, creating a legal environment that favors fair treatment of the common man.
The **Odisha State Legal Services Authority (OSLSA)** organizes Lok Adalats that have proven incredibly successful for bank recovery cases.
In 2025 alone, district-level Lok Adalats in Odisha disposed of over 1.9 lakh cases with settlements worth ₹130.8 Crore. A single event in Khordha district saw ₹23 Crore realized. This shows that banks in Odisha are actively looking to settle.
Our team can represent you in these Lok Adalats to ensure your voice is heard and you get a settlement that respects your financial constraints.
We bring professional legal defense to your doorstep in Odisha.
We utilize the Anti-Extortion helpline and Cuttack-Bhubaneswar police resources to stop harassment immediately.
We understand the specific operations of Odisha's banks and the legal tendencies of OSLSA Lok Adalats.
Our clients in Odisha have saved lakhs on interest waivers through our expert negotiation strategies.
We have a structured approach to help you clear your debts in Odisha.
We analyze your financial health and loan details. We check if your loan is secured or unsecured and identify the best settlement scheme available under RBI guidelines.
We officially intimate the bank that AMA Legal Solutions represents you. This legal buffer helps stop the daily harassment calls and forces the bank to deal with professionals.
We negotiate hard. Whether it's facing the bank's recovery team or presenting your case in a Lok Adalat in Cuttack, we fight for the lowest possible settlement figure.
Once the settlement amount is paid, we ensure you receive the 'No Dues Certificate' and that your loan account is closed in the bureau records.
Odisha Police has zero tolerance for extortion by recovery agents. Use these resources if you are being threatened.
Emergency: Dial 112.
Anti-Extortion (Bhubaneswar-Cuttack): 99389100. (WhatsApp/Telegram/SMS supported).
Bhubaneswar Control Room: 0674-100 / 0674-2973888.
National Helpline: 1930.
Odisha Cyber Helpline: 7077798111.
Cuttack Crime Branch: 0671-2305485.
Your Right: Agents cannot call at odd hours, use abusive language, or visit your workplace without notice. If they do, we help you file a complaint.
Keep these ready to speed up your settlement:
Our digital services are available across the state.
Capital City
Silver City
Steel City
Silk City
Western Odisha
Pilgrim City
Coastal Odisha
Bhadrak District
Yes, loan settlement is a fully legal financial process in Odisha. It is governed by Reserve Bank of India (RBI) guidelines and supported by state laws like the Odisha Money Lenders Act, 1939. The Odisha State Legal Services Authority (OSLSA) also actively facilitates settlements through Lok Adalats, making it a recognized method for debt resolution.
The Odisha Money Lenders Act, 1939, is a key protection for borrowers. It mandates that lenders must be registered and caps interest rates (typically 9% for secured and 12% for unsecured loans). Crucially, it empowers courts to reopen transactions where interest is excessive and enforces the 'Damdupat' rule, ensuring you don't pay interest exceeding the principal amount.
Absolutely. Whether you are in Bhubaneswar, Cuttack, or Rourkela, if you are facing financial hardship, you can settle your personal loan. We help you negotiate with banks to waive off penal charges and a portion of the interest, allowing you to close the loan with a single manageable payment.
AMA Legal Solutions is a digital-first Pan-India firm. We handle all negotiations, documentation, and legal notices remotely from our central office, serving clients across Odisha including Cuttack. For any physical legal representation required in the Odisha High Court or local tribunals, we collaborate with our network of experienced local lawyers.
The Commissionerate Police of Bhubaneswar-Cuttack has launched a dedicated Anti-Extortion Helpline (99389100) to tackle harassment. If recovery agents are threatening you or demanding illegal amounts, you can report them immediately. We also help you file formal complaints to stop such harassment.
Yes, receiving a SARFAESI notice does not mean the end of the road. You can still initiate a One Time Settlement (OTS). In fact, banks often prefer OTS to save the time and cost of auctioning property. We can represent you to stay the proceedings and negotiate a settlement before your property is at risk.
Settling a loan will mark your account as 'Settled' rather than 'Closed' in your credit report, which does impact your score. However, this is a temporary setback and far better than a 'Write-off' or legal default. We provide a post-settlement credit rebuilding guide to help you improve your score over time.
Extremely effective. Recent National Lok Adalats in Odisha have settled thousands of bank recovery cases, with settlement amounts running into crores. For example, in a recent session in Khordha district, over ₹23 crore was realized through settlements. It is a fast, cost-effective, and binding way to resolve your debt.
Yes, we understand the importance of agriculture in Odisha. For Kisan Credit Card (KCC) loans or tractor loans, specific relief schemes and OTS policies apply. We can guide farmers on how to avail these benefits and negotiate with banks like Odisha Gramya Bank for a fair settlement.
To assess your case, we need your loan sanction letter, the latest statement of account, any notices received from the bank (like 138 or SARFAESI), and your KYC documents (Aadhar/PAN). Proof of your financial hardship (like termination letter or medical records) is also vital for a good negotiation.
Speak to our loan settlement experts serving Bhubaneswar and Cuttack.
Call +91-8700343611Request CallbackWe also handle settlement for regional institutions.
Our loan settlement services are available across all states and union territories in India