These expressions are very similar, but there is a slight difference in meaning.

ON TIME

On time means that there is a specific time established when something is supposed/expected to
happen, and it is happening at the planned time.

 My job interview is scheduled for 4:00 PM.

If I arrive at 4:00 PM, I am on time for the interview.
 The flight is scheduled to leave at 10:30 AM.
If it leaves at 10:30 AM, the flight is leaving on time.
 The class is supposed to start at 9:00.
If it does start at 9:00 with no delays, it is starting on time.

If you say “He’s always on time” it means he is punctual; he always arrives at the correct time,
he is not late.

If you say “He’s never on time” it means he is always late.

IN TIME

In time means that something happened at the last moment before it was too late; before
something bad would happen.

 The accident victim was seriously injured; they got him to the hospital just in time.
(If they hadn’t arrived at the hospital, he might have died)
 I missed the opportunity to go to that college because I didn’t submit my application in
time.
 I left home early and arrived in plenty of time to catch my flight.
 I got stuck in traffic and arrived just in time to catch my flight.