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The process for altering characters located at a particular index in Java involves the following steps:

1. Create a string variable containing the original string.
2. Convert the string variable to a character array using the toCharArray() method.
3. Access the character at the desired index within the character array.
4. Modify the character as needed.
5. Convert the character array back to a string using the String() constructor.
6. Assign the modified string to the original string variable.