Loan recovery agents in India: what RBI rules allow and what to do about harassment

A lender may use recovery agents to collect overdue personal loan dues, but the lender stays responsible for their conduct, and RBI instructions set firm limits. Agents and lender staff must not intimidate or harass you, verbally or physically, must not call before 8 a.m. or after 7 p.m. on overdue loans, must not humiliate you publicly or intrude on the privacy of your family, referees or friends, and must not send threatening or anonymous messages or make false or misleading statements. For digital loans, the lender must send you the agent's details by SMS or email before the agent contacts you. If you face harassment, record it, complain to the lender in writing, go to the police or the cybercrime portal for threats, and escalate a regulated lender to the RBI Ombudsman.

This guide belongs to the personal loan mistakes guide. It is general information, not legal advice.

What recovery agents may and may not do

Allowed	Not allowed
Remind you of overdue dues by phone, message or visit	Threats of violence, arrest or social humiliation
Visit at a reasonable time, identifying themselves	Calls before 8 a.m. or after 7 p.m. for recovery of overdue loans
Discuss repayment options and give you the lender's contact	Calls or messages to your contacts, colleagues or relatives to shame you
Collect payment through the lender's official channels, with a receipt	Abusive language, persistent calls meant to harass
Carry the lender's authorisation and identity card	False claims, such as pretending to be police or court officials
	Threatening or anonymous messages, morphed images, public posts

For microfinance loans (collateral-free loans to low-income households), the limits are stricter: no calls before 9 a.m. or after 6 p.m.

Lenders must have a board-approved policy on recovery, train and verify their agents, and give the borrower details of the recovery agency when the case is passed on. They must also have a grievance mechanism for complaints about recovery.

Your rights in practice

Ask for identification. An agent should show the lender's authorisation letter and an identity card. Note the name and agency.
Ask for the dues in writing. You are entitled to know the overdue amount, charges and how they were calculated.
Pay only through official channels. Pay the lender directly, or get an official receipt for any cash payment. Under the Digital Lending Directions, cash recoveries must be reflected in your account the same day.
Keep records. Note dates, times, numbers and what was said. Save messages and call recordings where lawful.
Do not hand over documents or sign blank papers at a visit.

Step-by-step if you are being harassed

Write to the lender (customer care and the grievance officer named in your KFS), describing the incidents with dates and numbers, and asking it to stop. Keep the acknowledgement.
Report threats and abuse to the police, and online abuse, morphed images or contact-list messaging on the National Cyber Crime Reporting Portal or helpline 1930.
If the lender is regulated and does not resolve your complaint within 30 days, or rejects it, file with the RBI Ombudsman on the RBI Complaint Management System. See how to complain.
If the lender is not regulated by the RBI, report it on Sachet and to the police.
Talk to a lawyer if you receive legal notices or threats of court action you do not understand.

Recovery and app lenders

Most harassment complaints in recent years have involved small app loans. Under the RBI Digital Lending Directions, 2025, apps must not access your contacts, files or call logs, the lender must tell you in advance which agent will contact you, and LSPs cannot charge you recovery fees. An app that messages people in your contact list is breaking the rules; if the lender behind it is unregulated, the loan itself may be illegal. See loan apps and digital lending rules.

Owing money is still real

The conduct rules protect you from harassment; they do not cancel the debt. A lender can still:

levy penal charges disclosed in the KFS for late payment;
report the overdue to credit information companies after alerting you;
start legal proceedings for recovery as the law allows.

Talking to the lender early about a revised plan is usually the best way to stop calls. See missed EMIs, penal charges and settlement.

A sample complaint to the lender

Keep it factual:

Your name, loan account number and registered mobile number.
"I am writing to complain about the conduct of recovery agents acting for you."
A list of incidents: date, time, number, what was said or done.
"These actions breach RBI instructions on the conduct of recovery agents. Please stop them, tell me the action you have taken, and give me a written statement of my dues."
Attach screenshots and a list of calls.

Frequently asked questions

Can a recovery agent come to my office?

Agents may contact you, but they must not humiliate you or intrude on the privacy of colleagues. If visits are meant to shame you, complain in writing to the lender.

Can they call my family or friends?

They must not intrude on the privacy of your family members, referees or friends, or use them to pressure you. Report such calls.

Can the lender take my property for a personal loan?

A personal loan is unsecured, so there is no asset to repossess without a court process. Threats to seize your goods without a court order should be reported.

Will complaining make my loan worse?

A complaint does not change your dues, but it puts the lender on notice and creates a record. Keep paying what you can and talk to the lender about a plan.

Sources

Reserve Bank of India — instructions on recovery agents and outsourcing of financial services, Fair Practices Code, Digital Lending Directions 2025
National Cyber Crime Reporting Portal — reporting online harassment (helpline 1930)
RBI Complaint Management System — complaints against regulated lenders
RBI Sachet portal — reporting unregulated lenders