Loan - daily harrassment and humiliation

Dear Client,

Non-payment of a loan due to genuine financial hardship such as resigning for your son’s medical needs is a civil matter, not a criminal offence, and recovery agents cannot legally harass, threaten, or track you beyond lawful means under the RBI Fair Practices Code for Lenders issued by the Reserve Bank of India. However, you should not ignore the ongoing arbitration, as an ex-parte award may be passed and later enforced against your assets; instead, file a reply explaining your circumstances and intention to settle once financially stable.

You are free to relocate to Delhi and start a small business this is a practical step toward recovery but maintain basic communication with the lender to avoid being treated as absconding. If recovery agents engage in harassment, you have the right to complain to the lender, RBI Ombudsman, or even the police. Focus on stabilizing your income first and, once you accumulate some funds, approach the lender for a reasonable settlement, as many lenders are open to negotiated closures after prolonged default.