Real Story: Drowning in Debt
Back in late 2023, I found myself in an unexpected financial crisis. A family emergency drained my savings, and I took a quick ₹10,0000 loan through a loan app. It felt convenient—approval in minutes, money in my account almost instantly. But when I couldn’t repay on time due to a delayed salary, the nightmare began.
The first day after I missed my EMI, I got 4 SMS reminders and 3 app notifications. By the third day, calls from different numbers began, each more aggressive than the last. On Day 5, they sent a message to my friend (yes—they accessed my contact list) saying I had committed financial fraud.
That was the breaking point. I felt cornered and humiliated. But I also knew I wasn’t alone—and I needed to act smartly, not emotionally.
This guide is not just about rules and policies—it’s everything I learned while pulling myself out of that mess.
🚫 1. What Happens Immediately After You Miss an EMI
- You’ll be charged a late payment fee (usually 2–5%)
- SMS reminders and app push alerts start right away
- Calls from recovery agents begin after 3–7 days
If your delay crosses 10–15 days:
- They may freeze your borrowing account
- Your details may be reported to credit bureaus
⚖️ 2. Legal Trouble: Can You Be Arrested?
No, you cannot be arrested just for missing a loan payment.
Under Indian law, personal loan default is a civil issue, not a criminal one.
However:
- If you issued a cheque that bounced or submitted fake documents, legal issues can arise
- The company may file a civil recovery suit
📵 3. What If the App Starts Harassing You?
This is exactly what happened to me. Once I delayed beyond a week, the recovery agent started calling from random numbers. One of them even used foul language.
Worse, my contact got a message implying I was a scammer. That moment pushed me to:
- Go to Settings > Apps > Permissions and revoked contact/gallery access
- File a complaint at https://cybercrime.gov.in
- Blocked all known numbers
- Called the 1930 helpline and explained the situation
You should do the same if harassment begins.
🔗 Here’s a complete guide on what to do if a loan app threatens your contacts
📉 4. Will My Credit Score Be Ruined?
In my case, yes. Since the app was partnered with a registered NBFC, the missed payment was reported to CIBIL.
- My score dropped from 726 to 653
- Took me around 6 months to recover it after I repaid in two parts and got a No Due Certificate
If you default, expect:
- Drop in score (30–70 points initially)
- A flag on your credit history if the default is long-term
✍️ 5. What I Did to Fix the Situation
I didn’t have the full ₹10,000 ready. So I did the next best thing:
- Called their support, explained my situation
- Paid ₹3,000 within 10 days
- Paid the rest in 3 weeks
Once they saw repayment intent, they backed off and even removed my number from their call list.
Lesson: Don’t go silent. Show effort to repay—even in parts.
🛡️ 6. Your Rights as a Borrower
By RBI law:
- Agents cannot contact you outside 8 AM – 7 PM
- No threats, abuse, or sharing your debt publicly
- You have the right to file an FIR for defamation or blackmail
- RBI’s Fair Practices Code applies to all NBFC-partnered apps
🛠️ 7. What You Can Do Today
- Email or call the app’s customer support
- Ask for an extension or part-payment option
- File an RBI complaint or consumer grievance if they misbehave
- Monitor your CIBIL score and track changes
🌱 Final Thought: You’re Not a Criminal
Financial stress is real. And missing an EMI doesn’t make you a fraud. I’ve been there—and I bounced back.
Take action, document everything, and remember: You have more power than you think.
Need help rebuilding your credit? Read this next: How to Build Your CIBIL Score with Small Loan Apps