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 instant 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. These protections are part of the broader RBI digital lending framework, which outlines how regulated lenders must conduct recovery, disclose charges, and safeguard borrower rights in the digital lending ecosystem.
🛠️ 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