RBI rules: read the RBI guidelines on loan settlement and recovery
  • Already in force: lenders and recovery agents must not call you for overdue loans before 8 AM or after 7 PM
  • Credit report correction not done within 30 days of your complaint? You get ₹100 for each day of delay
  • Recovery agents must not threaten, humiliate or harass you, your relatives, friends or co-workers
  • From 1 Jan 2027, banks must also tell you the recovery agency’s details at least one day before its first visit
  • From 1 Jan 2027, banks must list their recovery agencies on their website
  • Lenders agree settlements under their own Board-approved policy; it is not an automatic right
  • After a compromise settlement, lenders wait at least 12 months before lending to you again (non-farm loans)
  • No reply from your bank in 30 days, or unhappy with it? You can complain to the RBI Ombudsman at cms.rbi.org.in
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Borrower rights

Borrower Rights in India: A Simple Guide

This page lists the rights you have as a borrower in India: written settlement terms, property papers back within 30 days, a free credit report every year, compensation if a credit-report correction is delayed, and a free complaint route to the RBI Ombudsman. If an agent is calling or visiting you right now, use the practical steps on the Recovery Agent Harassment page. The settlement circular itself is summarised on RBI Guidelines on Loan Settlement. Both are linked below.

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Reviewed by Adv. AK Mishra · Last reviewed:

Your rights during loan recovery

  • Facing recovery agent harassment now? See the main guide: [recovery agent harassment help](/recovery-pressure)
  • Recovery calls only between 8 AM and 7 PM, unless you asked for other times (RBI Responsible Business Conduct Directions, 2025; in force now for banks and NBFCs)
  • Polite conduct: lenders and agents must not intimidate or harass you
  • Privacy: they must not harass your relatives, friends or co-workers, or shame you in public
  • Honest information: no false or misleading statements about your dues
  • An SMS or email alert when your lender reports a default to a credit bureau, if it has your contact details (RBI, 26 October 2023)

Your other rights at a glance

  • Settlement terms in writing before you pay, and payment only to the lender
  • Property papers back within 30 days of full repayment or settlement
  • A free full credit report once a year from each credit bureau
  • A free complaint route: the lender first, then the RBI Ombudsman at cms.rbi.org.in
  • Threats of violence can also be criminal intimidation under Section 351 of the Bharatiya Nyaya Sanhita, 2023. Full recovery-call rules are on our recovery agent harassment page

Your rights in a loan settlement

  • No automatic right to settle. Each bank or NBFC decides under its own board-approved policy (RBI, 8 June 2023).
  • Ask for the terms in writing before you pay: amount, dates, and that the account will be closed.
  • Pay only the lender, into its official account.
  • Get your papers back. After full repayment or settlement, the lender must return original property documents and remove registered charges within 30 days. If the delay is the lender's fault, it must pay you ₹5,000 for each day of delay (RBI, 13 September 2023).
  • "Settled" status. A settled account is usually reported as "settled", not "closed". Ask for a no-dues letter (NOC) and keep it.

Your credit report rights

  • A free full credit report with score once every calendar year from each credit bureau (RBI, 26 October 2023).
  • Ask for corrections. If a lender rejects your correction request, it must tell you why.
  • Compensation for delay. If your credit report complaint is not resolved within 30 days, you get ₹100 for each day of delay (RBI, 26 October 2023; in force from 26 April 2024).

How to complain

  1. Complain to the lender first, in writing, with evidence. Keep the reference number.
  2. RBI Ombudsman. If the lender does not reply within 30 days, or you are unhappy with the reply, file at cms.rbi.org.in. You can also email crpc@rbi.org.in or call 14448.
  3. Time limit. File within 90 days after the lender's reply or after the 30 days end, whichever is later.
  4. It is free. You do not need to pay anyone or use an agent to file.
  5. Threats or violence. Go to the police.

Our service commitments

  • We will file your harassment complaint with the bank and with the RBI
  • Our legal desk responds within 48 hours to illegal recovery threats with a formal reply
  • We stand between you and unlawful recovery practices
  • We will walk you through cancelling an auto-debit, UPI AutoPay or NACH mandate, step by step
  • We will help you dispute unauthorised deductions from your account
  • We will help you when a recovery agent visits your home or workplace
  • You get a clear written plan for your case, with no hidden fees

Limits and risks

  • A lender can still ask you to repay and can take lawful legal action. These rights are about how it does that.

Sources used on this page

Loan Settlement Guide

Short guides on loan settlement, loan default, credit card settlement and RBI recovery rules.

Indian salaried man on a sofa calmly reviewing loan papers at home
Personal Loan Settlement in India: Process, CIBIL & HelpHow loan settlement works with banks, NBFCs and loan apps.Read
Indian man at home reading a bank letter at the dining table
Personal Loan Default in India: What Happens Next (2026)NPA stages, CIBIL, recovery calls, notices and the jail myth.Read
Unbranded credit card and phone on a table for a settlement discussion
Credit card settlement: process, RBI rules and CIBILWhat banks ask for and RBI’s 30-day CIBIL update rule.Read
Person declining an unknown recovery call on a mobile phone
RBI Recovery Agent Rules from 1 January 2027Calling hours, notice before visits, recorded calls and complaints.Read

Common Questions

What are my rights as a borrower in India?

Under RBI rules: polite recovery only between 8 AM and 7 PM, no threats or shaming, honest information about dues, settlement terms in writing, property papers back within 30 days of closure, a free credit report every year, and a free complaint route to the RBI Ombudsman.

Are all recovery calls illegal?

No. A lender may contact you about overdue payments. The rules limit how: the timing, how often, and no threats, harassment or false statements.

Can a lender refuse a loan settlement?

Yes. RBI's June 2023 rules let lenders settle under their own policies, but they do not give borrowers a right to a settlement.

How soon must I get my property papers after settlement?

Within 30 days of full repayment or settlement. If the lender is at fault for a delay, it must pay ₹5,000 for each day of delay.

Is filing an RBI Ombudsman complaint free?

Yes. RBI says no fee is charged, and you do not need any agent or advocate to file.

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Recovery agent harassment helpRBI guidelines for loan settlementLegal notice for loan defaultRecovery agent complaint letter formatLegal recovery vs recovery agent harassmentCan a recovery agent visit your home or workplace?NOC after loan settlement