Missing a loan payment is stressful, and stories about recovery agents can make it worse. In India, loan recovery is governed by Reserve Bank of India (RBI) rules and by each lender’s own Fair Practices Code, and both set clear limits on what lenders and their agents can do.
Here are five common myths about personal loan recovery, the facts behind them, and what you can do if you’re treated unfairly.
Myth 1: Nothing happens until you’ve missed several EMIs
Some borrowers believe a single missed EMI goes unnoticed until the account is months overdue.
The fact: A missed EMI has consequences straight away, even though formal recovery comes later.
- Late payment charges usually apply from the day after the due date, as set out in your loan agreement.
- As per the RBI’s credit information reporting directions, lenders must report repayment data to credit bureaus every week from July 1, 2026, so a missed EMI can show up on your credit report within days.
- An account is classified as a non-performing asset (NPA) once dues are more than 90 days overdue.
If you know you’ll miss a payment, contact your lender before the due date. It’s usually easier to find a solution early than after the account falls behind.
Myth 2: Recovery agents can say or do whatever they like
Many borrowers fear threats, abuse or being shamed in front of family and colleagues.
The fact: RBI rules and lenders’ codes of conduct strictly limit how agents can behave. Under Fibe’s Fair Practices Code, for example, agents must:
- call or visit only between 8 am and 7 pm, unless your work or circumstances require otherwise
- identify themselves and the company they represent at the start of every interaction
- show their identity card, and carry a letter of authority
- contact you on your registered mobile number, using recorded lines
- use polite, non-threatening language
They must not:
- threaten, intimidate or harass you, verbally or physically
- contact your family, friends, referees or colleagues to shame you
- publish your name or share your loan details with anyone else
- call you repeatedly, send inappropriate messages or contact you through social media
- visit during a bereavement or similar difficult time
Myth 3: Lenders can seize your belongings for an unpaid personal loan
A common fear is that an agent can walk in and take your property.
The fact: A personal loan is unsecured, so there’s no collateral for a lender or agent to seize. Recovery agents have no power to take your belongings.
That doesn’t mean there are no consequences. If dues stay unpaid, a lender can take legal action, such as filing a civil case or starting arbitration. A bounced repayment mandate or cheque can also lead to separate legal proceedings.
Myth 4: Settling a loan is the same as closing it
When repayment gets difficult, some borrowers are offered a settlement: paying less than the full amount owed. It can sound like a clean exit.
The fact: A settled loan is reported to credit bureaus as “settled,” not “closed.” Future lenders see that you didn’t repay in full, which can make borrowing harder or more expensive for years.
Before you accept any settlement:
- ask whether paying in full, perhaps over a revised schedule, is possible instead
- get the settlement terms in writing from the lender, not just verbally from an agent
- make sure you receive a closure letter or No Dues Certificate once you’ve paid
Under Fibe’s Fair Practices Code, agents cannot promise a settlement amount, a change in your credit bureau status or a No Dues Certificate without approval from the company.
Myth 5: One default ruins your credit forever
Some people assume that after a default, they’ll never get credit again.
The fact: A default does real damage, and it stays on your credit report. It doesn’t have to be permanent, though. Once you clear your dues, a record of on-time payments over the following months and years helps rebuild your score. Lenders also give weight to your recent repayment behaviour.
How to Check That an Agent Really Represents Fibe
Fraudsters sometimes pose as recovery agents. A genuine Fibe collection agent must show you their identity card. Before you share any details or make a payment, check that:
- the agent has told you their name and that they represent Fibe
- they’ve shown you their identity card, and can show a letter of authority
- they’re contacting you on your registered mobile number
- they’re asking you to pay only through the Fibe app or a payment link sent by Fibe
If an agent refuses to show their identity card, don’t share any details or make a payment. Contact Fibe on 020-67639797 or at care@fibe.in to check.
Never pay in cash, into a personal bank account or through any other method. Fibe accepts repayments only through the Fibe app or a payment link sent by Fibe, and agents are not allowed to collect cash or take payments into personal accounts. If you’re unsure whether a link is genuine, open the Fibe app and pay from there.
How to Raise a Complaint with Fibe
If you believe an agent has broken these rules, or you’re unhappy with how your account has been handled, you can complain through Fibe’s Grievance Redressal Policy.
- Contact Fibe. Call 020-67639797, email care@fibe.in, or write to 404, The Chambers, Viman Nagar, Pune 411014. Include your Loan Account Number, what happened and your registered contact details. Fibe aims to respond within 7 working days.
- Escalate to the Nodal Officer. If you don’t get a response in time or aren’t satisfied, email grievance@fibe.in. The Nodal Officer aims to resolve grievances within 5 days of receiving them.
- Escalate further. You can also lodge a complaint on the RBI’s Sachet portal. For escalation to the RBI, the lending partner’s own Grievance Redressal Policy applies. See Fibe’s lending partners.
Keep a record of calls, messages and dates. It makes your complaint easier to investigate.
If You’re Finding EMIs Hard to Manage
The best time to act is before you miss a payment. Contact your lender early, explain your situation and ask what options are available. For practical steps, read our guide on how to manage EMIs after losing your job.
FAQs on Loan Recovery in India
What time can recovery agents call me?
Under Fibe’s Fair Practices Code, agents may call or visit only between 8 am and 7 pm, unless your work or circumstances require otherwise. If you’ve asked not to be contacted at a particular time or place, agents should respect that as far as possible.
Does a recovery agent have to show an ID card?
Yes. A Fibe collection agent must show you their identity card. If they refuse, don’t share details or make a payment, and contact Fibe on 020-67639797 or at care@fibe.in.
Can a recovery agent contact my family or employer?
Agents must not contact your family, friends, referees or colleagues to humiliate or pressure you, and they must not share your loan details with anyone.
What should I do if a recovery agent harasses me?
Note the date, time and what was said, then complain to the lender. With Fibe, email care@fibe.in or call 020-67639797, and escalate to grievance@fibe.in if the issue isn’t resolved.
Can recovery agents take my belongings for an unpaid personal loan?
No. A personal loan is unsecured, and agents have no power to seize property. Lenders can pursue unpaid dues only through legal channels.
Does settling a loan affect my credit score?
Yes. A settled loan is reported as “settled,” which future lenders see as not repaid in full. Where possible, clearing the full amount is better for your credit history.