I never imagined that a loan taken during a family emergency would send my life spiralling so far off course.
In July 2025, I needed money urgently for medical reasons. I wasn’t able to borrow from anyone, and so, I trusted a non-banking financial company (NBFC) and took a payday loan from them. That was the beginning of my downfall—both mentally and financially.
Since then, I have been trapped in a cycle of paying off one loan and taking new ones.
At one point, I had so many loans with multiple NBFCs that I couldn't manage them with the salary I was earning.
'The Cyclic Trap of Loans'
There are certain NBFCs that give you a loan without any credit score check. They just take your salary slip, bank statements, and then take consent over a video through a mobile app or a website. The loan gets disbursed immediately.
The loan disbursed amount is around 12 percent less than the sanctioned amount. The 12 percent deduction is the processing fee, and the loan duration is about one month, i.e., from one payday to another.
They charge 1 percent interest every day. So, for a 31-day loan, you end up paying 31 percent interest on the sanctioned amount. In reality, this means you repay nearly 1.5 times the money that is actually credited to your account. Simply put, for every Rs 100 they give you, they demand around Rs 150 back within a month.
Because I needed the money so desperately, I agreed to every condition they laid out, no matter how cruel it was.
But, at these exorbitant rates, I couldn’t repay the loan. To clear one loan, I had to take out more loans and ended up borrowing from more than 10 payday companies.
'The Beginning of a Cycle of Harassment'
Since I was unable to pay the whole amount on time, I started getting threatening calls from the recovery agents. There were times when loan recovery agents came to my home without any prior notice, discussed my personal details with my neighbours, and defamed me.
They even made calls to my family members, friends, and office colleagues in their quest to recover money.
An NBFC called XpressLoan went a step further. They shared my loan-approval video, which I had provided them during the KYC process, with the HR at my workplace.
I couldn't show my face to my colleagues. I was called by my HR to discuss this. The HR, after discussions, stated that these emails and calls to colleagues were disturbing the workplace environment, and they terminated me immediately.
I have raised multiple complaints on the complaint management system portal of the Reserve Bank of India. The RBI closed those complaints, saying that I first need to raise a complaint with the lending companies. But there is no response from the lending companies.
I am still in debt, and I continue to get threatening calls from the loan recovery agents. I don't know if I would be able to come out of this trap.
(The Quint has reached out to XpressLoan on the issues raised by the borrower. Their response is awaited. The story will be updated as and when they respond.)
RBI's Norms For Loan Recovery
The RBI mandates that NBFCs should follow a strict code of conduct while recovering loans, ensuring the process remains lawful and respectful.
The apex body states:
Recovery agents are prohibited from using harassment, threats, or intimidation, and can contact borrowers only during reasonable hours, typically between 7 AM and 7 PM.
They must clearly identify themselves and cannot mislead borrowers about dues or legal consequences. The norms also protect borrower privacy, barring agents from contacting family members, colleagues, or using public shaming tactics.
Any recovery action must follow due legal process, with no use of force or illegal seizure of assets.
NBFCs are held accountable for their agents’ behaviour and are required to maintain a proper grievance redressal system, allowing borrowers to escalate complaints if guidelines are violated.
(The Quint has also reached out to the RBI regarding Vivek's complaints. The story will be updated once a response is received.)
(All 'My Report' branded stories are submitted by citizen journalists to The Quint. Though The Quint inquires into the claims/allegations from all parties before publishing, the report and the views expressed above are the citizen journalist's own. The Quint neither endorses nor is responsible for the same.)