Money & banking › Loan, EMI and recovery
Business loan in default and bank is threatening
What usually matters in this situation, and the papers to keep ready before you meet an advocate or free legal aid (call 15100).
Make my own list — free, 2 minutesYour situation
- What kind of loan is it? Business / MSME loan
Papers to gather
- Loan agreement, sanction letter and key fact statement (KFS)
Shows what you actually agreed to. Where: Lender's app, email, branch (you can ask for a copy). - Loan account statement (statement of account)
Shows EMIs paid, charges and the outstanding. Where: Lender's app/website or written request. - Your bank statement showing EMI debits and bounces
Checks the lender's figures. Where: Net banking.
You may also need, depending on your answers
- Call log, recordings and messages from recovery agents — Abusive conduct breaches RBI rules.
- Messages your family/friends received from the lender — Contacting your contacts to shame you is a serious breach.
- The notice received, with envelope — Each notice has its own reply/objection period.
- Possession notice, panchnama or vehicle repossession papers and inventory — Possession must follow procedure; vehicle seizure needs notice and an inventory.
- Settlement offer or sanction letter on the lender's letterhead — Verbal settlements are a common trap.
- Closure proof and your written request for NOC and original documents — RBI rules require original property documents to be returned within 30 days of closure, with compensation for delay.
- Your complaint to the lender's grievance officer and reply — Usually required before an RBI Ombudsman complaint.
- Proof of hardship (termination letter, medical bills, business accounts) — Supports a restructuring or settlement request.
- Insurance policy linked to the loan — May pay EMIs in some situations.
What the law says
RBI rules govern recovery conduct and digital lending. Secured-loan enforcement follows the SARFAESI Act, with appeals to the Debts Recovery Tribunal.
General information, not legal advice.
Saboot will also ask
- Who lent the money?
- What is happening now?
- How far behind are the EMIs?
Similar situations
- Recovery agents come home and threaten my family
- Bank sent a SARFAESI notice for my home loan
- Car or bike was seized for missed EMIs
- Paid off my loan but bank won’t give the NOC or papers
- Want a one-time settlement with the bank
- Bank added charges I don’t understand to my loan
- Gold loan company wants to auction my gold
- I lost my job and can’t pay EMIs
Sources
- RBI complaint portal (Integrated Ombudsman Scheme)
- RBI (Digital Lending) Directions, 2025 — 8 May 2025
The full guide: Loan or EMI trouble — recovery calls, bank notices, settlement · All situations