Taking a loan in India has never been easier, but what follows can be far more punishing for many borrowers.
An in-house survey by Expert Panel, a fintech risk advisory and debt resolution platform, points to a shift in how credit is being used, and what happens when repayments start slipping.
Nearly 39% of borrowers surveyed said they had faced abusive recovery calls. Another 28% reported receiving frequent calls from multiple lenders.
In some cases, the .
About 11% said recovery agents had visited their homes or workplaces, while 8% reported threats of legal or police action.
These are not isolated experiences.
The survey also looks at why borrowers are finding it difficult to keep up with repayments.
Income disruption remains the most common reason. Around 31% of respondents said job loss or salary cuts affected their ability to repay.
Another 28% cited high EMI burdens relative to their income, while 19% said they were managing multiple loans at the same time.
Other factors include medical and family emergencies, as well as business-related losses. Taken together, the data suggests repayment stress is closely tied to financial vulnerability.
This lines up with broader signals in the system.
The Reserve Bank of India (RBI) has, in recent months, flagged risks in unsecured retail lending, particularly in personal loans and credit cards, segments that have seen rapid growth.
The reasons for taking loans offer another clue.
About 26% of borrowers said they took loans for medical emergencies. Another 22% borrowed for personal or family expenses, including education and weddings. Around 18% cited business needs or income disruptions.
A further share reported using credit for .
Only about 9% said their loans were used for asset creation such as housing or vehicles.
This suggests a shift from asset-backed borrowing to consumption-led credit.
Recent RBI data points in a similar direction. Household debt has risen to over 40% of GDP, with a growing share of non-housing loans, indicating a tilt toward consumption rather than long-term asset building.
The survey’s findings on recovery practices show what borrowers face once repayments are delayed.
Repeated calls, contact from multiple lenders, and in some cases, physical visits by recovery agents are among the experiences reported by respondents.
These practices have been under scrutiny in recent years, particularly with the rise of digital lending platforms and third-party recovery agents.
The RBI has issued guidelines on fair practices and cautioned lenders against harassment or coercive recovery methods. Complaints, however, continue to surface.
“The data clearly signals that borrowing today is increasingly driven by necessity rather than aspiration,” said Anurag Mehra, Director at Expert Panel.
“While credit penetration is essential for economic growth, it must be complemented by responsible lending and empathetic recovery practices.”
On paper, the system still looks steady.
The RBI has noted that gross non-performing assets are near multi-year lows, reflecting stronger bank balance sheets.
But early stress does not always show up there.
The RBI’s Financial Stability Report has flagged that unsecured retail lending, particularly personal loans and credit cards, has been growing faster than overall credit. This has prompted tighter norms and higher risk weights in recent months.
At the same time, household debt has risen to over 40% of GDP, with a growing share coming from non-housing loans.
This is where the survey findings begin to connect.
Stress is not yet visible in aggregate bad loan numbers. It is visible in borrower behaviour. Missed repayments, rising EMI burdens, multiple loans, and the recovery pressure reported by borrowers are early signals.
The RBI has already responded with tighter rules. But these trends tend to appear at the borrower level before they show up in system-wide data.
Taken together, the findings point to a shift that is already underway.
Borrowers are increasingly taking loans for immediate needs rather than long-term asset creation. At the same time, repayment stress is becoming more common among those with limited financial buffers.
The experience after default is also evolving. The survey suggests recovery efforts are becoming more persistent and, in some cases, more aggressive.
These trends sit alongside broader signals flagged by the central bank around rising unsecured lending and household leverage. On their own, each of these may not stand out. Together, they begin to form a pattern.