In Delhi, Abhay missed a loan instalment due to his wife’s medical bills. Recovery agents began with calls but soon threatened him in person. This painful story repeats widely across India. A survey by Expert Panel found 39% of borrowers suffer abusive recovery calls, 28% get multiple calls, and 11% report visits at home or work. Job losses and high EMI burdens cause defaults but lenders often respond with threats. Expert Panel’s Anurag Mehra said, "If I am defaulting on my loan, it is not a criminal offence." RBI rules forbid harassment and require banks to disclose themselves, but many recovery agents don’t. RBI data shows bank complaints rose to over 2.4 lakh, mostly about loans, with private banks leading. The Supreme Court in 2007 condemned strong-arm tactics. Tamil Nadu recently criminalised loan recovery harassment with penalties of 3-5 years in jail and fines. Union Finance Minister Nirmala Sitharaman urges NBFCs to follow fair recovery codes. Mehra stresses settlement over court battles, noting 99% of cases handled by Expert Panel settle without litigation. Recovery harassment remains a serious concern as the credit market grows fast in India.