An Initiative of “SuryaShakthi Foundation” an NGO
An NGO registered as a Non-Profit Organisation under Section 8 of the Companies Act, 2013
Know Your Rights: Empowering India's Credit Borrowers
As a borrower, you have fundamental rights guaranteed by the Constitution of India, the RBI, and various consumer protection laws. This page aims to educate and empower you about those rights so that you are not harassed, misled, or unfairly penalised by banks, NBFCs, fintech lenders, recovery agents, or credit bureaus.
Right to Fair Treatment
- You have the right to be treated with dignity and respect by banks and financial institutions.
- No bank, NBFC, or recovery agent can use coercion, threats, public shaming, or drum-beating tactics.
- Banks must follow due process and act in a lawful manner while recovering dues.
Relevant Law: RBI Guidelines on Fair Practices Code for Lenders, RBI Master Circular on Recovery Agents.
Right to Privacy
- Your personal and financial information is protected under Article 21 of the Constitution (Right to Life & Privacy) and data protection principles
- No lender or fintech company can share your private data with third parties, social media, or credit bureaus without consent.
- Unauthorised calls to friends, family, or workplace about your loans violate your privacy.
Relevant Law: Supreme Court Judgment on Right to Privacy (Justice K.S. Puttaswamy case), RBI Data Protection Guidelines, IT Act, 2000.
Right to Data Protection
- You have the fundamental right to privacy, including the confidentiality of your financial data.
- No bank, NBFC, or credit bureau can
- Share your personal or financial information without your explicit consent
- Sell, leak, or transfer your data to third parties, fintechs, telemarketers, or recovery agents
- Even if you’ve defaulted, your data cannot be weaponised to threaten, harass, or shame you.
- You can
- Demand to know who accessed or shared your data
- File a complaint with the Data Protection Authority (when enacted) or approach the courts
Relevant Law: Right to Privacy (Puttaswamy Judgment, 2017 – Supreme Court), IT Act 2000, Draft Digital Personal Data Protection Act, 2023, RBI Master Circulars
Right to Dispute and Correct Credit Reports
- You have the right to access your credit report and dispute incorrect or outdated entries.
- Credit bureaus (like CIBIL, Experian, Equifax, CRIF High Mark) must respond within 30 days to any dispute raised.
- You cannot be blacklisted forever for one-time defaults or old dues.
Relevant Law: CICRA Act, 2005 (Credit Information Companies Regulation Act), RBI Directions on Credit Reporting.
Right Against Harassment by Recovery Agents
- You cannot be called excessively, humiliated, or threatened.
- Recovery agents must:
- Carry proper IDs
- Follow specific time slots (8 am to 7 pm)
- Not approach you at inappropriate times
- Not use loudspeakers, drum-beating, or neighbourhood shaming tactics
Relevant Law: RBI Master Circular on Recovery Agents (2008), Indian Penal Code (Section 503 – Criminal Intimidation), D.K. Basu Guidelines.
Right to One-Time Settlement (OTS)
- You can negotiate with your lender for a one-time settlement of your loan.
- After settlement, your credit record must be updated to reflect “Settled” or “Closed” status.
Relevant Law: RBI Framework for Resolution of Stressed Assets, RBI Prudential Norms.
Right to Be Heard and Complain
- You have the right to
- File a complaint with your bank's grievance redressal cell
- Approach the Banking Ombudsman if unsatisfied
- Approach Consumer Courts or RBI Complaint Portal
- You are also protected against unfair contract terms and digital lending traps.
Helpful Links:
- RBI Complaint Portal: https://cms.rbi.org.in
- Consumer Helpline: https://consumerhelpline.gov.in
Right to Seek Legal Protection
- If your rights are violated, you can:
- File a complaint under the Consumer Protection Act
- Approach the High Court or Supreme Court under Article 32 or 226
- File a case for defamation, harassment, or mental agony
- File a case for defamation, harassment, or mental agony
- Seek protection under the Insolvency and Bankruptcy Code (IBC) or SARFAESI Act provisions
Rights of Women Borrowers
- Special protections exist for:
- Special protections exist for:
- Widows, single mothers, or female borrowers
- No harassment during pregnancy, illness, or late hours
- Women can seek relief under Domestic Violence Act if coercive recovery affects household dignity
Right to Financial Inclusion
- You cannot be discriminated against for:
- Past defaults under genuine hardships
- Caste, gender, region, or language
- Credit bureaus and lenders must ensure access to banking for all.
Relevant Law: Financial Inclusion Guidelines, RBI Vision Document, UN SDG Goals
Right to Seek Clarification Before Loan Agreement
- Before signing any loan documents, you have the right to understand every clause in the agreement.
- Banks and NBFCs must not mislead or pressure you into signing without proper explanation.
- You can ask for time to read, consult, or verify details — including hidden charges, penalties, pre-closure fees, and interest calculations.
- No signature should be taken on blank forms or undated documents.
Relevant Law: RBI Guidelines on Fair Lending Practices, Indian Contract Act, 1872.
Right to Protection from Misuse of Digital Lending Apps
- You are protected from unauthorized mobile apps that:
- Access your contacts, gallery, SMS, or call logs
- Threaten to leak personal information
- Use cyberbullying or blackmail tactics for recovery
- RBI has mandated that only regulated entities can lend through apps. If you are affected, you can:
- Lodge a cybercrime complaint
- Report the app to RBI and Google Play Store
Relevant Law: RBI Circular on Digital Lending (2022), IT Act, 2000, Data Privacy Guidelines
Right Against Misuse of SARFAESI Act
- Banks and financial institutions cannot abuse SARFAESI Act provisions to harass borrowers.
- SARFAESI can only be invoked for secured loans above ₹2 lakhs, and after following proper legal notice and timelines.
- Borrowers have the right to:
- Get a 60-day notice under Section 13(2)
- Represent or object within the notice period
- Appeal to the DRT (Debt Recovery Tribunal) if possession is taken illegally
- Publishing your photograph or humiliating you publicly under SARFAESI is illegal and a violation of privacy and dignity.
Relevant Law: SARFAESI Act, 2002; Supreme Court judgments; Article 21 of the Constitution
Right Against Digital Discrimination
- You have the right to equal access to credit without being unfairly judged by:
- AI-based algorithms
- Automated credit scoring models
- Unverified digital footprints
- No digital lender or credit bureau can:
- Penalize you for past business failure, ZIP code, or profession
- Deny loans or insurance based on social scoring or profiling
- You can demand human review of any adverse digital decision.
Relevant Law: RBI Guidelines on Digital Lending (2022), Draft Digital Personal Data Protection Bill, 2023, UN Guidelines for Digital Inclusion
Right to Dignified Default & Rehabilitation
- Borrowers in default — due to business failure, medical emergency, job loss, or pandemic — have the right to dignified treatment.
- Default is not a crime, and you cannot be:
- Publicly shamed or called a willful defaulter without investigation
- Denied a second chance to rebuild credit
- You can request:
- Re-scheduling or restructuring of loans
- Access to rehabilitation schemes, MSME relief, or government support programs.
- Vilification campaigns, humiliating visits, or WhatsApp group leaks by banks or agents are punishable.
Relevant Law: RBI Prudential Framework on Stressed Assets, Consumer Protection Act, UN Declaration of Human Rights, Articles 14 & 21 of the Constitution.
Right to Receive Information
- You have the right to receive complete and correct information about:
- Loan terms
- Interest rates & fees
- Repayment schedule
- Your credit score and report
- Loan settlement options
- All terms must be transparent and explained in your local language.
Relevant Law: RBI Circular on Transparency in Lending, Consumer Protection Act, 2019.
Don’t suffer in silence. Know your rights. Raise your voice.
This movement is here to stand with you. You are not powerless — you are protected by the Constitution and the law.
You Are Not Alone
More than 100 million Indian citizens are affected by harsh credit reporting, biased scoring systems, and inhuman recovery tactics. That’s why this movement exists — to fight for dignity, justice, and financial reform.
If your rights have been violated, we are here to help.
Contact our Legal Support Team | Email: support@justiceforcreditborrowers.com
File a complaint through our Online Form
Join our mission to fight for Justice for Credit Borrowers across India.
Donate & Support this Cause
We are here to help every borrower who has been wronged by the system.
“Justice for Credit Borrowers is an initiative of
Surya Shakthi Foundation”
to know more, visit www.suryashakthi.org.
About Us
Justice for Credit Borrowers is a powerful citizens’ initiative launched by the Surya Shakthi Foundation, a NGO registered as a Non-Profit organization under the Section 8 of the Companies Act 2013 and committed to social justice, financial inclusion, and human dignity.
About Suryashakthi
To learn more about our legal standing, governance, and broader activities, please visit our official NGO website: www.suryashakthi.org
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