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The Reserve Bank of India (RBI) has introduced updated rules in 2025 for loan recovery and repayment to strengthen borrower protection, improve transparency, and ensure fair practices by lenders. These guidelines impact banks, NBFCs, fintech, and loan borrowers across India.

At CP Advisor, India’s largest loan distributor for personal loans and business loans, we explain the key changes you must know before applying for or repaying a loan.

Key Highlights of RBI’s New Loan Recovery Guidelines 2025

1. Borrower Protection in Recovery Process

• Lenders cannot use coercive or threatening methods for loan recovery.

• Recovery agents are required to maintain professional behavior.

• Recovery calls and visits are permitted only between 8 AM – 7 PM.

Tip from CP Advisor: Always ensure your lender follows RBI’s code of conduct. If you face harassment, you can file a complaint directly with RBI’s ombudsman.

2. Digital Recovery Monitoring

• RBI has mandated that all recovery communications must be digitally recorded.

• SMS, emails, and app notifications are preferred over physical visits.

• Borrowers should receive a written repayment plan before recovery attempts begin.

3. Flexible Repayment & Settlement Options

• Borrowers struggling with repayment can opt for:

  • One-time settlement (OTS)

  • Restructuring of loan tenure

  • EMI moratoriums under financial distress

• Lenders must clearly inform customers about charges and penalties upfront.

Example: If you took a ₹5 lakh personal loan and face job loss, lenders must allow restructuring instead of straight recovery action.

4. Credit Score Protection

• RBI has directed lenders to give a 30-day grace period before reporting missed payments to credit bureaus.

• This prevents immediate negative impact on your CIBIL score.

5. Use of Technology in Recovery

• AI and analytics will help lenders identify genuine defaulters vs. temporary cash-flow issues.

• Digital dashboards for borrowers to track dues, repayment history, and settlement offers are now mandatory.

What This Means for Borrowers in 2025

• More transparency in loan repayment.

• Safer recovery practices with fewer chances of harassment.

• Greater flexibility in EMI repayment.

• Protection of credit health even during financial stress.

Call to Action (CTA) – Borrow Smart with CP Advisor

Looking for a hassle-free personal or business loan with transparent repayment terms?
? Apply with CP Advisor Digital Pvt Ltd – India’s trusted loan distributor.

• Fast Approvals

• 100% Digital Process

• Multiple NBFC & Bank Partners

• Safe & RBI-Compliant Recovery Practices

? Contact us today: www.cpadvisordigital.in | ☎️ +91 8200241300