F.A.Q

Can you be jailed for missing EMIs?

No, defaulting on a loan is not a criminal offense under Indian law. It’s a civil issue. This means
you cannot be jailed just because you couldn’t repay.

  • You can only be jailed if:
  • You issued a cheque that bounced (under Section 138 of the Negotiable Instruments Act)
  • You were involved in fraud (like forging documents or hiding income)
  • You ignored court summons multiple times
  • Constant follow-up calls
  • Sending recovery agents
  • Legal notice under civil procedure
  • Filing case with DRT or civil court

We help you legally respond to notices, stop harassment, and negotiate a settlement without
going to court.

Final Tip

If you’re worried about legal trouble due to debt, contact CredRinnMukt for a free consult.
We’ll guide you with legal backing and dignity.

Yes, but you need to follow a process—don’t just stop paying. Here’s the safe, legal way.

What NOT to do:

  • Avoiding calls
  • Defaulting without notice
  • Relying on verbal agreements with agents

What You Should Do:

  • Write to the lender requesting moratorium or restructuring
  • Get everything in writing
  • Take legal help to respond if they decline
  • Use CredRinnMukt to negotiate on your behalf

Most borrowers don’t know that not all loan defaults are treated equally under law. Here’s the
key legal difference between civil and criminal loan default in India.

Civil Default

  • Happens when you fail to repay
  • Lender can file a civil suit for recovery
  • You cannot be jailed for civil default

Criminal Default

  • Happens if there is intent to cheat, forge, or issue bounced cheques
  • punishable under BNS (IPC) and NI Act
  • May involve arrest and court case
  • We guide your response and settlement to avoid escalation to criminal charge
  • Confused about your legal position? Get free legal insight at CredRinnMukt