New Delhi, Aug. 13 -- Once an EMI is missed, the traditional loan recovery process can quickly turn into a high-pressure exercise. Borrowers who default are often subjected to automated reminders, calls and even field visits.

"The truth is that recovery remains one of the most broken parts of the lending ecosystem," said Ananth Shroff, founder and CEO of DPDzero, an AI-powered debt collection platform. "Once an EMI is missed, borrowers are often reduced to a DPD (days-past-due) bucket and pushed through a standard sequence of messages, repeated calls, outsourced agents, and aggressive methods."

Lenders routinely prioritize call volumes over understanding why a borrower failed to pay, making recovery distressing, he added.

To curb such ...