Till a few years back (I am not sure if they still do), banks and finance companies would use heavy-handed methods in order to collect debt. If you go back further in time when there was very little organized lending, farmers would be at the mercy of money lenders. I guess all this has migrated to loan apps with the added bonus of "nudes."

The problem is, desperate people will borrow from anyone under any terms. If it is not this, then it would be some local "moneylender" with muscle.

Edit: Some recent cases.

[1] Scared of humiliation over bank attachment notice, college student dies by suicide (https://indianexpress.com/article/cities/thiruvananthapuram/...)

[2] Pregnant woman crushed to death under tractor wheels by recovery agents, RBI bars Mahindra Finance from loan recovery through 3rd party agents (https://zeenews.india.com/personal-finance/pregnant-woman-cr...)