If your brother has nothing to pay then what is the point he has to go for the insolvency and file insolvency petition in the court so that he can be declared insolvent in any case unsecured loan can be recovered from the property of him only after the order of the court and in case there is no property listed in his name the property of any other person cannot be attached to his loan account so you didn't that to worry about but of course you have to approach to the code for the insolvency procedure

1) if NBFC has no collateral security and your brother does not own any property it would find it difficult to recover the loan 

2) they would after taking legal proceedings against brother settle if they do not find any chances of recovering loan amount with interest 

Your brother can file Insolvency Petition (IP) at a district court where he residing. File an insolvency petition showing reasons for default in clearing off debts and show increasing of liabilities after the loss of business along with an interim application for stay of arrest/civil imprisonment till the adjudication of the insolvency petition. Contact a local lawyer and take his help for further process.

- As per the RBI , the  bank should give proper time and offers for the settlement of loan amount.,  on the ground of health and sudden loss 

- If , the bank is not agree to give time, then dont worry and let them to start legal action against your brother.

- FIrstly, the bank will issue demand notice prior to take legal action from the court . He should reply the same after narrating the whole story of business failure.

- Even, if the bank filed a case before the Court , your brother will have much time to repay the said loan amount and to settle the matter according his present situation.

- If bank official/people are harassing , then he should do the following for his safeguard.

1. He should lodged his complaint at the police station for harassing & threatening , as law not permits anybody to take the law in his hand. If police refuse , then he can approch the magisterate for the same.

2. He can file an injunction case againt the nbfc bank and its recovery agents for the direction of not visiting the house or office for the recovery of dues amount of loan.

3. He can file a complaint with the RBI .

Dont worry , In this way , the bank will itself try to settle the dispute with your brother. 

- Further , since you brother has no property or service, hence there is nothing for attatchment. 

Yes you can approach me through kanoon i can assist you in the same

See your brother can contact concerned bank legal department and officer along with his lawyer and can offer OTS it's on bank to accept or reject same as they can proceed against him and guarantors to recover the amount.

Kindly approach RBI ombudsmen for making settlement for low EMI per month.

Wait for some time, recovery agent will offer OTS. Only thing make sure, whatever final figure after reduction offer for settlement shall be final and it should be on company letter head. Due office order, verbal commitment by even general manager has no relevance. 

Dear

If you want them to go for settlement then your brother should not approach them for settlement.

Let them go for recovery suit against your brother if your brother doesn't have any property on his name then they cannot get attachment order.

Or your brother can file petition to declare his self as insolvent so that creditors have to settle with assets your brother currently owned. 

The NBFCs will recover the amount as per the provisions of law.

If he is not having money to repay the NBFC will follow the due procedure of law for recovery because they have granted the loan based on certain documentary evidences hence the applicable law will be enforced.