Days past due (DPD)
DPD refers to the number of days a payment is overdue after its due date.
If your interest payment is due on the 7th of the month and is not made, the account becomes overdue from the 8th. On the 8th it is 1 day overdue, or 1 DPD. An account with 1 DPD is typically classified as a special mention account (SMA-0).
Special mention account (SMA)
An SMA is a loan account where payments are overdue but the loan has not yet become a non-performing asset. Accounts are classified based on how long the payment has been overdue.
| Classification | Overdue period |
|---|---|
| SMA-0 | Up to 30 days |
| SMA-1 | 31 to 60 days |
| SMA-2 | 61 to 90 days |
| NPA | More than 90 days |
For example, with a due date of 7 May: the account is SMA-0 from 8 May, SMA-1 after 30 days overdue, SMA-2 after 60 days, and an NPA after 90 days.
Non-performing asset (NPA)
An NPA is a loan where payment has been overdue for more than 90 days. If dues are not paid for 90 days from the due date, the loan is classified as an NPA. For a due date of 7 May 2024, the loan becomes an NPA on 6 August 2024.
SMA classification helps lenders track delays early and act before a loan turns into an NPA. An NPA classification indicates the loan is seriously overdue and may lead to further recovery action.