If you ever miss an EMI, you'll start hearing words like DPD, SMA and NPA, and if things go further, "write-off" and "settlement". Here is what they mean, in order, and how each shows on your credit report.
DPD — days past due
The number of days a payment is late. Pay 12 days after the due date and that month shows DPD 12 (or a bucket like 1–30). DPD is the first sign lenders see, and even small DPDs can lower your score.
SMA — special mention account
The RBI asks lenders to flag early stress:
| Category | Overdue for |
|---|---|
| SMA-0 | Up to 30 days |
| SMA-1 | 31 to 60 days |
| SMA-2 | 61 to 90 days |
These buckets apply to loans to businesses and, broadly, retail loans too; lenders use them to start follow-up and restructuring talks.
NPA — non-performing asset
When interest or principal stays overdue for more than 90 days, the loan is generally classified as an NPA. It is then graded over time as substandard, doubtful and loss. An NPA is a serious negative on your report.
Written-off
The lender removes the loan from its books as unlikely to be recovered. This does not cancel your debt — the lender can still recover it — and the account shows as "written-off", which most lenders treat as a major red flag.
Settled
You and the lender agree that you pay less than the full amount and the lender closes the account. It ends the immediate pressure, but the account is reported as "settled", telling future lenders you didn't repay in full. This can hurt your chances for years.
Closed
The loan was repaid in full. This is the status you want for every account.
If you are struggling to pay
- Talk to your lender early, before payments are missed. Ask about restructuring, a lower EMI over a longer tenure, or a short moratorium if available.
- Prioritise secured and high-cost debts and keep at least the minimum due on cards.
- Avoid taking a new loan just to pay EMIs unless it genuinely consolidates costly debt into a cheaper one — see debt consolidation and getting out of a debt trap.
- If you settle, plan to close later. Some lenders let you pay the remaining dues later and update the status to closed; ask for that in writing.
- Know your rights. Recovery agents must follow the RBI's fair practices — no threats or harassment. See digital lending rules and your rights.
This guide is general information, not financial advice. Interest rates, fees, eligibility and other terms are set by each lender and can change; the figures in examples are illustrative only. Oxon Fintech is a loan facilitation platform, not a lender — loans are sanctioned and disbursed by our lending partners.