Understanding Your Loan Repayment Status

(Consumer Education Note as per RBI Master Direction, 19 Oct 2023)
 

1    Key Terms

• Due Date: The agreed date on which your EMI/interest must reach us. Pay on or before this date to stay current.

• Date of Overdue: The very next calendar day after the Due Date if the full amount has not been received/cleared. This marks Day 1 of your “days‑past‑due” (DPD) clock.

• Days Past Due (DPD): The running count of days from the Date of Overdue. Your DPD decides whether your account falls in SMA or NPA buckets.

• Day‑End Process: Our nightly system run (after all payment files and cheques for the day are posted). Your account’s bucket is evaluated only during this run.

2    SMA & NPA Buckets

• SMA‑0 (1–30 DPD): Early warning. No adverse bureau reporting yet, but please pay immediately to avoid charges.

• SMA‑1 (31–60 DPD): Higher risk stage; fresh disbursals or top‑ups may be restricted.

• SMA‑2 (61–90 DPD): Final warning before NPA; recovery calls intensify.

• NPA (≥ 91 DPD): Account reported to credit bureaus; legal recovery/enforcement may begin.

DPD is always counted from the Date of Overdue and assessed at the close of each business day (day‑end process).

3    How Upgradation Works

• From SMA to “Standard”: Pay the entire overdue amount (missed principal, interest, charges, taxes, etc.) before the nightly cut‑off; your account will return to “Standard” in that night’s day‑end run.

• From NPA to “Standard”: Pay all arrears plus any additional EMI(s) that became due since the NPA date; upgradation happens only in the next day‑end cycle after funds actually settle (cheques/ACH may take T+1 or T+2).

• Partial payments do NOT pause the DPD clock.
   

4    Illustrative Timeline

• 10 Jan: EMI due (₹10,000) — account “Standard”.

• 11 Jan: No payment received — DPD 1, bucket moves to SMA‑0.

• 25 Jan: Partial payment ₹6,000 — DPD 15, still SMA‑0 (clock keeps running).

• 11 Feb: No further payment — DPD 32, bucket moves to SMA‑1.

• 12 Mar: No payment — DPD 61, bucket moves to SMA‑2.

• 11 Apr: No payment — DPD 91, account becomes NPA.

• 15 Apr: Full arrears ₹14,000 paid; status remains NPA until funds settle.

• 16 Apr (day‑end): System sees nil arrears; account upgraded back to “Standard”.
   

5    How to Stay Current

• Clear any overdue amount at the earliest to prevent migration to higher risk buckets.

• If you anticipate difficulty, contact us before the Due Date to explore restructuring or a temporary moratorium.
   

6    Need Help?

• Email: support [at] kalpavittafin.in
  
  Disclaimer: This note is for consumer education only and summarises the RBI Master Direction — Reserve Bank of India (Prudential Norms on Income Recognition, Asset Classification and Provisioning) dated 19 October 2023. For full regulatory text, please refer to the RBI website.