What "overdue" means
An amount is overdue if it is not paid on the due date fixed by the Company. Classification is done as part of the day-end process for the relevant date; the classification date is the calendar date for which that process is run. An account that is overdue by even one day is treated as overdue.
Classification bands
| Category | Basis for classification |
|---|---|
| SMA-0 | Overdue up to 30 days |
| SMA-1 | Overdue more than 30 days and up to 60 days |
| SMA-2 | Overdue more than 60 days and up to 90 days |
| NPA | Overdue more than 90 days |
Special Mention Account (SMA) categories are an early-warning classification of accounts showing signs of stress. A loan becomes a Non-Performing Asset (NPA) when it remains overdue for more than 90 days.
Worked example
Suppose a loan has a due date of 31 March and nothing is paid on or after that date:
| Date | Position | Classification |
|---|---|---|
| 31 March | Due date. Amount not received by the end of the day-end process | Overdue; SMA-0 from 31 March |
| 30 April | Continuously overdue for 30 days | SMA-1 at day-end on 30 April |
| 30 May | Continuously overdue for 60 days | SMA-2 at day-end on 30 May |
| 29 June | Continuously overdue for 90 days | NPA at day-end on 29 June |
Upgrading an account
An account classified as NPA is upgraded to "standard" only when the entire arrears of interest and principal have been paid by the borrower. Partial payment that reduces the overdue amount does not by itself change the classification.
Why it matters to you
Overdue status is reported to credit bureaus and affects your credit score; penal charges (₹500 per month on default (excluding GST)) apply from the first day of default. If you expect difficulty paying on the due date, contact us before it at +91 93114 80935 or support@golufin.com.