Solfin Sustainable Finance Private Limited
OVERDUE, SMA AND NPAAt Solfin Sustainable Finance Private Limited, we believe in complete transparency with our borrowers. This page explains how your loan account is monitored and classified in case of payment delays, in line with Reserve Bank of India guidelines.
What does "Overdue" mean?
A loan amount — whether principal, interest, or any other charge — becomes "overdue" if it is not paid in full on or before the due date. The due date is the date on which your EMI or any other payment is scheduled.
How are overdue accounts classified?
Based on the number of days your payment has remained unpaid (called "Days Past Due" or DPD), your account is classified at the end of each day as follows:
| Days Past Due (DPD) | Classification |
|---|---|
| 1 – 30 days | SMA-0 |
| 31 – 60 days | SMA-1 |
| 61 – 90 days | SMA-2 |
| More than 90 days | NPA |
SMA stands for Special Mention Account — an early warning category flagging accounts that show signs of stress.
NPA stands for Non-Performing Asset — an account where payment has been overdue for more than 90 days.
When is the classification applied?
Classification happens during the "day-end process" of each calendar date. This means the status of your account at the end of a given day reflects whether your payment was received by the close of that day.
Example
If the Due Date of a loan account is March 31, 2021, and full dues are not received before the day-end process for this date, the date of overdue shall be March 31, 2021, then the loan account shall be tagged as SMA-0.
If it continues to remain overdue, then this account shall get tagged as SMA-1 upon running day-end process on April 30, 2021, i.e. upon completion of 30 days of being continuously overdue. Accordingly, the date of SMA-1 classification for that account shall be April 30, 2021.
Similarly, if the account continues to remain overdue, it shall get tagged as SMA-2 upon running day-end process on May 30, 2021, and if continues to remain overdue further, it shall get classified as NPA upon running day-end process on June 29, 2021.
NPAs may be upgraded as "Standard" asset only if entire arrears of interest and principal are received from the borrower i.e., when DPD becomes 0.
Last updated: 6 October 2026