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Table of Content
1. What Is SMA in CIBIL? |
2. What Does SMA mean in the CIBIL Report? |
3. What Is NPA? |
4. What Is The Difference Between SMA and NPA? |
5. Does SMA Affect CIBIL Score? |
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Reviewed ByLast Updated: 21 June 2026
A credit report is pivotal for lenders to ascertain your creditworthiness. It entails various terms and classifications, among which the Special Mention Account (SMA) plays a significant role. Understanding SMA in CIBIL reports is essential for individuals or entities, as it helps to foster healthier credit profiles and ensures better financial stability. Hence, Urban Money offers a thorough overview of SMA reporting. Moreover, you can learn about its influence on your credit score and its association with non-performing assets (NPA). NPA is another critical term alongside SMA reporting in CIBIL. Let’s scroll down to learn more.
What Is SMA in CIBIL?
SMA in CIBIL refers to Special Mention Accounts. When a borrower starts making payments later than the due date, even if it’s just a few days late, the pertinent account is marked as SMA-0. This situation may also prompt a closer examination from the lending institution. Continuous delays can lead to the account being classified as SMA-1 or SMA-2. In other words, SMA reporting accounts indicate a sign of financial stress and are at risk of becoming NPAs. This further acts as an early alert system for banks and financial institutions, urging them to monitor these accounts more closely due to the risk of default. Notably, there are four different SMA categories, each determined by the duration the payment has been overdue.
- SMA-0: Payment overdue up to 30 days.
- SMA-1: Payment overdue between 31-60 days.
- SMA-2: Payment overdue between 61-90 days.
- SMA-NF: Accounts showing non-financial stress indicators.
What Does SMA mean in the CIBIL Report?
The SMA in the CIBIL Report serves as a warning sign for lenders. It signifies that the borrower is facing financial stress, which could lead to default. This classification signals lenders to pay close attention to such accounts and initiate early interventions to mitigate potential losses. For borrowers, being classified as SMA is a crucial alert for addressing their financial challenges quickly. So, borrowers should collaborate with their lenders to normalise their accounts and prevent further damage to their credit status.
What Is NPA?
NPA in the CIBIL Report stands for Non-Performing Asset. It denotes a loan (EMI) that remains unpaid for 90 days or more. This suggests that the asset has stopped generating income for the lender, indicating a more severe financial issue than SMA reporting. Thus, the NPA status impacts the borrower’s creditworthiness and signifies potential losses for the bank or lending institution, affecting its liquidity and profitability.
What Is The Difference Between SMA and NPA?
Let’s examine the difference between NPA and SMA in CIBIL:
| Features | SMA | NPA |
| Definition | SMA status is allocated to accounts with payments overdue for less than 90 days, signifying the initial stages of financial strain and the potential risk of default. | NPA status is assigned to accounts with overdue payments above 90 days, indicating a higher financial strain. |
| Classification Basis | ASMs are classified into three categories: SMA-0, SMA-1, and SMA-2, based on their overdue periods of 30, 60, and 90 days, respectively. | Payment is overdue for more than 90 days. |
| Purpose | Monitor and identify potential NPAs early, signalling borrowers and lenders to take preventive actions. | To classify loans has become a risk due to non-payment, indicating definite financial distress. |
Does SMA Affect CIBIL Score?
The Special Mention Account (SMA) status can significantly affect your CIBIL score. While the indiction of SMA-0 might not immediately impact your CIBIL Score, moving to SMA-1 or SMA-2 can cause a higher level of distress and risk, ultimately lowering your credit score. So, it’s prudent for borrowers to tackle such issues promptly to protect their credit health. Failing to do so can result in an NPA classification, further deteriorating the credit score.
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