What is SMA in credit report and how does it affect the score?

Updated: 09-01-2026, 04.20 AM

What is the news?

It is very important to pay loan EMIs and credit card bills on time, because this keeps the credit score of the person good. While determining credit score, banks pay maximum attention to payment habits. If a person does not pay EMI or card bill on time, the bank considers it negligent. In this situation, the account is put in a different category, due to which it may become difficult to take a loan in future.

What is SMA?

When a person does not make loan or credit card payment on time, the bank does not immediately consider it as a bad loan. According to the rules of Reserve Bank of India (RBI), such accounts are called Special Mention Account (SMA). EMIs late by 1 to 30 days are considered SMA-0, 31 to 60 days are considered SMA-1 and 61 to 90 days are considered SMA-2. After 90 days the account becomes NPA.

What effect does SMA have on credit score?

When an account goes into SMA, it directly impacts the credit score. The longer your payment is delayed, the more your score will drop. The loss increases from SMA-0 to SMA-2 and then to NPA. If more than one account is in SMA, the bank considers it a serious financial problem. When NPA becomes NPA, the score goes down significantly and trust is broken.

How to avoid SMA and what to do?

Making timely payments is the easiest way to avoid SMA. Keep auto-debit facility on for EMI and credit card bills. Be sure to check your credit report every month so that mistakes can be caught quickly. If you notice any outstanding, pay it immediately. By making timely corrections the account can be saved from becoming NPA. By taking a little care, the credit score remains safe and it becomes easier to get a loan in future.