Archive · 7 Jan 2026
SMA in a credit report: Meaning and impact on your credit score
When you miss a loan payment or credit card bill, the bank doesn't immediately call it a bad loan.
Instead, they label it as a Special Mention Account (SMA) in your credit report.
There are three stages of SMA: SMA-0 for 1-30 days overdue, SMA-1 for 31-60 days, and SMA-2 for 61-90 days.
If you don't pay after 90 days, it becomes a non-performing asset (NPA).
SMA affects your credit score, and if you have multiple SMAs, it can hurt your chances of getting new loans or credit cards.
To avoid this, set up automatic payments and check your credit report regularly.
SMA is a classification for overdue loan or credit card payments, serving as an early warning for potential defaults.
There are three stages of SMA (SMA-0, SMA-1, SMA-2) before an account is classified as an NPA.
SMA adversely impacts an individual's credit score, with the impact increasing as the account progresses through the stages.
The presence of SMA or NPA in a credit report can influence a bank's decision on new credit applications.
Individuals can avoid SMA classification by automating payments and regularly checking their credit reports.
- Who
- Individuals with overdue loan EMIs or credit card payments.
- What
- Special Mention Account (SMA) classification in credit reports.
- When
- When loan EMIs or credit card payments are overdue for 1 to 90 days.
- Where
- In the individual's credit report as reported by banks to Credit Information Companies (CICs).
- Why
- To serve as an early warning signal for potential borrower stress and to help banks monitor and prevent accounts from turning into NPAs.
- Definition
- Special Mention Account (SMA) is a classification for loan or credit card accounts where payments are overdue but not yet classified as non-performing assets (NPAs).
- Stages
- SMA-0 (1-30 days overdue), SMA-1 (31-60 days overdue), SMA-2 (61-90 days overdue), NPA (over 90 days overdue).
- Impact on Credit Score
- Adverse impact increases as the account progresses from SMA-0 to NPA.
- Impact on New Credit Applications
- Presence of SMA or NPA can influence bank's decision on new credit applications.
- Prevention
- Automate payments and regularly check credit reports to avoid SMA classification.