Asset classification

Special Mention Account (SMA) Classification

SMA Subcategories

Basis for classification – Principal or interest payment or any other amount wholly or partly overdue

SMA-0

Up to 30 days

SMA-1

More than 30 days and upto 60 days

SMA-2

More than 60 days and upto 90 days

Non Performing Asset (NPA0

More than 90 days

 

Tips to Borrowers

  1. Do not default make repayments on time

 

  1. Do not borrow more than your capacity to repay.

 

  1. Make allowances for all your essential expenses including existing borrowing obligations before you accept a new credit facility.

 

  1. Ensure the repayment Tenor is sufficient for you to comfortably repay the instalments and discharge your liability with out stress.

 

  1. Ensure the repayment frequency and /or the  .repayment dates are as per the cash flows available to you.

 

  1. Receipt of income shall coincide with the repayment obligation so that there is no stress in meeting your obligation.

 

  1. Use proceeds of the loan only for the purpose for which you borrowed and never divert the borrowed funds.

 

  1. Do not make too many enquiries for loans, it will adversely affect your credit score.

 

  1. Apply for credit only when you need it.

 

  1. Non payment/delayed payments making too many enquiries for credit will adversely affect your credit score.

 

  1. Monitor your credit score regularly

 

  1. Defaults will make it impossible or difficult for you to borrow again.

 

  1. Poor credit history may also result in your borrowing costs being higher.

 

  1. Go through and sanction letter, terms and conditions and the Key fact Statement carefully before signing up.

 

In case of any difficulty in repayment do not avoid but approach us for a mutually acceptable resolution