Missed EMI? Your Loan Becomes 'SMA' - Understand Special Mention Accounts and Their Impact
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Moneycontrol•11-01-2026, 19:32
Missed EMI? Your Loan Becomes 'SMA' - Understand Special Mention Accounts and Their Impact
- •Missing an EMI categorizes your loan as a Special Mention Account (SMA) by banks, signaling payment delays.
- •The RBI classifies SMA into three stages: SMA-0 (0-30 days delay), SMA-1 (31-60 days delay), and SMA-2 (61-90 days delay).
- •Beyond 90 days of non-payment, an account is declared an NPA (Non-Performing Asset).
- •SMA classification negatively impacts your credit score and future loan eligibility, as banks view you as high-risk.
- •Preventive measures include informing the bank, using auto-debit, maintaining an emergency fund, and judiciously using credit.
Why It Matters: Missing EMIs leads to SMA classification, damaging credit scores and future loan prospects, emphasizing timely payments.
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