What is Days Past Due (DPD)
in CIBIL Report?

Borrowers are required to honour monthly EMI payments on time to ensure that it does not leave a blot on their credit report. A healthy credit report goes a long way in your loan being approved at competitive rates of interest. Your credit report contains different aspects that include your credit score, credit report, DPD etc. Your DPD is one of the determining factors in whether your loan will be approved or rejected. You can log into the TransUnion website and avail a copy of your credit report and check your CIBIL score.

This leads us to the next question,

What is Days Past Due (DPD)?

Days Past Due or DPD is one of the important components of your credit report indicating your financial history. It indicates whether you have been consistent in your repayments and if you have missed any, how many instalments you have missed and by how many days. It also reflects your credit card repayment history. The applicant receives a separate DPD that is generated in their name against each borrowing from the market. If the lender happens to default on repaying even a single instalment, the DPD will remain on your report for the following three years.

How Can a Credit Report help in Checking one's DPD Value?

A section of the credit report is dedicated to displaying the DPD Value. This is how a credit report is displayed:

• 000: A score of 000 reflects that all your dues have been honoured for January 2020 and that you do not owe the lender any payments for the month. Honouring your debts on time helps in maintaining a favourable financial position and helps in instilling confidence in lenders that they are capable of repaying loans on time. 
• XXX: This value states that the report is not yet submitted by the lender to CIBIL and is considered to be a safe value.
• 30: Any number like 30, 60 refer to the number of days that the loan has been defaulted for. This number can harm your credit score and consequently impact your ability to borrow funds at reasonable rates of interest. 

Select lenders report these DPD values according to norms set by the RBI. Let us understand more about these values:

• STD: STD is known as a Standard Payment and simply means that the payment has been made within 90 days. 
• NPA: EMIs not honoured within 90 days of it being due for payment are referred to as Non-Performing Assets. 
• SUB: Payments not honoured by the applicant on time for up to 12 months are referred to as sub-standard payments. In these situations, it is assumed that the applicant is likely to repay the amount borrowed. However, based on their track record, companies will consider lending funds to them a risky proposition and hence they might experience difficulty in availing credit.
• LSS: This term means that banks have lost hopes of repayment from the client. 
• DBT: This means that the borrower has not been repaying the EMIs for more than 12 months, however, there is a strong possibility that the applicant will repay the funds borrowed. 

It is also important to monitor your credit report regularly, especially when you are trying to build up your eligibility to apply for a personal loan. Moreover, it is important to repay EMIs on time and maintain a healthy credit score to good financial health in the long run.

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