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,
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.
A section of the credit report is dedicated to displaying the DPD Value. This is how a credit report is displayed:
DPD Value |
000 |
XXX |
30 |
60 |
Month |
1-20 |
2-20 |
3-20 |
4-20 |
Select lenders report these DPD values according to norms set by the RBI. Let us understand more about these values:
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.
You can take our personal loan for a variety of reasons.
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