Learn / Regulation
SMA-0, SMA-1 and SMA-2 explained with a worked example
SMA stands for special mention account. It is the label a lender gives an account that is overdue but not yet an NPA. There are three levels, and they line up with the DPD bands every risk team already tracks.
The three categories
| Category | Non-revolving loans (overdue) | Revolving facilities (CC/OD) |
|---|---|---|
| SMA-0 | Up to 30 days | Not used |
| SMA-1 | More than 30 and up to 60 days | Balance above limit or drawing power for more than 30 and up to 60 days |
| SMA-2 | More than 60 and up to 90 days | Balance above limit or drawing power for more than 60 and up to 90 days |
After 90 days the account is NPA. SMA-0 means one day overdue or more, so a loan with DPD 0 is simply standard.
A dated example
| 6 Jan | DPD 1, SMA-0 |
| 4 Feb | DPD 30, still SMA-0 |
| 5 Feb | DPD 31, SMA-1 |
| 7 Mar | DPD 61, SMA-2 |
| 5 Apr | DPD 90, still SMA-2 |
| 6 Apr | DPD 91, NPA |
The 5 February instalment also falls due while the first is still open. It does not start a second clock. DPD runs from the oldest unpaid due date.
How this maps to your buckets
SMA-0, SMA-1 and SMA-2 line up with the 1-30, 31-60 and 61-90 buckets. The lines differ in one place: a bucket table often has a 'current' band and a '90+' band, while SMA only starts at day 1 and stops at day 90. Check how your own bucket treats DPD 30, 60 and 90 so the two reports agree.
Why it matters beyond reporting
- Early-warning trigger for collections and restructuring decisions.
- Lenders report SMA status to the central repository of large credits for larger exposures, and the SMA rules apply to all loans including retail. Confirm the current thresholds for your lender type.
- Roll rates between SMA bands are the quickest signal of where NPAs will come from.
Try it on your own tables
The free tools give you the prompt, the checks and how to present the result. You enter table names only.
See the free toolsFrequently asked questions
What is SMA-0?
The first special mention category: principal, interest or another amount is overdue for up to 30 days on a non-revolving loan.
What is the difference between SMA-1 and SMA-2?
SMA-1 covers more than 30 and up to 60 days overdue. SMA-2 covers more than 60 and up to 90 days. After that the account is an NPA.
Is SMA the same as an NPA?
No. SMA is an early-warning category for accounts that are overdue but have not crossed 90 days. An NPA starts after 90 days.
Keep reading
NPA classification: the 90-day rule and the asset categories
When does a loan become an NPA? The 90-day rule, how term loans and cash credit differ, the asset categories, and what it takes to upgrade an account.
BasicsDelinquency buckets: 1-30, 31-60, 61-90 and 90+ explained
What delinquency buckets are, how DPD maps to them, how they link to RBI's SMA categories and Ind AS 109 stages, and how to report them.