What it means
RBI asks lenders to spot stress early. For term loans the classes are:
| Class | Principal or interest overdue for |
|---|---|
| SMA-0 | up to 30 days |
| SMA-1 | more than 30 and up to 60 days |
| SMA-2 | more than 60 and up to 90 days |
After 90 days the account is an NPA. The status is set at the day-end process on each date, so a payment received after day-end does not change that day’s class.
Example
An NBFC’s business loan to Shree Lakshmi Hardware has an instalment of ₹42,000 due on 5 Jul 2026, and it is not paid.
| Date (day-end) | Class |
|---|---|
| 5 Jul 2026 | SMA-0 |
| 4 Aug 2026 | SMA-1 |
| 3 Sep 2026 | SMA-2 |
| 3 Oct 2026 | NPA |
Paying all dues on 10 Aug returns the loan to standard straight away.
Common mistakes
- Treating SMA-0 as “nothing to see” and calling only at SMA-2.
- Counting days from the next month instead of from the due date.
- Clearing only the oldest instalment and thinking the class resets.
In MyRecords
The loans board in the Lending module shows each loan’s RBI class, SMA-0 to SMA-2 and NPA, from day ranges you set per company, and a nightly run keeps the days past due current. Collections lists loans with dues worst first, so calls start with the right accounts.