What is a DPD in Your CIBIL Report?

DPD (Days Past Due) is an element in your CIBIL Report. It informs how you pay credit card bills and EMIs, and if you skipped any payments. DPD also depicts the days on which the payments were delayed. In case the DPD indication is not '000' or 'XXX', then it means that the payment was skipped. DPD information is available in the credit report under the ‘accounts’ section. In case you missed any payments, the section reveals by how many days and in which month you missed the same.

• In your CIBIL Report, DPD is mentioned in the ‘Payment History’ section. The DPD value is assigned against each of the credit products.
• The report reflects Days Past Due details up to the last 36 months of your payment history. If the DPD is ‘0’ for this duration, it means you have repaid the dues promptly.
• Thus, your creditworthiness is higher than those with a negative DPD value.

Like many other factors which influence a credit score, DPD is one of the most crucial ones as it talks about your repayment behavior. If this section shows too much of a default, then your credit score by CIBIL will get hampered. In this post, we will discuss DPD in your credit report and its features, DPD codes and values, illustration of DPD, the essentials of a CIBIL score and CIBIL report, how to fix errors in DPD, and FAQs.

Features of DPD in Your CIBIL Report

Here are the features of Days Past Due in a Credit Report:

• DPD (Days Past Due) depicts the number of days for which the account has been running irregularly. In other words, it is the time frame for which the account of the applicant has not been serviced with the installment, interest, or both.
• Every DPD arising in any of the loans by the applicant is shown in numbers and has a serious impact on the credit report of the borrower. The number shown in the DPD column depicts the number of days for which the account has stayed irregular.
• For example, if the DPD for a particular month is written as 60 in a report, it means the borrower has defaulted for 60 days in repayment of the particular installment. DPD can be seen in individual loans of the applicant/ borrower for the previous 36 months individually.
• The lender needs to be satisfied for the last reported month in the report as the last month depicts the current status of the account.

DPD Values and Their Importance in CIBIL Report

Various types of DPD values are discussed below:

• 000: This code depicts the timely payment of dues by the applicant for a particular month.
• XXX: This DPD value reflects that the data has not been provided by the lender to the concerned CIC. There is no issue with this code being reflected in the report as the data is missing and there is no fault on the part of the borrower.
• A Number Such As 30, 60, 90: Any DPD value showing a number corresponding to the particular month depicts the number of days for which the account has stayed irregular with the respective lender. This code makes an adverse impact on the CIBIL report of the applicant as the lender gets to know that the borrower does not furnish the installment on time and defaults in payment of interest, installment, or both.
• STD (Standard): This code reflects that the payment has been made within 90 days by the borrower. The account has been repaid by the borrower within 90 days and is now under the standard category.
• NPA (Non-Performing Asset): This DPD value depicts non-payment of dues within 90 days of default. The account has turned Non-Performing Asset due to non-payment of dues by 90 days.
• SUB (Sub-standard): This code reflects that the dues are paid after 90 days but before 12 months.
• DBT (Doubtful): This DPD value depicts payment of dues after 12 months.
• LSS (Loss): This code depicts the non-payment of the debt and the same has been considered a loss by the lender as there are no chances of repayment by the borrower.

Depending upon the time for which a particular debt remains unpaid, codes are reflected in the CIBIL report of the applicant, and depending upon these codes credit decisions are taken by the lenders. Apart from 000 and XXX, all other codes reflect default in repayment of the loan. Values are assigned depending upon the severity of default.

‘000’ in all of the code columns of the report depicts that the installment has been paid on time and there is lower risk involved in the loan proposal. The lender may reject the loan proposal if any of the codes other than 000, XXX, and STD are observed in the credit report.

Illustration of DPD in Credit Report

Here is an example about DPD:

• Suppose you have availed of a loan for which the repayment has started on 5th March 2021.
• Now, if you service the loan on time till 5th April 2021, the corresponding months shall be coded with 000.
• If you default the payment of April 2021, the DPD column of July 2021 shall be reflected with 31, which shall keep growing in numbers according to the number of days you delay paying the EMI.
• Now if no installment is paid afterward, the corresponding DPD value shall be reflected in the credit report.
• The months are reflected as MM/YY in the individual loans of the credit report.

Understanding a CIBIL Report and CIBIL Score

CIBIL report is the indicator of the financial discipline, defaults, and repayment history of a loan applicant. Every bank/ financial institution extracts a CIBIL report before considering any loan because through the report the bank gets to know the creditworthiness of the applicant. The majority of loan applications in India are rejected based on credit bureau reports (CIBIL Report).

Having a good score in the CIBIL report can increase the chances of getting a loan sanctioned as the lenders get sure about the past repayment of debt which creates a feeling of trust in the mind of the lender. Timely and regular repayment of loans ensures a better CIBIL score. Many banks charge interest rates based on the CIBIL Score of the applicant, hence having a better CIBIL score may benefit the applicant with cheaper credit.

A typical CIBIL report consists of basic details of the borrower such as name, address, etc., CIBIL Score along with the interpretation, summary of accounts including accounts showing past due, individual accounts with respective status for last 3 years and current status, payment history and recent inquiries by various institutions.

Steps to Follow If There Are Errors in DPD

Here are the steps you need to keep in mind if there are DPD errors:

• If the applicant feels that any of the loans is erroneously being reflected to have days past due value despite the installment having served on time, he/ she may report the same to the respective credit bureau through email.
• A copy of the account statement may be furnished along with the request letter for timely action by the credit bureau.
• After receiving the letter from the borrower, the credit bureau may approach the concerned bank for clarifications.
• The bank shall then look into the matter and check the DPD status of the account for the concerned month.
• If the appeal of the borrower is found appropriate, the same is reported back to the credit bureau which is then rectified in the report.
• The borrower after rectification of the report may approach the bank again for the credit facilities which shall be considered by the bank.

Frequently Asked Questions about DPD in CIBIL Report

Here are the CIBIL Report DPD FAQs: