The “Days Past Due or DPD” in a CIBIL report is known as the number of days exceeding the due date as the borrower misses the EMI. An education loan is the primary financial support for pursuing a course abroad. The credit report is one of the primary factors considered by the banks while processing the loan application. DPD directly influences credit scores on the report. A late payment cibil score might be around 500 or below in some cases.
Understanding the Days Past Due for students is very important as it may impact your education loan approval negatively and the loan may get rejected if there are multiple late payments. The banks run the enquiry for CIBIL report or credit report to check the repayment behaviour and credit utilising habit of the borrower. Let’s understand DPD meaning in banking in detail along with its full form, types, method of calculation and how it impacts our loan processing.
Table of Contents
- What is Days Past Due in CIBIL Reports?
- What is the Full Form of DPD?
- What are the Types of DPD?
- How DPD in Credit Report Impact Your Education Loan?
- How to Avoid Negative DPD in Credit Reports?
- How to Calculate Days Past Due in Banking?
- How to Find Days Past Due in the CIBIL Report?
- How to Report Discrepancy in DPD?
- FAQ
What is Days Past Due in CIBIL Reports?
DPD or Days Past Due in your credit report shows the duration of the delay in making the repayment after missed EMI. If there is one or more DPDs in the CIBIL report, then it may impact the education loan approval. However, it also depends upon the type of DPD in CIBIL which reflects how the bank or lender is considering it.
Let’s understand with the help of an example: Akash took an education loan from ABC Bank. The repayment has started and the date of the EMI deduction is the 10th of every month. The account from which the EMI was supposed to be deducted was not funded and it bounced due to insufficient funds.
Now, the bank sends reminder calls and messages to Akash to pay the EMI with penalties. Akash paid the EMI on the 18th of that month. This difference of 8 days is called DPD (full form: Days Past Due).
DPD Meaning in Banking
DPD in banking simply indicates the number of days by which the borrower has missed paying the loan EMI. Not only loans but the DPD will be reflected for all types of repayments such as home loan EMI, credit card bills, personal loan EMI etc. It is advisable to pay all the EMI on time so that any type of education loan defaulter legal actions can be avoided.
What is the Full Form of DPD?
The full form of DPD is ‘Days Past Due’. The name itself indicates the meaning that it is the number of days the borrower missed to pay the loan EMI or credit card bill. DPD full form in banking is an important factor as knowing it will help loan borrower in planning their EMI payments on time. It indicates the repayment discipline that the borrower has maintained throughout the loan. The days past due (DPD full form in finance) show the borrower’s payment timeline for the last 36 months or 3 years. When you apply for a loan, the bank/lender checks in your report whether you have missed the EMI of previous loans. If the DPD in your CIBIL report is ‘000’ for all 36 months, this means that there are no dues and you have always made timely repayments.
In case you have missed your EMIs once or twice, it will be negative but the lender may consider approving the loan. If you are facing any problem in repaying the loan then immediately contact the lender and apply for an education loan restructure because maintaining a low days past due (DPD full form in loan) is crucial for maintaining a healthy credit profile.
What are the Types of DPD?
The credit report shows different types of DPD in CIBIL depending on the repayment made by the borrower. The DPD value is based on the delayed repayment of a certain period. Let’s understand the types of DPD values shown in the credit report in the table given below:
| DPD Value | Meaning | Impact on Credit Score |
| XXX | Capable of repaying on time/all payments have been made on time/bank’s failure to update the payment | Positive |
| 000 | No outstanding payment is left for the loan or credit card | Positive |
| STD | Dues are less than 90 days | Negative |
| SUB | The account was NPA for less than 12 months | Worse |
| DBT | The account was NPA for 12 months | Worse |
| LSS | Loss Identified and the lender has lost hope of repayment | Worse |
How DPD in Credit Report Impact Your Education Loan?
When you apply for an education loan, the first thing the bank will do is to pull out your credit report and check it thoroughly. If the bank finds a negative DPD like STD or SUB status, your loan may get rejected. Based on the credit history, the banks decide education loan amount. Even if your overall credit score is good but there are negative DPDs, your loan will be straightaway rejected. The banks and financial institutions take this thing very seriously while approving the loan. Once they sense high risk, they won’t approve the loan.
30 Days Past Due in Credit Report
A delay in loan repayment always impacts your credit score negatively. The bank or the financial institution from where you have taken the loan reports even the shortest delay to the credit information companies or the credit bureau. If there is 30 days past due in your credit report, your loan might get rejected as it will be a risk indicator for the lender and they will consider that your repayment behaviour is not good. As a responsible borrower, you should always focus on how to increase the CIBIL score.
60 Days Past Due in Credit Report
60 days past due in credit report acts as a high risk indicator. This means that you have missed paying the EMI for 2 months or more and your loan account was treated as a SSA (sub standard asset). This may be the worst case for your credit history as you will find it very difficult to get fresh loans in future. It will also create hindrance if you apply for education loan refinance or restructure.
Also Read: Loan rejected despite having good credit score? Check this blog and understand why your education loan got rejected even if your credit score is good
How to Avoid Negative DPD in Credit Reports?
A negative DPD in credit score will close the doors for all future loans. It is very important to understand how to avoid any single negative DPD in the report. Check some of the major guidelines below that will help you avoid negative DPD in your credit report:
- Always repay your bills and EMIs on time without any delay
- Keep the bank account funded 4-5 days prior to the date of the EMI deduction
- Avoid utilising the maximum limit of credit cards as it will increase the burden due to which you may delay the repayment.
- Choose a safe date for EMI deduction at the time of getting the loan. Make sure that your salary or any other payment gets credited before that date so that you won’t face a lack of funds.
How to Calculate Days Past Due in Banking?
DPD or Days Past Due is calculated by finding the difference between the date of the EMI deduction and the date on which the borrower paid the missed EMI. The amount overdue in the Cibil report is a negative sign for both the borrower and the lender. Check the details of the calculation below:
Formula to Calculate DPD
The formula to calculate DPD directly depends on the due date and selected payment date, i.e.:
DPD = Payment Date – Due Date
For example, the EMI is scheduled to be deducted every month on the 5th. For some reason, the borrower failed to keep the account funded and EMI bounced. The borrower paid the EMI on the 26th of that month. Here, the DPD will be 26 days – 5 days = 21 days.
Here, there is a difference between the EMI deduction date and the date on which payment was made is 21 days. Hence, the DPD will be 21 days.
Also Read: Always stay informed about the regulations set by RBI. Check this blog and know the latest RBI regulations on Credit Reports to Credit Information Companies.
How to Find Days Past Due in the CIBIL Report?
You can find the DPD in your credit report by checking the ‘payment history’ section. DPD will be mentioned separately for each credit account. Check the steps mentioned below to check DPD in the credit report:
- Download your CIBIL report from authorised portals like ET Money, WishFin etc, Paytm etc
- Check the credit or loan accounts
- Go through the ‘Payment History’ section
- For all the timely repayments, you will see ‘0’ marked in green colour
Payment History with DPD value ‘0’
How to Report Discrepancy in DPD?
Sometimes you may notice a discrepancy in your credit report regarding the DPD value. This happens because sometimes there is a delay in updating the status of the report of a borrower. You may notice that you have made the payment on time but it does not show ‘000’ as the DPD.
Immediately report the error to the credit bureau explaining the entire case. Check more details below:
- If it has been marked negative, it will appear in deep orange or red colour
- Check the same and match it with your EMI payment date
- If there is a discrepancy, immediately report to the bureau mentioning the name of the lender, loan account number and transaction ID
Payment History with negative DPD value
- The credit bureau will mark that account as ‘under dispute’
- A proper verification will be made involving the bank or the lender and the borrower
- If its a discrepancy, the bureau will update the same and it will start reflecting as ‘000’
- If your credit score has dropped due to discrepancies, the same will be updated along with the DPD value
FAQ
Days Past Due is the total number of days that indicates the delay in loan repayment (if any). It shows the difference between the actual date of payment and the auto-debit EMI date which was missed by the borrower due to insufficient funds in the bank account.
In Finance, the full form of DPD is days past due. The days past due is reported monthly in the CIBIL report. It impacts the CIBIL score directly and is inversely proportional to the credit score.
You cannot remove DPD from your credit report directly. It will show the history for the last 36 months and the DPD will appear in the payment history section, thus impacting your education loan.
It is difficult to get any kind of loan approved if there is a negative DPD in CIBIL. The lenders consider it as a high risk and reject the loan application.
Timely repayments, low credit card use and a lesser number of enquiries are some of the major ways to improve your credit score. Maintaining a low DPD is the key as a high DPD will lead to a negative credit score.
In case you find any type of discrepancy marked in your credit report, immediately report the same to the credit bureau. In the report, mention your loan account number, name of the lender, payment details etc and explain the case in brief.
DPD is calculated by subtracting the payment date from the due date. The formula to calculate DPD is “DPD = Payment Date – Due Date”.
DPD(full form: Days past due) is important because it speaks about a borrower’s creditworthiness and financial discipline. Banks use the DPD to check requirements on whether to sanction a loan or not.
This was all about understanding the DPD or Days Past Due in the CIBIL report. Always make your EMI payments and credit card bills on time so that your credit score remains good.
To know more about Days Past Due in CIBIL Report, credit reports, the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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