What Does DPD Mean in CIBIL Report?

Your CIBIL report is like a financial passport that determines your credibility as a borrower. Whether you’re applying for a home loan, personal loan, or even a credit card, lenders will carefully review your CIBIL report before making a decision. Among the many factors that influence your creditworthiness, DPD (Days Past Due) plays a crucial role.

Have you ever checked your CIBIL report and noticed values like XXX, 000, STD, SUB, DBT, or LSS under the DPD column? If these terms seem confusing, don’t worry. In this blog, we’ll break down what DPD means, how it impacts your CIBIL score, and how you can improve it for a healthier credit profile.

What is DPD Full Form and Meaning?

DPD stands for Days Past Due. It indicates the number of days you have delayed in making a credit payment. Lenders use this to assess how consistently you repay your debts. Here’s what different DPD values in your CIBIL report mean:

• XXX as DPD value: Indicates a safe value, revealing a failure on the part of the bank or lender to update data.
• 000 as DPD value: Another secure value, denoting no outstanding payments left.
• STD as DPD value: Reflects that dues are pending for less than 90 days. It's generally considered negative but not as severe as other categories.

Note: Any DPD value other than XXX or 000 is seen negatively. While STD (up to 90 days) is less severe, anything beyond that indicates a more critical situation. Banks often categorise anything overdue by more than 90 days as NPA (Non-Performing Assets).

• SUB as DPD value: Represents an account that has remained at the NPA stage for less than 12 months.
• DBT as DPD value: Indicates an account that has remained in the SUB (sub-standard) category for a duration of 12 months.
• LSS as DPD value: Points to an account where a loss has been identified and is no longer considered collectable. It is a critical stage where the account has incurred irrecoverable losses.

How is DPD Calculated?

DPD is calculated based on the number of days a borrower has missed a payment deadline. It is updated every month by banks and financial institutions. If you consistently pay your dues on time, your DPD will reflect ‘000’ or ‘XXX’—indicating good credit behaviour.

Example of DPD Calculation:

• Let’s say your credit card payment is due on 10th March, but you fail to pay by that date.
• If you clear the payment on 20th March, your DPD for March will be 10 (days past due).
• If you make the payment in April, your DPD for March will be 30 (since it’s overdue for a full month).

If you continue to delay, the DPD will keep increasing, negatively impacting your credit profile.

Does DPD in CIBIL Affect Your CIBIL Score?

Yes, DPD directly affects your CIBIL score. A high DPD indicates poor credit behaviour, making lenders hesitant to approve your loan applications. Here’s how:

1. Frequent late payments reduce your credit score.
2. A DPD over 90 days can classify your account as an NPA, leading to loan rejection.
3. Lenders consider DPD while evaluating risk—even one late payment can lead to higher interest rates.

A consistently low DPD (000 or XXX) shows financial discipline and improves your chances of getting better loan offers.

How to Improve Your CIBIL Score with High DPD

If your DPD is high, don’t panic—there are ways to fix it:

1. Clear Outstanding Dues: Pay all your pending EMIs, credit card bills, and loan payments as soon as possible.
2. Make Timely Payments: Always pay at least the minimum amount due on your credit card to avoid negative DPD.
3. Avoid Multiple Loan Applications: Too many loan inquiries can make lenders see you as a risky borrower.
4. Negotiate with Lenders: If you’ve missed payments due to financial hardships, request your lender for a settlement or restructuring plan.
5. Maintain a Good Credit Mix: A healthy balance of secured (home loans) and unsecured (credit cards, personal loans) credit helps in maintaining a strong credit profile.
6. Check Your CIBIL Report Regularly: Keep an eye on errors or outdated DPD values and dispute incorrect data with CIBIL.