DPD full form in banking is Days Past Due. It refers to the number of days a borrower has missed making a loan or credit card payment. When a customer fails to pay the EMI or outstanding amount by the due date, the bank starts counting the delay in terms of DPD. This is an important metric used by lenders to evaluate repayment behavior and determine creditworthiness.
What Is DPD in Banking?
DPD indicates how late a borrower is in clearing dues. For example, if a payment is delayed by 10 days, the DPD will appear as 10. If the payment is made on time, the DPD is shown as 000, which indicates excellent repayment discipline.
DPD records are directly reflected in the borrower’s credit report, affecting their overall credit health. Even a single missed payment can impact the credit score and future loan eligibility.
Types of DPD Status
1. 000 (No Delay)
Means the borrower has paid on time. This is ideal and improves the credit score.
2. XXX (No Reporting)
Some lenders use “XXX” when no new data is shared for that month.
3. Numerical DPD (1–90 Days)
Indicates the exact number of days the payment is overdue.
- 1–30 days: Minor delay
- 31–60 days: Moderate delay
- 61–90 days: High risk
If DPD goes beyond 90 days, the loan is considered NPA (Non-Performing Asset).
Impact of DPD on Credit Score
A higher DPD negatively affects your credit score because it shows irregular repayment behavior.
Consequences include:
- Lower chances of loan approval
- Higher interest rates on future credit
- Reduced credit card limits
- Negative remarks on the credit report
Even a single late payment can reduce the credit score significantly.
How to Maintain a Good DPD Record
- Pay EMIs and credit card bills before the due date
- Enable auto-debit for timely payments
- Monitor credit reports regularly
- Keep track of outstanding dues
Conclusion
Days Past Due (DPD) is a crucial indicator of financial discipline in the banking system. It reflects how promptly a borrower repays loans and credit card bills. Maintaining a clean DPD record not only boosts your credit score but also improves your chances of getting loans easily and at better interest rates.