Banks and financial institutions consider many factors while calculating the CIBIL score of the borrower. One of the most important parameters in a CIBIL report is DPD. The borrowers must know the DPD full form in banking sector. The full form of DPD is Days Past due in the banking field. This blog explains DPD and how it is used in the banks.

What is DPD?

DPD shows the days by which the borrower delays the loan payment. Lenders often use the formula of DPD to identify the behavior of the borrowers and their creditworthiness. The higher the DPD, the higher is the default from the side of the borrower.

Some terms related to DPD

Here are some terms related to DPD such as:

• STD: STD stands for standard payment. It means the payment was made within 90 days of the due date.

• DBT: DBT means stands for doubtful. It means the account is sub-standard for 1 year or more.

• SUB: SUB is standard-sub payment. It is a term used for payment done more than 90 days after the due date.

• LSS: LSS means loss. This term is used for the condition in which there is no chance of payment from the borrowers.

Why is DPD value important?

The borrowers must know DPD full form in banking to understand its role. DPD shows the payment behavior of the borrowers. It also shows the total payments missed by the borrower. DPD shows the number of days by which the borrower delays the loan payment.

Conclusion

This is a short blog on DPD full form in banking and how it affects the CIBIL score of the borrowers. DPD shows how genuine the borrower is in payment of the loan. It shows the financial conditions of the borrowers.