SMA-2

SMA-2 Definition: SMA-2 represents borrowers whose payments are overdue between 61 and 90 days. This is the high-alert, final warning stage before an account is legally classified as a Non-Performing Asset (NPA).

Why it matters in Debt Collection

• The final 30-day window for a lender to recover funds without aggressive capital provisioning.
• Automated legal warning notices (e.g., pre-arbitration) are usually dispatched during this bucket.
• Strict field recovery operations and intensive negotiations are standard industry practice at this stage.