As per the guidelines issued by the Reserve Bank of India (RBI), if an individual fails to repay the loan EMIs on time or defaults on the EMI payments, then the bank classifies the loan account of the individual as SMA (Special Mention Account) and NPA (Non-Performing Asset). The laws and guidelines relating to the classification of SMA and NPA issued by the RBI and other statutory authorities shall be binding on the borrower. 

Basic For classifiaction - Principle or Interest payment or any other

SMA 0 - if the borrower fails to repay the principal or the interest amount partially or fully for up to 30 days, then the loan account will be classified as SMA-0.

SMA 1 - if the borrower fails to repay the principal or the interest amount partially or fully between 31-60 days, then the loan account will be classified as SMA-1.

SMA 2 - if the borrower fails to repay the principal or the interest amount partially or fully between 61-90 days, then the loan account will be classified as SMA-2.

NPA - if the borrower fails to repay the principal or the interest amount partially or fully above 90 days, then the loan account will be classified as NPA .