When reviewing your CIBIL report, you might come across terms like STD, SMA, and SUB. Understanding these terms is crucial for managing your credit health and maintaining a good credit score.
In this context, STD stands for Standard. It indicates that you have made payments on time, within 90 days of the due date. This designation reflects positively on your credit report and signifies financial responsibility, making it an essential factor for loan approvals and favorable terms.
This blog delves into the meaning of STD in CIBIL, its role in financial assessment, and how it compares to other categories like SMA (Special Mention Account) and SUB (Sub-Standard). By the end, you’ll know how STD influences your credit score and what steps to take to maintain this favorable status.
More About STD in CIBIL
STD, or Standard, is a term used in CIBIL reports to indicate that loan or credit card payments are made on time or within 90 days of the due date. It reflects a borrower’s commitment to meeting repayment obligations and is a positive marker in credit reports.
STD Appears in CIBIL Reports
- The Days Past Due (DPD) section of the CIBIL report lists payment statuses for each credit account.
- STD typically appears under this section, alongside other terms like SMA (Special Mention Account), SUB (Sub-Standard), DBT (Doubtful), and LSS (Loss).
Categories in the DPD Section
Here’s how STD compares to other categories in the DPD section of a CIBIL report:
| Term | Meaning | Impact on Credit Score |
| STD | Payments made on time or within 90 days. | Positive, improves credit score. |
| SMA | Potential risk due to slight delays. | Neutral to negative, warrants caution. |
| SUB | Payments overdue by more than 90 days. | Significantly negative. |
| DBT | Doubtful accounts overdue for a year. | Severe negative impact. |
| LSS | Loss accounts deemed unrecoverable. | Highly detrimental. |
Impact of STD on Creditworthiness
The financial implications of living with an STD can significantly affect an individual’s creditworthiness, as potential income loss may lead to challenges in meeting financial obligations.
1. Positive Indicator:
- STD is a sign of timely payments, enhancing your credit profile.
- Lenders view accounts marked STD favorably when assessing loan applications.
2. Improves Loan Approval Chances:
A consistent STD status across accounts increases your chances of getting loans with lower interest rates.
3. Builds Financial Trust:
It demonstrates responsible financial behavior, which is crucial for maintaining long-term credit health.
STD vs SUB in CIBIL
The CIBIL report includes several categories like STD (Standard) and SUB (Sub-Standard), each reflecting different levels of repayment behavior. Understanding these terms helps borrowers and lenders assess financial health more accurately.
Key Differences Between STD and SUB
| Category | Meaning | Repayment Behavior | Impact on Creditworthiness |
| STD | Standard, payments made within 90 days. | On-time or slightly delayed (under 90 days). | Positive, enhances credit profile. |
| SUB | Sub-Standard, overdue for 90+ days. | Payments are severely delayed or defaulted. | Negative, raises red flags for lenders. |
Example Scenarios
1. STD Status:
- If you miss a payment by 30 days but settle it before the 90-day mark, your account remains in STD status.
- Lenders see this as acceptable, albeit not ideal, repayment behavior.
2. SUB Status:
- Missing payments for over 90 days places your account in the SUB category.
- This signals a higher risk of default, discouraging lenders from approving credit applications.
Is STD in CIBIL Good or Bad?
For borrowers, STD in CIBIL reports is a good status to maintain. It indicates that payments are either on time or delayed by less than 90 days, which is generally acceptable in the lending ecosystem.
Reasons Why STD is Good
1. Indicates Responsible Behavior:
- STD status reassures lenders that you are managing your financial obligations effectively.
- It positively impacts your credit score and overall creditworthiness.
2. Enables Favorable Loan Terms:
Borrowers with STD accounts are more likely to receive loans with lower interest rates and flexible repayment options.
3. Boosts Financial Opportunities:
A consistent STD status across accounts opens doors to premium credit products, such as high-limit credit cards.
When STD Could Be a Concern
While STD is largely positive, frequent delays nearing the 90-day limit can raise concerns:
- Pattern of Delays: Repeated delays, even within 90 days, may hint at cash flow issues.
- Cautionary Flag: Lenders may perceive borrowers nearing the SUB category as higher risk.
How to Maintain STD Status
- Timely Payments: Always pay EMIs and credit card bills before their due dates.
- Monitor Your Credit Report: Regularly check for discrepancies in your STD status and address errors immediately.
Steps to Maintain a Good STD Status in Your CIBIL Report
Maintaining a Standard (STD) status in your CIBIL report is essential for preserving a high credit score and ensuring easy access to credit. Here are actionable steps to help you keep this positive status:
1. Pay EMIs and Bills on Time
- Set Payment Reminders: Use alerts or automation to ensure timely payments.
- Partial Payments: If you’re unable to pay in full, make at least the minimum payment to avoid slipping into higher DPD values.
2. Monitor Your Credit Utilization Ratio
- Keep your credit card usage below 30% of the total limit to reduce financial strain.
- Example: If your credit limit is ₹1,00,000, limit your spending to ₹30,000.
3. Avoid Multiple Loan Applications
Applying for several loans or credit cards simultaneously can make you appear credit-hungry and impact your creditworthiness.
4. Regularly Check Your Credit Report
- Use platforms like CIBIL to review your credit report for inaccuracies in your STD status.
- Dispute any discrepancies immediately with your lender or CIBIL customer support.
5. Create an Emergency Fund
Build a financial cushion to cover at least three months of expenses, ensuring you can meet repayment obligations during unexpected situations.
6. Communicate with Lenders
If you anticipate payment delays, inform your lender in advance and negotiate revised terms. This can help prevent your account from moving to SUB or DBT status.
Conclusion
Understanding the STD’s full form in CIBIL and its implications is vital for managing your credit health effectively. The STD status, or Standard, signifies timely or slightly delayed payments (within 90 days) and is a positive indicator in your credit report.
Maintaining an STD status boosts your credit score, enhances your financial credibility, and ensures you remain eligible for loans and premium credit products with favorable terms. While STD is a good status, recurring delays nearing the 90-day mark can act as a cautionary flag for lenders.
By following disciplined financial habits—such as timely payments, monitoring your credit utilization ratio, and regularly reviewing your CIBIL report—you can maintain a strong credit profile and avoid falling into riskier categories like SUB or DBT.
Take control of your financial health today, and let your STD status in CIBIL pave the way for a secure and prosperous future!
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Frequently Asked Questions
Q. What does STD mean in CIBIL report?
A. STD in a CIBIL report stands for “Standard,” indicating regular accounts with no overdue payments.
Q. What is STD in banking?
A. In banking, STD refers to “Standard Assets,” representing loans or accounts that are performing well with no payment defaults.
Q. What is standard status in CIBIL?
A. Standard status in CIBIL means the credit account is being repaid on time without any overdue payments.
Q. What is SUB STD in CIBIL?
A. SUB STD refers to “Sub-Standard,” indicating accounts with payments overdue for more than 90 days, showing signs of financial stress.
Q. What is Standard CIBIL score?
A. There is no specific term “Standard CIBIL score”; a good CIBIL score generally ranges between 750 and 900, reflecting strong creditworthiness.
