Will NPA Affect Credit Score?

Yes, having a Non-Performing Asset (NPA) can significantly affect your credit score. Here’s why:

NPA indicates missed payments: An NPA is a loan where the borrower has missed payments for a certain period. This signals to lenders that you may not be reliable in repaying debts.
Reported to credit bureaus: When a loan becomes an NPA, the bank is likely to report it to credit bureaus like CIBIL in India. This negative information is then reflected in your credit report.
Credit score drop: An NPA can cause a substantial drop in your credit score, sometimes by 75 to 100 points or more.
Overall, an NPA can make it difficult to access credit in the future, as lenders will be hesitant to offer loans to someone with a poor credit history.

READ MORE……Finlender

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