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SUB (Sub-Standard) in CIBIL Report

Learn how the SUB status in your CIBIL report impacts your credit score and loan eligibility.

What is SUB in CIBIL Report

SUB in CIBIL report stands for ‘Sub-Standard’, a credit classification assigned to loan or credit accounts where payments are overdue by more than 90 days but less than 12 months. It indicates that the borrower has missed payments by over three months but has not yet reached the more severe Doubtful (DBT) status. In essence, SUB reflects a riskier credit behaviour where some payments may have been made recently, but there have been significant delays in repaying dues on time. This classification is part of the sub-classification system used by credit bureaus and lenders to gauge repayment patterns beyond simple on-time or late categorisations. The presence of SUB in your CIBIL report signals overdue payments but is less severe than Long-Standing Default or Loan Settled statuses. In the Indian context, lenders use this to assess risk before approving loans or credit facilities.

Will the SUB Remark Impact My Credit Score

Yes, having a SUB remark in the CIBIL report affects your credit score negatively because it reflects delayed payments and credit stress. A Sub-Standard classification highlights that repayments have been overdue for over 90 days, which lenders interpret as increased credit risk. While it does reduce your score, the impact is not as drastic as more severe classifications such as Doubtful (DBT) or Loan Settled Short (LSS). 

However, it definitely lowers your chances of loan approvals or results in higher interest rates if credit is granted. Timely correction through regular payments and reducing outstanding dues can gradually improve this score over time. In contrast, consistent on-time payments reflected by the Standard (STD) status help maintain a good CIBIL score. Higher Days Past Due (DPD) values as seen with SUB also weigh heavily during credit evaluation by banks and non-banking financial companies (NBFCs).

How to Mitigate the Impact of SUB in CIBIL Report

It is possible to mitigate the impact of SUB on your CIBIL score by taking proactive credit management steps. Here’s a closer look at the steps:

  • Clear Overdue Payments Immediately: Settle any overdue amounts to prevent further credit damage.

  • Avoid Further Delays: Ensure timely monthly payments to avoid escalating the SUB status.

  • Maintain Low Credit Utilisation: Keep your credit utilisation ratio under 30% to help improve your score.

  • Reduce Outstanding Debts: Pay off existing debts to show improved credit management.

  • Regularly Review Your CIBIL Report: Check for errors and dispute inaccuracies that might affect your score.

  • Limit Loan Applications: Avoid applying for multiple loans at once, as it can further damage your credit.

  • Communicate with Lenders: Work with lenders to restructure loans or negotiate payment plans if necessary.

  • Maintain Clean Credit Behaviour: Continue making timely payments to gradually offset the negative impact of SUB status.

How SUB Status Affects Future Loan Approvals

A SUB (Sub-Standard) status in your CIBIL report indicates overdue payments beyond 90 days but less than 12 months. This classification signals to lenders that you have experienced repayment difficulties, which can significantly affect your ability to secure future loans or credit facilities.

Understanding the implications of a SUB status is crucial, as it can lead to:

  • Increased Loan Rejection Risk: Lenders often view SUB status as a sign of repayment difficulties, leading to higher chances of loan or credit card application rejections.

  • Higher Interest Rates: Even if approved, loans may come with higher interest rates due to perceived risk.

  • Stricter Scrutiny: Applications may undergo more rigorous evaluation processes, delaying approval timelines.

  • Less Favorable Loan Terms: Approved loans might have less favorable terms, such as shorter tenures or lower amounts.

  • Long-term Credit Impact: A SUB status can remain on your credit report for up to 36 months, affecting future credit opportunities.

Why Does SUB Status Matter for Borrowers

The status of SUB in a CIBIL report matters because it provides a financial snapshot of your credit discipline. This status affects not only your immediate loan eligibility but also your long-term credit reputation. Lenders use this classification to decide your creditworthiness and loan pricing. Borrowers with SUB in their reports may face difficulties accessing unsecured credit or higher-priced loans. For salaried professionals and businesses alike, this can restrict cash flow options. Moreover, SUB is an early warning stage before more severe default categories set in, providing an opportunity to take corrective action. Understanding SUB status helps borrowers strategise repayments and avoid worsening credit conditions.

Conclusion

Having a SUB in a CIBIL report is a clear signal that payments have been delayed beyond 90 days. It impacts credit scores negatively and limits credit access or increases borrowing costs. However, it is not an irreversible condition. Timely repayments, disciplined credit behaviour, and managing outstanding debt effectively can mitigate the impact. Awareness of SUB status helps borrowers take proactive steps to restore their credit health and retain better lending options. By understanding key credit terms and their implications, Indian borrowers can ensure smoother personal and business financing journeys.

FAQs

Do SUB Impact My CIBIL Score?

Yes, SUB negatively impacts your credit score as it indicates overdue payments beyond 90 days. While it is less severe than Doubtful or Loan Settled statuses, it signals credit risk to lenders and reduces your creditworthiness.

The full form of SUB in CIBIL and banking context is ‘Sub-Standard’. It denotes accounts with payments overdue for more than 90 days but less than 12 months.

SUB 0 typically means there is no outstanding overdue amount in the Sub-Standard category; payments have recently caught up, or the account has moved out of the SUB classification.

In the CIBIL report, Sub or SUB refers to Sub-Standard, highlighting that payments have been delayed by over 90 days, signalling higher credit risk but better than Doubtful or Loss classification.

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