Non Performing Loans

There is no global standard to define non performing laons at the practical level. Variations exist in terms of classification system, the scope and contents.

Non performing loan is a loan that is in defalut or close to being in defalut. Loan become non perfomring after it being in defalut for three months.

A loan is non performing when payments of interest and principle are past due by 90 days or more.

Non performing loans also called as doubtful loans.

For example, you took loan from bank and not paying instalments for 3 months, the loan become non performing loan.