What is a non -paying loan?

Inaccessible loan is a loan that is either by default or is about to be, with adequate expectations that the loan will enter the default settings, even if it has not yet been technically default. In general, banks like to avoid non -paying loans because there is a risk that they will not be able to restore the principal on the loan, let alone the interest that it has accumulated. This type of loan is also sometimes known as a non -comprehensive loan or simply a dubious loan. The basic rule is that if no payment of interest or principal has been received for 90 days, it is an inflexible loan. If a special agreement on refinancing or delay in payment has been made and there is a doubt that the debtor will be able to repay the loan, the loan may also be considered to be unpaid, although the 90 -day period has not been recorded.

As soon as the loan has been classified as non -payment, the creditor can start taking steps to restore the principal. In the case of a loan that was supported by asset, the asset can be entertained. A classic example is the closure of DomoVA, in which the bank takes a home that supports a loan and sells it to another buyer to get the amount of unfulfilled loans that are still outstanding. Another example is the re -cars, in which a non -function with a non -functional car is well done by taking the car back and selling it to another buyer.

Banks can also use collection services in an attempt to gather on an enemy loan. The measures that can be taken differ depending on where they operate and the type of loan. Sometimes the bank may be willing to agree with the debtor to lend to tolerability to provide additional auxiliary measures to help the debtor return to the repayment management, as this may be less expensive than the steps needed to assemble the loan by other means.

Inaccessible loans look bad on the books of the bank. Banks want to be able to document the stable flow of incoming payments for outstanding loans. If a non -paying credit componentThe bank's loan portfolios will start to rise too high, it may be concerned that the bank will not be able to remain a solvent.