What is a slow loan?

In the financial world is a "slow loan" loan, which is assumed to be on the brink of the default settings. Most of the time the loan is declared "slowly" as soon as the debtors came to their payments more than once in a row or missed the payment period directly. In some places, this term is statorically defined, but is generally used as the term art that lacks a solid definition. Different industries, companies and creditors have different sections to determine when to call the loan a slow loan.

Slow loans are usually considered to be liabilities for creditors. Most financial institutions are structured in such a way that they expect and depend on the regular repayment of the loan expenditure. Marking slow loans is the way institutions indicate potential obligations to be able to alleviate the risk before its implementation.

Not all slow loans actually end in default. The risk they might be a real problem. In the normal credit relationship the creditor - the usualLe Bank or other no-final institution-forces an agreement with the debtor on lending a certain amount of money subject to the agreed repayment plan. Most of the time these payments are made with interest, which is useful for creditors. Creditors to count on regular installments of interest to finance other loans and obligations.

Banks usually expect at least some of their loans to turn into slow loans. This is especially true for loans for debtors. The subprime debtor is someone who generally has a bad credit and is considered a risk of repayment.

Most of the time is the decision to borrow money based on five main reflections, sometimes called "five credit CS". It is character, capacity, capital, conditions and collateral. The bank sometimes decides to lend money to subprime to the debtor you do a bad performance in these "cs" if the bank can think of a way to mitigate the risk, toTeré often comes in the form of a higher interest rate. When the debtors are able to pay, the banks will increase the profit. If debtors fail, loans fall into the "slow" category.

The exact definition of a slow loan is sometimes difficult to nail because it depends on the credit institution. The type of loan also depends on the mortgage differs from the car loan, say or small backup. The United States Office for Thrift Supervision (OTS) suddenly defined a slow loan specifically as a delinquent housing loan, but left details of the delinquency to the creditors. The OTS canceled its official definition in 1999, but the sentence still adheres to the financial industry throughout the United States and around the world.

Sometimes any loans that are after 30 days after maturity are considered slow. Others increase the threshold to 60 days, while in other institutions Loan is not slow until the debtor raises the payments to change late. In most cases, slow loans are referred to by collections. Even if there are moneyIn the end, the evaluation of the consumer loan of debtors with slow lending almost always suffers.