Non-performing Asset (NPA)
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Answer / guest
A credit facility which ceases to generate income for a
bank
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Answer / bhupender janmejai
A classification used by financial institutions
that refer to loans that are in jeopardy of default.
Once the borrower has failed to make interest or
principal payments for 90 days the loan is considered
to be a non-performing asset.
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A debt obligation where the borrower has not paid any previously agreed upon interest and principal repayments to the designated lender for an extended period of time. The nonperforming asset is therefore not yielding any income to the lender in the form of principal and interest payments.
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