four-level classification
normal
normal repayment loan
overdue
Overdue loans refer to loans that are overdue and not repaid, as long as more than one day is overdue
sluggish
Sluggish refers to loans that are overdue for two years or less than two years but the operation is stopped and the project is dismantled.
bad debts
Bad debts refer to loans that are determined to be irrecoverable in accordance with the relevant regulations of the Ministry of Finance and need to write off the bad debt reserves
five-level classification
normal loan
The borrower can perform the contract and repay the principal and interest normally, and there are no negative factors that affect the timely and full repayment of the loan principal and interest. The probability of loan loss is 0
Focus on Loans
Although the borrower is currently able to repay the principal and interest of the loan, there are some factors that may adversely affect repayment. If these factors continue, the borrower's repayment ability will be affected, and the probability of loan loss will not exceed 5%
subprime loan
The borrower's repayment ability has obvious problems, and the principal and interest of the loan cannot be repaid in full by relying solely on its normal operating income. The probability of loan loss is 30%-50%
Doubtful Loans
The borrower cannot repay the principal and interest of the loan in full. Even if the mortgage or guarantee is executed, it will definitely cause some losses. It is only because of the borrower's reorganization, merger, consolidation, collateral disposal and pending litigation. The amount of the loss cannot be determined. Determined, the probability of loan loss is between 50%-75%
Lost loan
It means that the borrower has no possibility of repaying the principal and interest. No matter what measures and procedures are taken, the loan is doomed to be lost, or although a very small part can be recovered, its value is also negligible. From the bank's point of view, it is meaningless and It is necessary to keep it in the book as a bank asset. For this type of loan, it should be cancelled immediately after performing the necessary legal procedures. The probability of loan loss is 75%-100%.