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Glossary | N | What is npa

What is NPA?

NPA is an abbreviation for non-performing asset. It is considered as the credit facility in terms of interest or installment of Bond finance principal that has been endured as ‘past due’ for a certain time span. This is one of the practices which are used by various financial institutions. This refers to loan schemes to avoid risks of default. If a loan borrower fails to create interests or to make principle payments within 90 days, the taken loan will be considered as NPA or “non-performing asset”. With any financial institutions, non-performing assets are tricky to handle and continue. The loans are completely dependent on the interest payments.

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