The overdue loan ratio is the overdue loan ratio, which refers to the proportion of overdue loan balance to the current loan balance. It usually reflects the extent to which loans issued by banks are not recovered on time. Usually, the main reasons of loans overdue are: delay in construction period, shutdown, unavailability after completion, low economic benefit after commissioning, inability to repay, great loss and refusal to return. The overdue loan ratio refers to the proportion of overdue loans to all loans. Calculation formula: It can be calculated according to the ending balance and average balance, and the formula is as follows: ending overdue loan ratio = ending overdue loan balance/ending total loan balance average overdue loan ratio = ending overdue loan average balance/ending average loan balance. The average overdue loan balance in the formula refers to the actual overdue amount, including overdue extension and short-term sharing. Under normal circumstances, the proportion of overdue loans shall not exceed 8%. The lower the ratio, the better the recovery of loan principal, the better the efficiency of capital use and the lower the asset risk, and vice versa.
What is the difference between overdue loan rate and non-performing loan rate?
1. Overdue rate refers to the proportion of overdue loans to all loans, and the calculation formula is overdue loan rate at the end of the period = overdue loan balance at the end of the period/total loan balance at the end of the period. Reflect the efficiency of loan use from the perspective of whether the borrower repays on time. Monitoring the overdue loan ratio can help banks handle related loans in time.
2. Non-performing loan ratio refers to the ratio of non-performing loans of financial institutions to total loan balance. Financial institutions generally classify loans into five categories according to the risk basis: normal, concerned, secondary, suspicious and loss, of which the latter three categories are collectively referred to as non-performing loans. Non-performing loan ratio is one of the important indicators to evaluate the security of credit assets of financial institutions. The high rate of non-performing loans shows that financial institutions are at great risk of recovering loans; On the contrary, it shows that the risk of financial institutions recovering loans is small. Therefore, financial institutions are committed to controlling their non-performing loan ratio.
3. Overdue loans are part of non-performing loans, and they are the loans with the greatest hope of recovery. If the overdue loan cannot be recovered for more than two years, it becomes a sluggish loan. Among overdue loans, loans that are determined to be irrecoverable become non-performing loans. Non-performing loans can reflect the asset quality of lending institutions and are an important indicator to judge the operating conditions of lending institutions. However, overdue loans are just a statement and cannot be used as a standard for judging the operation of lending institutions.