It can be calculated based on the ending balance and average balance. The formula is as follows:

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

Average overdue loan Loan rate = average balance of overdue loans throughout the period/average balance of loans throughout the period

The average balance of overdue loans in the formula refers to the actual overdue amount, including the overdue extension period and the short-term common part. Generally speaking, the overdue loan ratio should not exceed 8. The lower the ratio, the better the loan's principal recovery, the more efficient the use of funds, and the lower the risk of the asset, and vice versa.