Loan losses can be dissolved, closed, revoked or declared bankrupt. Loss loan refers to a loan whose principal and interest cannot be recovered or only a small part can be recovered after all possible measures or all necessary legal procedures are taken. The most obvious feature of a loss-making loan is that the borrower has the ability to repay the principal and interest for free, but has no ability to refuse to repay the loan. In a society ruled by law, banks can collect debts through legal means. The loss probability of loan loss is basically 95% to 100%. Loans overdue for more than 720 days must be classified as losses.