Non-Performing Loan (NPL)

What Does Non-Performing Loan (NPL) Mean?
Loans that are in default or close to being in default.

Investopedia explains Non-Performing Loan (NPL)
Many loans become non-performing after being in default for three months, but this can depend on the contract terms.

Related Terms

Default
Incipient Default
Loan
Nonperforming Asset
Pre-Provision Operating Profit - PPOP
Texas Ratio
More Related Terms

Related Links

The Importance Of Your Credit Rating - Do you know how your borrowing activities affect your credit rating? Find out here.
Texas Ratio Rounds Up Bank Failures - This measure can help investors spot potential trouble in a bank's financials. Find out how.
Paying Off Your Mortgage - This may be the biggest debt you'll ever incur. Learn why you should retire it sooner rather than later.
Compare Local Interest Rates - Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
How is my credit score calculated?

Get a new investing term in your inbox each day!

- join our Term of the Day!