DEFINITION of 'Slow Loan'

A loan that a lender considers at risk for nonpayment. Banks and lending institutions will often set aside a portion of their cash reserves to hedge against potential slow-loan losses. The Office of Thrift Supervision (OTS) originally provided a regulatory definition of a slow loan.

BREAKING DOWN 'Slow Loan'

Outstanding delinquent loans must be reported to federal authorities and will be further processed through collection agencies. According to the OTS, delinquent loans are considered "slow" if a one-year loan is more than 60 days overdue or if a loan of up to seven years is over 90 days overdue.

RELATED TERMS
  1. Delinquency Rate

    The percentage of loans within a loan portfolio that have delinquent ...
  2. Loan Loss Provision

    An expense set aside as an allowance for bad loans (customer ...
  3. Loan Officer

    Representatives of banks, credit unions and other financial institutions ...
  4. Standing Loan

    A type of loan where payments are made of interest only. Repayment ...
  5. Direct Consolidation Loan

    A loan that combines two or more federal education loans into ...
  6. Origination

    The process of creating a home loan or mortgage. During the origination ...
Related Articles
  1. Personal Finance

    How To Apply For a Personal Loan

    Learn about different avenues for applying for a personal loan, and learn valuable tips to help you get your personal loan application approved.
  2. Insights

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.
  3. Personal Finance

    All About Government Loans

    There are many reasons to seek a government loan rather than one from a private lender. Government loans typically have low interest rates and offer fixed or subsidized options, as well as deferred ...
  4. Managing Wealth

    Unsecured Personal Loans: 8 Sneaky Traps

    If you are seeking a personal loan, be aware of these pitfalls before you proceed.
  5. Personal Finance

    Understanding Term Loans

    A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate.
  6. Personal Finance

    Personal Loans: To Lend Or Not To Lend?

    Attempting to help a loved one with a cash loan can put a strain on your relationship - and your bank account.
  7. Personal Finance

    Personal Loans vs. Car Loans

    How to tell whether a personal loan or a car loan is better for you.
  8. Retirement

    Business Owners: A Guide To Qualified Retirement Plan Loans

    Thinking of adding a loan feature to your company's plan? Here's what you need to know.
RELATED FAQS
  1. What are the differences between delinquency and default?

    Find out more about loan delinquency, loan default, and the difference between a loan borrower defaulting and being delinquent ... Read Answer >>
  2. What are the long-term effects of delinquent accounts?

    Find out more about loan delinquency, loan defaults and the long-term consequences of borrowers who are delinquent on their ... Read Answer >>
  3. Are secured personal loans better than unsecured loans?

    Read about the differences between secured loans and unsecured loans and how they are used. Learn about forms of collateral ... Read Answer >>
  4. What are the pros and cons of life insurance policy loans?

    Find out the pros and cons of borrowing against your life insurance policy to help you decide if this loan type is the right ... Read Answer >>
  5. What's the average salary of a loan officer?

    Read about the average yearly salary for a loan officer. Learn about what these professionals do and what determines their ... Read Answer >>
  6. Federal student loan rates: who sets them, why they vary

    Federal student loan rates are set by Congress, not by banks. Learn more about who gets what rate, and how often they get ... Read Answer >>
Trading Center