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. Loan Loss Provision

    An expense set aside as an allowance for bad loans (customer ...
  2. Commercial Loan

    A debt-based funding arrangement that a business can set up with ...
  3. Loan Officer

    Representatives of banks, credit unions and other financial institutions ...
  4. Office Of Thrift Supervision - ...

    The bureau of the U.S. Treasury Department that is responsible ...
  5. Standing Loan

    A type of loan where payments are made of interest only. Repayment ...
  6. Term Loan

    A loan from a bank for a specific amount that has a specified ...
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. Managing Wealth

    Unsecured Personal Loans: 8 Sneaky Traps

    If you are seeking a personal loan, be aware of these pitfalls before you proceed.
  4. 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 ...
  5. Personal Finance

    Personal Loans vs. Car Loans

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

    Financial Institutions: Stretched Too Thin?

    Find out how to evaluate a firm's loan portfolio to determine its financial health.
Trading Center