Draft process flow for rehabilitation of non-performing loans that have been regularised in a Commercial Bank
Question
Draft process flow for rehabilitation of non-performing loans that have been regularised in a Commercial Bank
Solution
Sure, here is a step-by-step process flow for the rehabilitation of non-performing loans that have been regularised in a Commercial Bank:
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Identification of Non-Performing Loans (NPLs): The first step is to identify the non-performing loans. These are loans where the borrower has not made the scheduled payments for a specified period, usually 90 days.
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Classification of NPLs: Once the NPLs are identified, they are classified based on the severity of the default. This could be substandard, doubtful, or loss.
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Regularisation of NPLs: The next step is to regularise the NPLs. This involves restructuring the loan terms to make it easier for the borrower to repay. This could involve reducing the interest rate, extending the loan term, or even forgiving a portion of the loan.
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