In the determination of the classification for loans and advances, performance will be the primary consideration. The performance will generally show the repayment capability of the borrower. All loans and advances should be classified by institutions according to the following criteria:-
Days at Risk (Number of days past due)
Classification
a)
Current and up to date in payments of principal and profit
Normal
b)
1 to 30 days in arrears or where one instalments for either principal or profit is due and unpaid
Watch
c)
31 to 60 days in arrears or where two instalments for either the principal or profit are due and unpaid
Substandard
d)
61 to 90 days in arrears or where three instalments of either principal or profit are due and unpaid
Doubtful
e)
More than 90 days in arrears or where four or more instalments of either principal or profit are due and remain unpaid
