59 microfinance terms, explained

The amount that was due but hasn't been paid. Unlike PAR, it counts only the missed amounts, not the whole loan balance.

How much of what was scheduled to be collected in a period actually was, often including past arrears.

How many days the oldest unpaid instalment of a loan is overdue. Drives PAR buckets and provisioning classes.

The total outstanding principal of all loans that haven't been written off, including those in arrears.

An expense set aside for expected loan losses, calculated by applying a rate to loans in each days-past-due class.

The cumulative balance of provisions on the balance sheet, reduced by write-offs.

Changing a loan's terms — a longer term, a grace period or a new schedule — usually because the member can't pay as agreed. Restructured loans should…

A loan whose payments are 90 or more days overdue, or where repayment is otherwise doubtful.

Portfolio at risk over 30 days — the most widely used measure of microfinance loan quality. Below 5% is generally considered healthy.

Portfolio at risk over 90 days. Loans this late are usually classified as non-performing.

The outstanding principal of all loans with any payment overdue by more than a set number of days, as a share of the gross loan portfolio. The whole …

Money collected on a loan after it was written off.

Amounts actually received as a share of amounts that fell due in a period. A high repayment rate can still hide a bad portfolio, so read it next to P…

Removing a loan judged uncollectable from the balance sheet, charged against the loan loss reserve. Collection efforts can continue; any later paymen…