Okuzeka
Finance & Banking vocabulary · Loans & Credit

Non-accrual loan

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, non-accrual loan means: A loan on which normal recognition of interest income has been suspended because collection is doubtful.

In Turkish: faiz tahakkuku durdurulmuş kredi

How it is used

The classification concerns interest recognition; entry and exit criteria depend on the reporting framework.

Example sentences

  1. The bank transferred the troubled exposure to its non-accrual loan category.

    The accounting treatment changes because interest collection is uncertain.

  2. The auditor examined cash receipts on the non-accrual loan.

    Cash received needs assessment under the applicable recognition rules.

Common collocations

  • non-accrual loan status
  • non-accrual loan balance
  • accrueTo build up gradually over time, as interest does on a loan or deposit; in accounting, to record income or costs when they are earned or incurred, not when cash moves.
  • non-performing loanA loan on which the borrower has stopped making payments, usually for 90 days or more, or which is unlikely to be repaid in full.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.