Impaired Loan
An impaired loan is a loan for which the lender no longer expects to collect all contractual principal and interest as scheduled.
Impaired and Nonperforming Loan Status terms for credit facilities, borrower analysis, pricing, fees, amortization, repayment, loan types, and regulation.
Impaired and Nonperforming Loan Status terms explain loan types, credit facilities, borrower analysis, pricing, interest, fees, repayment schedules, amortization, government programs, and lending standards.
Use this branch when a loan term changes facility type, borrower obligation, cost of credit, repayment timing, eligibility, underwriting, or regulatory disclosure.
| Term | Use it for |
|---|---|
| Impaired Loan | Loan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term. |
| Impaired Loan vs. Bad Loan | Loan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term. |
| Impaired Loan vs. Defaulted Loan | Loan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term. |
| Non-Performing Loan (NPL) | Loan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term. |
| Nonaccrual Loan | Loan type, facility, borrower analysis, pricing, APR, fee, amortization, repayment, government program, or lending-standard term. |
Check the promissory note or loan agreement, borrower eligibility, principal, rate, APR, fee schedule, maturity, amortization method, repayment term, covenant, disclosure, and underwriting file.
Loan terms affect cost and legal obligations; this page is educational and does not provide personalized borrowing or lending advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
An impaired loan is a loan for which the lender no longer expects to collect all contractual principal and interest as scheduled.
Impaired loan and bad loan both signal credit weakness, but they differ in accounting treatment, collectability assessment, and lender classification.
Impaired loan and defaulted loan compare expected collectability with actual borrower failure to meet contractual loan obligations.
A non-performing loan is a loan on which the borrower has stopped making required payments or is unlikely to pay as agreed.
A nonaccrual loan stops recognizing interest income because full collection of principal or interest is doubtful.