Classified loans are microfinance / bank loans that have failed to meet acceptable credit standards according to microfinance / banking practices and are in danger of default. Classified loans have unpaid interest and principal outstanding, and there is uncertainty whether the microfinance/ bank will be able to recover the loan proceeds from the borrower.
These loans should have been classified early according to ages in the ageing report under Loan\Portfolio Reports\Analysis Reports\Ageing Report
This feature enables booking of loans in arrears for a particular period to the respective GL accounts defined according to the age classes under System/Configuration/Loan product settings/Loan GL Accounts settings part 2. Declassification enables these amounts to appear on the balance sheet under assets (Financial report).
The Nº 1 Software for Microfinance