Personal loan classification means giving every single loan case a new status like Unclassified , Substandard, doubtful and bad/loss by way of verification of borrower’s repayment performance using a particular date even though provisioning means putting away fund from your profit against feasible loan loss. This is completed for safeguarding your depositor’s owners’ fairness and ensuring proper recycling of funds so as to accelerate the economic growth of your country. Besides, a correct loan classification along with provisioning system ensures credibility from the financial system that therefore restores trust and confidence in the minds of your depositors.
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