Non-performing loan (NPL) is a type of debt. This debt has not received scheduled payments for a specific period.
In Bangkok, examples include payments not made for 90 days.
Non-performing loan differs from restructured loan. Restructured loans receive adjustments for easier repayment.
Non-performing loans lack such adjustments, illustrating a key difference.
Non-performing loan features high interest rates. These rates compensate for increased risk.
Other examples encompass additional fees and penalties.
Non-performing loans share features with other loans.
Common features include monthly payments. Examples also involve collateral requirement and repayment schedules.
Non-performing loan features unusual flexibility in negotiation. This flexibility allows for potential loan recovery strategies.
Examples also include asset seizure options and potential for loan resale.
Non-performing loan features unique asset management opportunities. These opportunities allow investors to purchase distressed assets at lower prices.
Other unique features include potential for significant returns and specialized negotiation processes.
Non-performing loans offer more risk and potential return. This contrasts with performing loans, which provide steady, less risky returns.
The difference highlights the unique investment landscape of non-performing loans in Bangkok’s real estate market.
For further details on terminologies used in this context, please refer to our glossary about Bangkok real estate.