Tracking Financial Performance Standards of ... - Sa-Dhan

Tracking Financial Performance Standards of Microfinance InstitutionsStep 10: Age at end of installment can be calculated as follows:Age of Overdue Loan= Date at which age is being calculated (i.e., today or date at end of installment)– (Minus)Date at which earliest UNPAID Overdue occurred= “Y” Days.Here unpaid is as of the reference date of calculating the age.Step 11: After identifying age of all the loans, aggregate repayment schedules for all loan accounts and summarisethem in the form of an aging schedule as given below. (See section 4.2.2 in chapter 4)➞ Regular Loans (Loans with No Over Dues)➞ Loans < 30 Days Past Due➞ Loans between 31-60 Days Past Due➞ Loans between 61-90 Days Past Due➞ Loans between 91-180 Days Past Due➞ Loans between 181- 365 Days Past Due➞ Loans > 365 Days Past DueStep 12: Calculating Portfolio at RiskUsing either of the reports (loan loss provision table or aggregated loan repayment format), sum the unpaidprincipal balance of all loans with payments past due (or overdue or arrears) and divide it by the Total GrossOutstanding Portfolio (which is the sum of the outstanding principal amounts of all loans). This is the TotalPortfolio at Risk or PAR >=1 Day. (The procedure is outlined in aging analysis Table – 13)Arrive at the Portfolio at Risk (PAR) for past due loans with different ages. PAR is usually calculated forseveral categoriesF PAR > = 1 Day = Sum of PAR 1-30 Days+31-60 Days+…PAR > 365 DaysF PAR > 30 Days = Sum of PAR 31-60 Days+61-90 Days+ …PAR > 365 DaysF PAR > 60 Days = Sum of PAR 61-90 Days+91-120 Days+ …PAR > 365 DaysF PAR > 90 Days = Sum of PAR 91-120 Days+121-180 Days+ ...PAR >365 DaysF PAR > 180 Days = Sum of PAR 181-365 Days+ PAR >365 DaysF PAR > 365 Days (1 Year) = Sum of PAR > 365 Days74