The loan portfolio is refers to loans that have been made or bought and are being held for repayment. Loan portfolios are the major asset of lending
institutions. The value of a loan portfolio depends not only on the interest rates
earned on the loans, but also on their quality, that is, the likelihood
that interest
and principal will be paid.
It is listed as an asset on the balance sheet. The value of a loan portfolio
depends on both the principal and interest owed and the average
creditworthiness.