Write-Off
A reduction in an individual's or a company's income as the result of an expense.
For example, an unplayable credit sale may be a write-off for the creditor, especially
if the debtor declares bankruptcy. The bankruptcy means that the debtor is unable to pay the debt, which results in a loss of
income for the creditor. A write-off may
usually be deducted from one's taxable income.
Write-off
To take an asset entirely off the books because it no longer has any value. If an
accrual basis taxpayer has taken money into
income when bills were sent out to
customers, but then some of the bills became uncollectible, the taxpayer may write
off the uncollectible ones as a deduction against income. Financial
institutions are required to write off loans when they become delinquent by a certain amount.
Accounting
In business accounting, the term write-off is used to refer to an investment (such
as
a purchase of
sellable goods) for which a return on the investment is now
impossible or unlikely. The item's potential return is thus canceled and
removed
from ("written off")
the business's balance sheet. Common write-offs in retail include spoiled and damaged goods.
Banking
Similarly, banks write off
bad
debt that is declared non-collectable (such as a loan on a defunct business or a credit card due that is now in default), removing it from
their balance sheets.
Rescheduled loans
Bank loans that are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments.
Rescheduled loans
Bank loans that are usually altered to have longer maturities in order to assist the borrower in making the necessary repayments.
Rescheduled Loan
New loan that replaces the outstanding balance on an older loan, and
is
paid over a longer period, usually with a lower installment amount. Loans are commonly
rescheduled to accommodate a borrower in financial difficulty and,
thus, to avoid a
default. Also called restructured loan.
Definition of 'Debt Rescheduling'
A practice that involves restructuring the terms of an existing loan in order to
extend the repayment period. Debt rescheduling may mean a delay in the due date(s) of
required payments or reducing payment amounts by extending the payment period and increasing
the number of
payments.
Rescheduling
FI’s should follow clear guideline for rescheduling of their problem accounts and monitor accordingly
Rescheduling of problem accounts should be aimed at a timely resolution of actual or expected problem accounts with a view to effecting maximum recovery within a
reasonable period of time.