what is a nonaccrual loan 
nonaccrual loan is an accounting term in the lending industry for an unsecured loan that is no longer generating its stated interest rate because no payment has been made by the borrower for 90 days or more for a lender in business to earn interest it has become a nonperforming loan npl loans generate interest only when the borrower makes a payment a portion of which is applied to interest and the rest to the principal the interest on loans is recorded as income by the lender if no interest has been paid by the customer the expected interest has not accrued so the loan has become nonaccrual nonaccrual loans are sometimes referred to as doubtful loans troubled loans or sour loans 