what is a nonperforming loan npl 
a nonperforming loan npl is a loan that is in default due to the fact that the borrower has not made the scheduled payments for a specified period although the exact elements of nonperforming status can vary depending on the specific loan s terms no payment is usually defined as zero payments of either principal or interest the specified period also varies depending on the industry and the type of loan generally however the period is 90 days or 180 days investopedia julie bang