What is a Nonaccrual Loan?

A nonaccrual loan is a loan on which interest is not being accrued because the borrower is not making payments or is not expected to make payments. Nonaccrual loans are sometimes called "nonperforming loans." Is accrued interest an asset or liability? Yes, accrued interest is a liability. This is because it is the interest that has been earned but not yet paid. What is accrued loan interest? Accrued loan interest is interest that has been earned but not yet paid. It represents the amount of interest that has accumulated on a loan since the last interest payment was made.

What is a PCD asset? A PCD asset is a loan that has been securitized by a pool of collateralized debt obligations (CDOs). The loans in the pool are typically from a variety of lenders, including banks, credit unions, and finance companies. The pool is then sold to investors in the form of bonds. The bonds are backed by the payments on the loans in the pool. When can a loan be returned to accrual status? A loan can be returned to accrual status once the borrower has made a full principal and interest payment on the loan. What does accrual loan mean? Accrual loan means a loan in which interest accrues on the unpaid principal balance.