BNR loan classification & provisioning, explained

BNR Article 39 classifies every loan by how many days it is in arrears, and attaches a provisioning rate to each class. Getting this right is both a regulatory obligation and a portfolio-health signal.

The five classes

• Normal — 0 days overdue — 0% provision
• Watch — 1+ day overdue — 1%
• Substandard — 90+ days — 20%
• Doubtful — 180+ days — 50%
• Loss — 360+ days — 100%

Why automation matters

Manual classification and provisioning are slow and error-prone. Ingata ILBMS derives the class from live arrears, computes provisioning net of eligible collateral, and keeps an audit trail for every change — so monthly returns are accurate and defensible.