Definitions of Asset Classes
Non-performing loan ("NPL"): A loan that is deemed to cause probable credit losses including individually assessed impaired loans, portfolio assessed loans past due more than 60 days and restructured portfolio assessed loans. Hoist Finance primarily purchases loans that are credit-impaired on initial recognition.
Performing loan: A loan in which payments of interest and principal are less than 90 days due.
Secured loan: A loan in which the borrower pledges some asset as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan.
Unsecured loan: A loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral.
Consumer loan: A loan given to a person to finance specific types of expenditures.
SME loan: A business loan extended only to small- or medium-sized enterprises.