The correct answer is D. 90 Days.
A non-performing asset (NPA) is an asset that has not been serviced for a period of 90 days or more. This means that the borrower has not made any payments on the loan for 90 days or more. NPAs are considered to be a high-risk asset, and banks and other lenders will often take steps to recover the loan, such as selling the asset or taking legal action against the borrower.
There are a number of reasons why a loan may become an NPA. One common reason is that the borrower has lost their job and is no longer able to make their monthly payments. Another reason is that the borrower may have taken out a loan that they were not able to afford in the first place. In some cases, borrowers
may also default on their loans due to fraud or other illegal activity.NPAs can have a significant impact on both borrowers and lenders. For borrowers, an NPA can damage their credit score and make it difficult to obtain future loans. For lenders, NPAs can lead to losses and can also damage their reputation.
There are a number of things that borrowers can do to avoid becoming an NPA. One important step is to make sure that they only take out loans that they can afford to repay. Borrowers should also make sure that they keep up with their monthly payments and should contact their lender if they are having difficulty making payments.
Lenders can also take steps to reduce the risk of NPAs. One important step is to carefully assess the creditworthiness of borrowers
before approving loans. Lenders should also monitor borrowers’ credit reports and should contact borrowers if they notice any changes in their financial situation.NPAs are a serious issue that can have a significant impact on both borrowers and lenders. There are a number of things that borrowers and lenders can do to avoid becoming an NPA.