DELINQUENCY RATE
Loan percentage in a loan portfolio that has a delinquent payments. It is the number of loans that has a delinquent payments that is divided in a number of loans in an institution holds. It is usually affected by the credit quality of the borrower and the macroeconomics. For example, if a financial institution has a loan portfolio of 1,000 loans and 100 of those loans have delinquent payments greater than a few months, the delinquency rate would be 10% (100/1,000).
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