Provisioning calculator
Work out the provision on a loan once it is classified — standard, sub-standard, doubtful or loss.
Provide the right amount on each account, and see exactly which rate produced it.
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Provision required
₹1,00,000
10% of the outstanding, on a sub-standard asset.
Carrying value after provision
₹9,00,000
What the asset is worth on the balance sheet once the provision is made.
How it is built up
| On | Amount | Rate | Provision |
|---|---|---|---|
| Sub-standard — total outstandingTen per cent of the whole outstanding, with no distinction between the secured and unsecured parts. | ₹10,00,000 | 10% | ₹1,00,000 |
| Total | ₹1,00,000 | ||
An NBFC does not provide what a bank provides
On the secured portion of a doubtful asset the two tables differ, and they differ most where the amounts are largest. Take the wrong one and a book more than three years into the doubtful category is provided at twice the required rate.
| Time as doubtful | NBFC | Bank |
|---|---|---|
| Up to one year as doubtful | 20% | 25% |
| One to three years | 30% | 40% |
| More than three years | 50% | 100% |
The unsecured portion is provided in full under both. So is a loss asset.
How an account gets to each classification
- 1Standard. Not overdue beyond ninety days.
- 2Sub-standard. Non-performing — more than ninety days past due. It stays sub-standard for twelve months in the Middle and Upper Layers, eighteen in the Base Layer.
- 3Doubtful. Sub-standard for longer than that period.
- 4Loss. Identified as unrecoverable by the NBFC, its auditor or an inspection — regardless of how long it has been doubtful.
Classification follows the account, not the borrower’s intention, and it only ever moves in one direction while the arrears stand. Working out the date an account turns non-performing in the first place is a separate question, with its own calculator.
The standard-asset rate this uses. Base Layer — 0.25% of the outstanding. A standard provision is a general one: it is made against the performing book as a whole, and it is not deducted in arriving at net non-performing assets.
Ninety days, for everyone. The Base Layer used to recognise a non-performing asset at a longer period. That glide path ended on 31 March 2026, so every NBFC now classifies on the same ninety-day basis.
Where these numbers come from
The arithmetic is this page's own and runs in your browser. The rates it applies are not — they are read straight from the instrument named below, and a test fails the build if any of them is changed without the source changing with it.
It is a guide, not advice. Your own board-approved policy, your scheme terms and your auditor decide what applies to a particular account.
Source. Master Direction — Reserve Bank of India (Non-Banking Financial Companies — Income Recognition, Asset Classification and Provisioning) Directions, 2025, effective 28 November 2025. The ninety-day non-performing basis applies to every NBFC including the Base Layer, whose glide path ended on 31 March 2026. Read the Master Direction
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From the people who wrote this
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