Identifying Non Performing Loans (NPL) is a dynamic and ongoing problem that financial institutions face. The classification for a particular loan application should be done instantly before giving the decision of lending a loan. If NPLs are not recognized properly by the financial institutions, major problems are prone to arise such as bank insolvency or zombification.

Regulators and supervisors should ensure that loans are given to deserving applicants so that the borrower is able to repay the loan to the financial institution.

The output of NPL models is used by Risk Management teams to make analyses out of the model. Eventually, the model output helps the lender give a lending decision based on the historical data within the financial institution. This paper explains the approach of the TAZI Non-Performing Loan Solution.