This topic describes the Plan for classification of an asset.

The Asset Classification Plan plan consolidates the criteria for asset classification, asset classification codes, and various other classification Plan. This plan is linked to a classification criterion, and multiple criteria can be associated with the same plan. Currently, the supported asset classification criterion is the Arrear Payment Criterion. Under this criterion, assets are classified based on the number of days the borrower has not paid the overdue amounts.

Asset classification Plan are linked to the product segment, causing all loan accounts under that product segment to follow the same classification preference plan. The status of a loan account is automatically determined during the end of day batch process, based on the classification criteria of the plan and the arrears due condition the account falls under. Loan account status can move forward, indicating a longer past due tenor and worsening status, or move in reverse, indicating a shorter past due tenor due to repayment and improving status.

This topic contains the following subtopics:

• Create Asset Classification Plan
  This section describes the steps for creating asset classification Plan.
• View Asset Classification Preferences