5 Ways Litigation Management System (LMS) Help Banks in Dealing With Non-Performing Assets

Non-performing assets (NPA) are loans or advances that have remained unpaid to the financial institutions beyond their due dates. NPA is a major point of concern for any bank because it affects their cash flow, disrupts their budget, and reduces their earnings. Although the duration differs for different loan types, defaulting payment for 90 days or more is usually frowned upon. In order to prevent the borrowers from defaulting on repayment, banks and other financial institutions implement measures such as litigation management system (LMS).