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  #1  
Old 01-13-2016, 04:45 PM
shav456 shav456 is offline
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Default What is suspended interest?

Hi, I'm having difficulties learning this concept. please help me to understand this. And anything that's directly related.

Thank you
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  #2  
Old 12-26-2016, 10:28 AM
mkimkimki mkimkimki is offline
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Default Re: What is suspended interest?

i also wanted to know about this.
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  #3  
Old 01-19-2017, 12:52 AM
webbrowan webbrowan is offline
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Default Re: What is suspended interest?

According to our friend Google, this is definition which turns up - "it is the normal practice to stop accruing interest when payments are 90 days or more past due or when recovery of both principal and interest is doubtful." In most cases for the company, that means that they have loaned money somewhere but that loan seems to be irrecoverable or difficult to retrieve. Interest from the borrower is still due however and is considered an asset on the ledger. It is therefore held "in suspense" when you're looking at your accounts.
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Old 01-19-2017, 12:46 PM
Denise Shaw Denise Shaw is offline
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Default Re: What is suspended interest?

Quote:
Originally Posted by webbrowan View Post
According to our friend Google, this is definition which turns up - "it is the normal practice to stop accruing interest when payments are 90 days or more past due or when recovery of both principal and interest is doubtful." In most cases for the company, that means that they have loaned money somewhere but that loan seems to be irrecoverable or difficult to retrieve. Interest from the borrower is still due however and is considered an asset on the ledger. It is therefore held "in suspense" when you're looking at your accounts.
Thanks for briefly explaining it, my question concerning this is at last has been answered. Very nice!
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Old 01-25-2017, 07:10 AM
stewartdean98 stewartdean98 is offline
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Default Re: What is suspended interest?

Very helpful to understand what is suspended interest. Sometimes we may have stupid questions but it is better to take help of others and get the answers.
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  #6  
Old 01-25-2017, 08:30 AM
stewartdean98 stewartdean98 is offline
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Default Re: What is suspended interest?

Thanks for sharing.
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  #7  
Old 01-27-2017, 09:04 AM
Jovanny Jovanny is offline
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Default Re: What is suspended interest?

Quote:
Originally Posted by Denise Shaw View Post
Thanks for briefly explaining it, my question concerning this is at last has been answered. Very nice!
Thanks a lot. It really clarified the concept. By the way, can you explain how does it eventually affect the loan payments for the borrower?
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  #8  
Old 02-28-2017, 08:50 AM
Mike cowell Mike cowell is offline
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Default Re: What is suspended interest?

Sorry, I also want to know about this.
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Old 03-29-2017, 08:12 AM
Jovanny Jovanny is offline
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Default Re: What is suspended interest?

I guess everyone wants to know more about loans and loans payments.
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Old 05-22-2017, 06:37 AM
puneetc puneetc is offline
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Default Re: What is suspended interest?

It is not only your question but also mine question too.
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  #11  
Old 05-27-2017, 02:00 AM
personallawyerflorida personallawyerflorida is offline
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Default Re: What is suspended interest?

interest when payments are 90 days or more past due or when recovery of both principal and interest is doubtful.
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Old 06-05-2017, 02:41 AM
divi divi is offline
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Default Re: What is suspended interest?

When the company feels you can't pay the interest or principle amount then they put your loan interest as suspended interest
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  #13  
Old 09-07-2017, 03:48 AM
g_nicks g_nicks is offline
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Default Re: What is suspended interest?

In the US, it is the normal practice to stop accruing interest when payments are 90 days or more past due or when recovery of both principal and interest is doubtful. When the loans are transferred to non-accrual status, accrued interest is reversed from income and no further interest is recognised until it becomes probable that the principal and interest will be repaid in full. Loans on which interest has been accrued but suspended would be included in risk elements as loans accounted for on a non-accrual basis.
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Old 10-10-2017, 06:18 AM
angel anna angel anna is offline
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Default Re: What is suspended interest?

This interest is charged to the customer’s account but it is not credited to income; it is placed on a suspense account and only taken to income if there ceases to be significant doubt about its being paid. Loans are transferred to a non-accrual status where the operation of the customer’s account has ceased. This lending is managed by specialist recovery departments and is written down to its estimated realizable value.
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