Loan Portfolio Management

Loan portfolio management involves overseeing a collection of loans a financial institution has issued to ensure overall profitability and risk control. It includes assessing borrower creditworthiness, diversifying loan types and customers, setting interest rates, and monitoring repayment performance. The goal is to balance earning interest income with minimizing the risk of default, adjusting strategies as market conditions change. Effective management helps the institution maintain financial stability, optimize returns, and prevent losses from bad debts while supporting its lending objectives.