NPL1 Monitoring Templates Weekly

“Overdue days do not wait for management meetings.”

When you track Non-Performing Loan 1 (NPL1) weekly, you stop overdue borrowers from drifting quietly from one delay level to the next. The practical problem you solve is simple: you need a clean, repeatable way to spot who is late, record what you did, and decide who must join the follow-up as delays grow. If you do this consistently, your branch reduces avoidable escalation surprises and you keep recovery actions tied to the borrower’s current status.

After you apply this chapter’s rules, you will classify each overdue borrower using the exact Days Past Due (DPD) ranges-GREEN (less than 60), AMBER (60-90), and RED (greater than 90)-and you will map each status to the correct escalation level. You will also fill the NPL1 - Branch Borrower Follow-up & Recovery Log (Weekly) with the right fields so your Branch Manager and Head of Credit can verify actions week by week.

Why This Matters

Selam, 34, a Loan Officer and Branch Field Supervisor, sees the same issue every week: borrowers miss a payment, then the file starts to “look busy” while nothing changes. Calls get delayed, home visits happen too late, and escalation happens based on memory instead of recorded days. That leads to two risks you cannot afford-late action when borrowers still respond, and weak evidence when you need approval or legal steps.

NPL1 exists to remove that problem. NPL1 stands for Non-Performing Loan 1, and it functions as your weekly tracking report for borrowers who have not paid on time. You use it to (1) identify overdue borrowers using DPD, (2) record follow-up actions taken, (3) keep borrower status aligned to the DPD range, (4) escalate to the correct responsible level, and (5) report results to the Branch Manager and Head of Credit.

The key outcome you should expect is control. When you classify correctly and escalate on time, you can tell at a glance which borrowers require only routine follow-up and which borrowers need stronger attention because the delay has crossed a defined DPD boundary. Ask yourself: if someone checked your log tomorrow, could they see the borrower’s overdue days, the actions you took, and the reason for escalation-without guessing?

Practical takeaway: NPL1 turns overdue tracking into a weekly routine with clear status rules and clear escalation mapping, so your branch acts while the delay is still manageable.

How It Works

NPL1 uses one main measurement: Days Past Due (DPD). DPD means the number of days between the due date of the installment and today’s date (or the report date). The closer you calculate DPD to the report date, the more accurate your GREEN/AMBER/RED classification stays.

Use the DPD Color Ladder Framework to classify borrowers into one status band and then apply the escalation rule tied to that band. Your status always follows the DPD range, not your feelings about the borrower’s attitude.

1. Calculate DPD for each borrower using the report date.

DPD = Today’s Date (or Week Ending date) − Due Date. If the installment was due on 03-May and your Week Ending date is 10-May, the DPD equals 7. You must calculate DPD on the same date you submit the weekly log, so all borrowers use the same reference point.

2. Assign the correct color status using the exact DPD ranges.

• GREEN: DPD less than 60 (DPD 90)

For example, if the borrower shows DPD 42, you classify GREEN. If the borrower shows DPD 68, you classify AMBER. If the borrower shows DPD 100, you classify RED.

3. Apply the escalation rule based on the status band.

• GREEN: escalated to N/A (no escalation required)
• AMBER: escalated to Head of Credit
• RED: escalated to CEO & Board

The purpose of this mapping is speed and fairness. You do not hold AMBER borrowers back “because they promised.” You do not send RED borrowers up late “because we still hope.” You escalate because the DPD boundary signals a higher risk level and requires stronger oversight.

4. Record actions and evidence in the NPL1 log fields.

Your NPL1 - Branch Borrower Follow-up & Recovery Log (Weekly) requires: Date, Borrower ID, Loan Amount (Birr), DPD, Action Taken, Follow-up Notes, Escalated To Responsible Staff, Status, and Evidence. You use Evidence to prove what you did-like a call log reference or a visit note reference-so the file does not rely on verbal claims.

Concrete example with Selam’s weekly workflow: Selam pulls a list of overdue installments for the Week Ending date. One borrower shows DPD 49. Selam assigns GREEN and records “Phone call (1st attempt)” with a follow-up note like “Acknowledged delay; will pay on 14-Apr.” Another borrower shows DPD 68. Selam assigns AMBER and escalates to Head of Credit, with Evidence like “CALL_LOG_BX12_19APR.” A third borrower shows DPD 110. Selam marks RED and escalates to CEO & Board, with Evidence such as “COURT_BR011_03MAY” if court filing already started.

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