---
title: "Process Loan Classification"
space: "Lending"
url: "https://docs.frappe.io/lending/process-loan-classification"
updated: "2026-01-06"
---

The loan classification process is a daily process that is used to classify the loans for credit bureau reporting. This one single process updates multiple parameters of a loan like days past due, marking or unmarking the loan as NPA, and updating the classification codes. Users can also run this process manually to do an ad-hoc classification.

![Process Loan Classification](/files/Process Loan Classification.png)  


The classification codes and bucket can be configured in the Company master under the loan tab

![Loan Classification Ranges](/files/Loan Classification Ranges.png)