How do you calculate the delinquency rate?

The delinquency rate is calculated by dividing the number of delinquent loans by the total number of loans, then multiplying the result by 100 to express it as a percentage. A loan is typically considered delinquent if it is overdue by a specified number of days, often 30 days or more. The formula is: Delinquency Rate = (Number of Delinquent Loans / Total Number of Loans) x 100. This metric helps assess the health of a loan portfolio and the effectiveness of credit management practices.