Portfolio At Risk (PAR)Help

Portfolio At Risk (PAR) is the percentage of total loan portfolio that is at risk. So, PAR 30 is the principal amount(net after repayments) of open loans overdue by 30 days or open loans where no repayment has been made for 30 days. This is divided by the total principal amount of all open loans. Generally PAR 90 loans are considered as bad loans. You can use this to keep enough cash aside in case of future loan defaults. PAR values are often used in accounting to show the health of the total loan portfolio.