Definition

Not related to the accumulation of interest or income that is typically recorded in financial statements.

Example

The bank classified the loan as nonaccrual because the borrower had not made payments for several months.

Conversation

I just learned about nonaccrual loans in my finance class.

Oh, really? What does that mean exactly?

It means that the interest isn't being added up while the loan is unpaid.

That makes sense! It sounds like it could be tricky for some borrowers.

Synonyms & Antonyms

Root Explanation

Nonaccrual → It is formed from "non-" (meaning not) and "accrual" (from Latin "accruere", meaning to increase or accumulate). The term refers to a situation where interest or income is not being accrued or accumulated.

Memory Tip

Think of 'not' ('non-') accumulating or increasing ('accrual') — that's why nonaccrual means that something is not accumulating interest or income.

Visually Confused Words