Full formBanking & Finance
LDQstands forLoan Disbursement Quotient
Full Form of LDQ
What is LDQ?
Loan Disbursement Quotient (LDQ) is a financial metric used by banks and financial institutions to evaluate the efficiency of their loan disbursement process. It represents the ratio of total loan amounts actually disbursed to the total loan amounts sanctioned within a specific period. In India, LDQ is particularly relevant for monitoring the performance of retail and SME lending operations. Banks use this quotient to identify bottlenecks in disbursement workflows, ensure timely credit delivery, and maintain customer satisfaction. The metric is commonly tracked in monthly or quarterly branch performance reports, especially in public sector banks and non-banking financial companies (NBFCs). For competitive exams like IBPS PO, RBI Grade B, and SBI Clerk, understanding basic financial ratios including LDQ is essential for the quantitative aptitude and banking awareness sections. A high LDQ indicates efficient disbursement, while a low LDQ may signal procedural delays or documentation issues. By analyzing LDQ alongside other performance indicators, banks can streamline their lending operations and align with the Reserve Bank of India's prompt credit delivery guidelines.
LDQ का फुल फॉर्म
ऋण वितरण गुणांक
Example
The regional manager reviewed the LDQ of each branch and recommended process improvements for those with ratios below 85%.
LDQ — frequently asked questions
What is the full form of LDQ?
The full form of LDQ is Loan Disbursement Quotient.
How is LDQ calculated?
LDQ is calculated as the total amount of loans disbursed divided by the total amount of loans sanctioned during a given period, expressed as a percentage.
Why is LDQ important in Indian banking?
LDQ helps banks measure disbursement efficiency, ensuring timely credit flow to borrowers and improving operational performance, which is critical for meeting regulatory targets and customer expectations.