Section 12: (1) For special types of homogenous credit facilities where

it is often not practicable to investigate the credit worthiness of each individual borrower on a regular basis, the classification and provisioning shall be determined by the financial institution on a portfolio basis by applying formulae approved by the Central Bank that take into consideration factors such as analysis of arrearages, ageing of balances, past loss experience, current economic conditions and other relevant circumstances (2) For micro finance loans, which shall be properly segregated and identified in the books of the financial institution, the credit classification and provisioning requirements issued under the Micro Finance Deposit-Taking Institutions Act, 2003 shall apply.