The data item is specific to banks and financial institutions. It refers to the total amount of loans lent by the company minus possible default losses.
Suppose a bank has 10 customers and it has lent Rs.10,000 to each one of them. It estimates that about 2% of the total loan amount might never be returned and makes provision for the same. So the total loan amount is Rs.1,00,000 (10,000 * 10). Loan loss provision is Rs.2,000 (2% * 1,00,000). The net loan amount is Rs.98,000 (1,00,000 – 2,000).
Net loans is recorded on the assets side of the balance sheet.