Non-performing loans has led to failures of some banks in the past contributing to the loss of shareholders investment and inaccessibility of bank loans to other members of the public. Loan portfolio problem which includes lack of adequate monitoring has been one of the major problems in the banking industry. In this study an Agent Based System for Monitoring Loan Defaulters in Commercial Bank has been developed to overcome the problem. The task of the Agent is to remotely identify Non- Performing Loans (NPL) and their status from the databases of commercial banks and report such to the decision makers of the controlling bodies of the commercial bank for their necessary actions. The design and implementation of the system were a top-down approach using C# with Visual Studio and Microsoft Access database for portability.