The situation is familiar when when making a loan in a bank, a specialist is interested in order to also conclude the borrower
Dignities and disadvantages of credit insurance in the bank
When you come to the bank and want to make a loan on this or that amount, the following is proposed to the loan
· Life of the borrower;
· Health of the lender;
· Combined insurance program of life and health;
· Insurance of risks of work work, unemployment;
· Confidence and peace of mind that if the risk arises not to cope with the loan payments, insurance will cover compulsory payments;
· In the event that an insured event occurred, a loan dossier will not deteriorate;
· Easy and transparency of paper insurance.
What are the shortcomings
· There is an increase in the total monetary load from the borrower;
· There is a risk of possible deception with interest accrual and mandatory payment of insurance;
· In order for the borrower to get an insurance policy, he must answer a number of certain requirements;
· Insurance is beneficial to the lender, not the client itself.
Refusal to the Credit Insurance Treaty
In accordance with the banking legislation, the credit fee has the right to not apply insurance for the received loan. The fact of refusal from insurance is not a reason by the bank, so as not to provide a loan to the borrower.