Advantages of Credit Insurance And Recommendation
Advantages of Credit Insurance And Recommendation- Needs often come unexpectedly, although previously we already assess the needs in the future. However, there is often a need for unexpected and urgent that must be met that need funding. Then we make a loan to the bank became one of the most convenient and practical solution which is used as an option. In every month we also increase the burden of spending enough to drain the bag. It later became one of the considerations or concerns that may terbesit in your mind is whether it can pay off the loan.
The concern was also taken into consideration for financing commercial banks or financial institutions. If many debtors are unable to repay their credit load, will certainly result in losses. It is even possible to go out of business. However, it has no need to worry anymore. Because now it's available credit insurance services.
Credit insurance is one type of protection given to commercial banks or financial institutions finance. Such protection is a protection for the risk that the debtor is unable to repay the loan credit load. Protection is not given to the debtor as the recipient of credit from commercial banks or financial institutions finance. However, the insured party is a commercial bank or financial institution finances itself.
Criteria Guaranteed Loans
Commercial banks or financial institutions who wish to apply for financing of credit insurance should understand some of the criteria that can be secured credits in credit insurance. Some of the credit criteria is if credit is given to customers or debtors based on the norms of a healthy credit, reasonable, and generally accepted; the debtor at the time of creditors was on shaky economic conditions or in the bankruptcy proceedings, the debtor is not currently have dependents or debt load obtained from commercial banks or other financial institutions financing, and the debtors already have a business license and do not conflict with rules or applicable law. In addition, the credit process conducted in accordance with appropriate Manual SE Lending Bank Indonesia.
For the bulk of credit granting criteria in credit insurance is guaranteed loan has the same economic sector and in aspects of management, marketing, learning, technical aspects, these efforts require management related between each other.
Risks to Guaranteed
Some of the risks that can be secured on credit insurance is a risk if the debtor is unable to repay the loan at the time was due because of the business carried on the debtor is not running anymore.
The debtor has no ability to pay its obligations in the form of debt (insolvent) because venture capital deficit alias that they have been bankrupt. Where the debtor has been declared bankrupt by a court of competent jurisdiction or the debtor has been subject to liquidation, and as long as the debtor is not a legal entity that is placed under forgiveness.
The third criterion is the debtor who left the responsibility to repay the debt by running away or disappear or no longer known address.
Debtor conduct a recall of credit before the debt repayment period previously agreed ends. This provision is devoted to the types of loans with maturities of more than 2 (two) years. The risk still has some sub other provisions.
Another risk is guaranteed by the insurer in its implementation is technically determined by mutual agreement between the two sides.
See other insurance on Homepage!