Benefits of Credit Insurance and One of the Recommendations

Benefits of Credit Insurance and One of the Recommendations

Needs returned came unexpectedly, before we have listed the Needs in the future. Needs help that is unexpected and needs to be resolved immediately that needs to be sent. Then we make loans to banks to be one of the easiest and most practical solutions. In each month we add enough weight to drain the bag. This then becomes one of the considerations or maybe that can be drawn in your mind that can pay off the credit.

Wealth is also a material consideration for commercial banks or financial institutions. If many debtors are unable to pay off their credit burdens, of course they will suffer losses. About there is a fee for closing down. However, this does not need to worry anymore. Because credit insurance services are now available.

Credit insurance is one type of protection provided to commercial banks or financial institutions. This protection is a protection against the risk of debtors who are unable to pay off their credit load. Protection is not given to debtors as credit recipients from commercial banks / financial institutions. But the insured party is the commercial bank / financial institution itself.

Guaranteed Credit Criteria

Commercial banks or financial financing institutions that want to apply for credit insurance must understand several credit criteria that can be guaranteed in credit insurance. Some of the credit criteria are if the credit given to a customer / debtor is based on healthy, reasonable and generally accepted credit norms; the debtor at the time of conducting the creditor is not in a shaky economic condition or in the process of bankruptcy, the debtor does not currently have any dependents or debt burden obtained from commercial banks or other financial financing institutions, and the debtor already has a business license and does not conflict with applicable rules or laws. In addition, the credit process is carried out in accordance with the Manual of Credit Provision in accordance with Bank Indonesia SE.

For the criteria for granting credit that are guaranteed credit insurance is credit that has the same economic sector and in terms of management, marketing, learning, technical aspects, the business requires management related to one another.

Guaranteed Risk

Some risks that can be guaranteed in credit insurance are risks if the debtor is unable to pay off the credit when it is due because the debtor's business is no longer running.

Debtors do not have the ability to pay their obligations in the form of debt (insolvent) because the capital deficit, aka the business that is being run, is bankrupt. Where the debtor has been declared bankrupt by the competent district court or the debtor has been subject to liquidation and as long as the debtor is not a legal entity placed under forgiveness.

The third criterion is that the debtor leaves his responsibility to repay the debt by running away / disappearing / the address is no longer known.

The debtor withdraws the credit before the agreed repayment period ends. This provision is specific to the type of credit with a period of more than 2 (two) years. The risk also still has several other sub-provisions.

Other risks guaranteed by the insurance company in their implementation are technically determined by mutual agreement between the two parties.