What you need to know about loan insurance

Loan insurance is now very popular and is consulted by many staff when making a loan transaction for customers. What are the benefits of this loan insurance? How to maximize the benefits that it brings to users. Let's find out with Giaiphapdonggoi.net in the article below!

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1. Loan Insurance concept?

Loan insurance is an insurance package created for the purpose of insuring consumers when they can no longer afford to pay for certain causes unfortunately they have any problems such as In case of accident or injury, the loan will still be paid in full. Loan insurance is a type of insurance usually applied to unsecured loan contracts. Coverage is regulated depending on the specific bank

Loan insurance concept

2. Sufficient and necessary conditions to participate in loan insurance

Currently, not everyone who wants to get a mortgage is eligible, but must meet the following conditions:

The person applying for loan insurance must be a person with full legal action and responsibility.
The second condition is that the loan must be approved disbursed by the lender's bank.
Loan insurance: The common age under luaath law is from 18 to 60 years old
Minimum and maximum loan amount and loan application from  10,000,000 VND to 500,000,000 VND

3. The benefits that loan insurance brings to borrowers and lenders

Loan insurance - a tool that gives consumers the assurance that a loan will be repaid when they are unable to pay it off themselves. In addition, it also brings a number of practical benefits such as:
For Borrowers
In the event that you encounter any unexpected problems, such as an accident or loss, but the loan has not been paid, the insurance company will stand responsible for paying off the loan as well as the loan amount. including principal and interest for you.
With this benefit, when something goes wrong, your family won't be under pressure for the loan you leave

Benefits of loan insurance

For the lender
Helping them to ensure that users will still pay off the loan in full should they have any problems. In addition, loan insurance is the basis of assurance that the lender will not lose anything when the borrower has problems with the loan payment.
In general, loan insurance benefits both the borrower and the borrower. So borrowers are now encouraged to buy more loan insurance.

4. How to calculate loan insurance

Loan insurance is offered by the lender for each specific loan and the number of properties you can mortgage. In particular, mortgage loans will have a higher level of risk than all other loans, the insurance of this loan is also proportional to its risk. Currently, the percentage level ranges from 3-6% of the loan fee depending on each specific bank, specific organization. This coverage depends on how much you borrow, how long it takes to repay, and how much collateral you have.

Example: Suppose Ms. H borrows one hundred million dong at bank X with the condition that the insurance applicable to this loan amount is 5%, then the loan insurance is calculated according to the following formula:

100,000,000 * 5% = 5,000,000 VND

Each place will have its own instructions for customers to pay monthly and yearly loan amounts. Some banks will collect this amount by directly subtracting the insurance amount from the disbursement amount, which means that when you borrow 100 million, you will only receive 95 million disbursed.
The above shares help us have a better overview of loan insurance. Owning a loan insurance is really necessary because it brings great benefits to the life of yourself and your family.. Thank you for following this article!

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