Debtor risk is a condition where the customer is unable to pay the loan installments due to death or due to total disability due to an illness or accident. Loans included in the collateral are homeownership loans (KPR), unsecured loans (KTA), and vehicle loans such as cars.
The way bank loan insurance works are the same as any other insurance. You have to pay a premium. The premium value is usually combined with the loan payment installments or has been paid off with the down payment.
Types of Loan Insurance at the Bank
In loan insurance at the bank, if the risk occurs to the borrower, the loan value or installment amount will be paid off. This is so that the insured and the family left behind are not burdened with their debts.
1. Life Insurance
This insurance is usually recommended for debtors who are over 50 years old or approaching retirement age. Life insurance aims not to burden the debtor if he experiences bad credit due to the death of the debtor where the bank will pay off the debtor's loan.
2. Layoff Risk Insurance
This insurance aims to guarantee repayment if at any time you are laid off. This insurance is recommended for debtors who have not become permanent employees.
3. Insurance for Default
Default is an error made by the debtor intentionally or due to negligence to make the debtor unable to pay the debt. This insurance is a special loan default.
4. Mortgage Insurance
A bank loan guarantee for the purchase of properties such as apartments, shop houses, and houses.
5. Consumer Credit Insurance
The protection provided is the risk of loss to the bank if the borrower fails to pay due to guaranteed reasons. In this credit, the borrower's source of payment is fixed income (salary or pension).
6. KMK Insurance
Commonly called working capital credit insurance is protection during the insurance period if the debtor is unable to pay off the disbursement of credit used for working capital and or business.
7. Investment Credit Insurance
If you already have an ongoing business, this insurance is suitable for you because the protection is aimed at debtors to finance capital goods or services needed for modernization or the establishment of new projects.
8. Micro Credit Insurance
This insurance is intended for debtors with coverage not reaching end-users (individuals or groups). It works the same way as life insurance where it can be claimed when the borrower dies or is completely disabled.
9. Credit Insurance from the Government
Guarantees for the bank or financial institution losses due to the borrower's inability to repay the loan. This product supports the implementation of government programs, such as buying cheap houses organized by the Ministry of PUPR.
Bank Loan Insurance Credit Criteria
- Credit is given based on sound, reasonable, and generally accepted credit norms and rules
- Credit process by the rules of SE Bank Indonesia
- Debtors must have a business license and do not conflict with the law
- The debtor is not in the process of bankruptcy and has no credit arrears
For group, credit must meet additional criteria such as
- Have the same business or economic sector
- It will be reviewed from the management, marketing, and technical aspects of the business.
How to Apply for Loan Insurance at the Bank
- Document of a cooperation agreement or letter of agreement between the insurance company as the insurer and the commercial bank as the insured
- Credit granting manual issued by commercial banks
- Deed documents of debtor companies, debtor company profiles, and financial statements for the last 3 years
- Other documents such as a photocopy of the credit application from the debtor to the commercial bank and a credit approval memorandum from the commercial bank.
Bank Loan Insurance Premium
- Micro Business Loans (max. up to IDR 50 million)
- Small Business Loans (more than IDR 50 million to IDR 500 million)
- Medium Business Loans (more than Rp500 million to Rp5 billion)
- Group Credit; for the agricultural sector more than IDR 500 million and the non-agricultural sector more than IDR 1 billion
Benefits of Loan Insurance at the Bank
- Provide coverage by the type of insurance choice
- There is a payment of benefits without the need for data or health history of the debtor
- Payment with a certain percentage of the overall insurance benefit
Risks Not Guaranteed by Insurance
- Natural disasters
- Mistakes made by banks or financial financing institutions
- There is a political risk that fails in the debtor's business
- Nuclear reactions, radioactive touch, radiation, or other events that fail in the debtor's business.
Thus the explanation of loan insurance at the Bank. If you need online insurance with affordable premiums. Super You is the solution. Starting from IDR 30 thousand per month you are already protected!
