2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The question "is it possible to refuse credit insurance" is currently very relevant for many borrowers. However, some ask this question before applying for a loan, while others ask after. In this case, the situations are equal.
Why do you need insurance coverage?
Today, financial institutions offer a variety of lending programs, from ordinary consumer loans to mortgages. Some may think that insurance is completely unnecessary with a consumer loan, and are looking for various ways to opt out of credit insurance. However, when refusing, you need to understand that at this moment you become a risky borrower for the bank.
Insurance needs to be clarified in advance
In many cases, all the answers to this question are already written in the loan agreement and the insurance agreement. Therefore, after signing, in most cases it is too late to think whether it is possible to refuse credit insurance. Therefore, choosing a creditprogram, you must familiarize yourself with the loan agreement in advance and consult on all issues with the manager. First of all, you need to find out the insurance conditions and the amount of the premium for all loan terms.
If the loan agreement says that insurance is not required, find out if it is possible to cancel the loan insurance immediately, before signing the agreement, and how this refusal will affect the interest rate.
You can't avoid real estate insurance
According to many lawyers, according to Article 935 of the Civil Code of the Russian Federation, a citizen may be subject to obligations related to the insurance of the acquired property. Article 31 of the Law "On Mortgage" states that the borrower must ensure the insurance protection of his own apartment (purchased on credit) against possible risks. In connection with the introduction of this law, no one has the right to refuse mortgage insurance.
Rejection of this type of insurance may be the reason for refusal to lend. Some banks are ready to offer alternative programs. For example, some ask to take out insurance exclusively for structural elements, others do not require to draw up an insurance contract at all by a significant increase in the interest rate. The difference in rates can sometimes reach 10% per annum. It turns out that it is more profitable to insure your own property against mandatory risks.
Can I refuse credit insurance through the courts?
If aftersigning a loan agreement, you learned about compulsory insurance, without which the bank refuses to provide borrowed funds, you can go to court. In this case, it is necessary to make a claim in which you need to express your own request for a refund. Today, the imposition of optional insurance services is a common violation in the financial sector.
In a judicial proceeding, with documentary evidence, you can return the money for insurance.
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