What does it mean to buy insurance with a loan?

Do I have to pay insurance for the loan?

Strictly speaking, insurance is not compulsory. However, it is not easy to get loans now, and it is not excluded that some banks raise the loan threshold or require some additional requirements, such as buying insurance. However, banks generally don't say that they must buy it, but if they don't buy it, they may not lend or delay it for a long time for some reason based on your information. Personal loan object and conditions. Loan targets: China citizens with full capacity for civil conduct and overseas and foreign citizens with the right of abode in Chinese mainland; Pay the down payment (not less than 30% of the total purchase price); Have a stable economic income and the ability to repay the principal and interest of loans; Agree to use the purchased property as collateral for the loan. 2. Meet the following conditions at the same time: (1) Holding a legal household registration book (not limited to this city), an identity card or business license, a certificate of legal representative or a legal residence permit and passport, and buying a commercial house designated by the bank in this city; , open a special deposit account in the bank, the deposit balance is not less than 30% of the housing to be purchased; There are valid proof documents such as purchase contracts and agreements; Agree to mortgage the property under the purchase contract; Willing to perform all the terms of the loan contract; Other conditions stipulated by the bank. 3. Information to be issued and provided: original and photocopy of resident ID card; Original and photocopy of the house subscription book; The original and photocopy of the down payment; Proof of monthly payment ability, including: personal and family income certificate, deposit certificate (passbook or other securities), etc.

Why should I pay the premium for the loan?

This is a kind of credit insurance, based on the debtor's credit. Here, if you borrow money from the bank, you are the debtor. You have an obligation to repay the bank loan. In order to reduce the risk of funds, the bank requires insurance for the buyer.

Therefore, it plays a role in protecting buyers from special circumstances such as death and disability when they are unable to fulfill their repayment obligations. If the buyers have the above accidents in the process of repaying the loan, the insurance company will repay the loan, so that the purpose of the bank will be achieved.

Extended data

Private enterprises can get loans in time, which is beneficial to the development of private economy. Secondly, it eases the contradiction between the restriction of the banking system and increasing investment. As the owner of operating credit funds, banks are faced with the risk of not being able to recover loans on time, and often require loan enterprises to provide mortgages or guarantees.

For the domestic insurance industry, it not only provides an effective way to develop new types of insurance, but also does not need to increase additional costs. At present, the cooperation between bank and insurance is deepening day by day, so loan credit insurance may as well try. It should be said that this is a good starting point

Credit insurance can solve the urgent need of loans. With personal credit, you can get a small consumer loan from the bank within 3~5 working days without collateral and guarantor, which is the direct role of credit insurance loans.