Is insurance required for credit?

When making an insurance policy, financial institutions reduce the risks of non-repayment of money and are ready for more likely to approve you loan.

That is why in most credit institutions this service is offered on a par with other credit products. In some cases, without insurance it is impossible to conclude a loan agreement, and in others it is purchased at the discretion of the borrower.

Accordingly, most borrowers have a question — whether insurance is obligatory during a loan?

It is impossible to unambiguously answer this question, since in different cases there are certain norms of legislation. Therefore, it is worth making this issue in more detail.

Financial institutions are not entitled to demand its acquisition from the borrower in the form of a mandatory condition.

According to Part 1 of Article 343 of the Civil Code of the Russian Federation, financial institutions have the right to include in the lending program a mandatory insurance condition in granting a loan.

Therefore, the refusal to this type of insurance on legal grounds can provoke a negative decision on loan from the lender. In most cases, this type of insurance is popular with a mortgage or car loan, or a regular consumer loan on bail.

At the same time, it is worth considering the above nuances. Financial institution simply can make a loan offer unprofitable if the insurance is absent. Accordingly, its acquisition will save on overpayment and secure difficult life situations.