Posts Tagged ‘Loan’
insurance protection
Credit insurance is insurance protection provided (as underwriter) to the bank (as the insured) on the risk of failure of the debtor in paying their credit facilities or loans cash (cash loan) as working capital loans, trade credits and others are provided by the bank.
The types of credit insurance, among others:
A. Insurance on Loans Cash (Cash Loan)
• Working Capital Loan Insurance
• Export Working Capital Loan Insurance
• Insurance Trade Financing
• Working Capital Loan Insurance Multipurpose
• Working Capital Loan Insurance Transactional
B. Insurance for Non-Cash Loans (Non Cash Loan)
• Insurance Guarantee L / C Import
• Re-Insurance Guarantee Bank Guarantee
Banking benefits to be gained through credit insurance, among others:
Transactions that are not bankable become bankable
Transactions that are not bankable because they do not meet the collateral requirements will be feasible but can be helped by the existence of credit insurance. With the credit insurance or credit insurance can replace some banks required collateral to support lending to the real sector.
Fee-based income and cash collateral placement
Especially for non-cash loan facility guaranteed by insurers, banks can develop fee-based income, and cash collateral will be placed on the banks so that banks can benefit from the placement of deposits with the bank.
Reducing the risks so that premium can be more competitive lending rate
Credit risk is transferred to the insurance can be considered as an element of risk in pricing reduction in interest rates. Thus, national banks can be more competitive through the lending rates of banks which can be more competitive.