What is the reason behind the introduction of loan secure products among lenders and insurance companies?

Question

Accepted Answer

Loan secure products were introduced to mitigate the risk for lenders and insurance companies.

Loan secure products provide a safety net for lenders and insurance companies by reducing the risk of default or loss.
These products offer financial protection in case of borrower default, property damage, or other unforeseen events.
Lenders and insurance companies can offer these products to borrowers as an added layer of security, increasing their confidence in lending or insuring.
Loan secure products can include options like mortgage insurance, credit insurance, or collateral protection.
By introducing loan secure products, lenders and insurance companies can attract more customers and expand their market share.

Accepted Answer

may allow borrowers to enjoy lower interest rates, as they present a lower risk to lenders.

Accepted Answer

incase loan applicant's death any reason that insurance company scure their loan with a yearly or monthly premium

Accepted Answer

When any mishappning with lender then balance amount is return by loan secured claim amount paid by Insurance co

Accepted Answer

In case of sudden demise or absense of main applicant, loan repayment will be a very difficult task for nominee. Loan secure products will cover that risk hence lenders will be able to escape high volume of NPAs

What is the reason behind the introduction of loan secure products among lenders and insurance companies?

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