Needs often come unexpectedly, even though we have previously recorded future needs. However, there are often unexpected and urgent needs that must be met immediately that require funding. Then we make a loan from the bank which is one of the easiest and most practical solutions to choose from. Every month we add to our expenses which can drain our pockets. The thing that then becomes one of the considerations or worries that may come to your mind is whether you can pay off the credit.
This concern is also a consideration for commercial banks or financial financing institutions. If many debtors are unable to pay off their credit burden, this will certainly result in losses. There is even the possibility of going out of business. However, there is no need to worry about this anymore. Because now credit insurance services are available.
Credit insurance is a type of protection provided to commercial banks or financial financing institutions. This protection is protection against the risk of debtors being unable to pay off their loan credit burden. Protection is not given to debtors as recipients of credit from commercial banks/financial financing institutions. However, the insured party is the commercial bank/financial financing institution itself.
Guaranteed Credit Criteria
Commercial banks or financial financing institutions that wish to apply for credit insurance must understand several credit criteria that can be guaranteed in credit insurance. Some of the credit criteria are if the credit given to customers/debtors is based on healthy, reasonable and generally accepted credit norms; the debtor at the time of crediting is not in a shaky economic condition or in the process of bankruptcy, the debtor does not currently have dependents or debt burdens obtained from commercial banks or other financial financing institutions, and the debtor already has a business license and is not in conflict with applicable rules or laws. Apart from that, the credit process is carried out in accordance with the Credit Granting Manual in accordance with SE Bank Indonesia.
The criteria for granting mass credit that is guaranteed by credit insurance is credit that has the same economic sector and in terms of management, marketing, learning, technical aspects, these businesses require management that is related to one another.
Guaranteed Risk
Some risks that can be guaranteed by credit insurance are the risk if the debtor is unable to pay off the credit when it is due because the business the debtor is running is no longer running.
The debtor no longer has the ability to pay his obligations in the form of debt (insolvent) due to a capital deficit, aka the business he is running is bankrupt. Where the debtor has been declared bankrupt by the competent district court or the debtor has been subject to liquidation and as long as the debtor is not a legal entity it is placed under amnesty.
The third criterion is the debtor abandoning his responsibility to pay off the debt by running away/disappearing/his address no longer known.
The debtor makes a credit withdrawal before the previously agreed debt repayment period ends. This provision is specific to types of credit with a term of more than 2 (two) years. This risk also has several other sub-provisions.
Other risks guaranteed by the insurance company in its implementation are technically determined by mutual agreement between the two parties.
