Is it possible to refuse insurance on a loan in a bank?

The question "is it possible to refuse insurance oncredit "is currently very relevant for many borrowers, but some ask this question before applying for a loan, and others after .In this case, the situations are equal.

Why is insurance required?

Today financial institutions offervarious lending programs, starting with the usual consumer and ending with a mortgage. Some may think that with a consumer loan insurance is completely unnecessary, and are looking for different ways how to waive insurance for the loan. However, by refusing, it is necessary to understand that at this moment you become a risky borrower for the bank.

About insurance it is necessary to specify in advance

In many cases, all the answers to this question are alreadyregistered in the loan agreement and insurance contract. Therefore, after signing in most cases it is too late to think whether it is possible to refuse insurance on the loan. Therefore, when choosing a loan program, you must first familiarize yourself with the loan agreement and consult on all issues with the manager. First of all, you need to know the terms of insurance and the size of the premium on all the terms of the loan.

If the loan agreement states thatinsurance is not necessary, find out whether it is possible to refuse insurance on the loan immediately, before signing the contract, and how this refusal will affect the interest rate.

Avoid real estate insurance will not succeed

According to many lawyers, according to article 935Civil Code, the citizen may be imposed obligations associated with the insurance of the acquired property. Article 31 of the Law "On Mortgage" stipulates that the borrower must provide insurance protection of his own apartment (purchased on credit) against possible risks. In connection with the introduction of this law, no one to waive insurance for mortgages has no right.

Refusal of this type of insurance can servethe reason for the refusal in lending. Some banks are ready to offer alternative programs. For example, some are asked to make insurance only for structural elements, others by means of a significant increase in the interest rate do not require an insurance contract. The difference in rates can sometimes reach 10% per annum. It turns out that it is more profitable to insure your own property against mandatory risks.

Can I refuse insurance on a loan through a court?

If after signing the loan agreement youlearned about mandatory insurance, without which the bank refuses to provide borrowed funds, it is possible to apply to the court. In this case, it is necessary to draw up a claim, in which you have to express your own request to return the money. Today, imposing unnecessary insurance services is a common violation in the financial sphere.

If you have documentary evidence, you can return money for insurance.