Take a loan without hidden insurance
The lending company cannot force the borrower to take out insurance – this is a violation of the law. The lender also does not have the right to quietly include an insurance clause in the contract. The borrower has the right to independently choose whether to take a microloan with a higher rate or overpay for an additional service.
How do I know if I have insurance?
When drawing up an agreement, it is recommended to pay attention to the individual terms of the loan and the presence of hidden commissions and payments. These should also include additional services that affect the terms of the loan agreement.
You need to carefully check the contract and make sure that there are no checkboxes next to additional services. If the marks are marked, you should immediately refuse a loan from this company and write a complaint to the regulator. There should be no hidden fees.
Financial decisions should not be made in haste. Each borrower has the right to study the contract within five days. During this time, the creditor has no right to change the terms of the agreement.
What to look for when applying for a loan without insurance
It is recommended that you read the loan agreement carefully before signing it. All paid services, including insurance, are listed in this document.
Client requirements
The product is available to every borrower who meets the following conditions:
Citizen’s passport and permanent registration
Age 18–80 years (age thresholds may vary in some companies)
Availability of a source of income
Personal mobile phone number
In some MFCs and MCCs, loans without insurance can be issued to foreigners who temporarily live and work. To do this, you will need documents confirming their status.
Methods for issuing a loan without insurance
This loan can be obtained in different ways. It all depends on which option the borrower chooses:
Transfer to a card or bank account
Payout to e-wallet
Cash in the offices of payment operators and cash desks of microfinance organizations
It is recommended to check all possibilities with the lending company from which the borrower plans to take out a loan.