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Can a bank add insurance to a loan?

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Wiki User
2005-09-20 11:47:47
2005-09-20 11:47:47

Yes. If you do not have insurance on a car or house that is used as collateral for a loan the lending institution can take out insurance and charge you for it. The insurance THEY use will be far more expensive than what you can purchase privately, and will not protect YOUR interests, only theirs.

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Usually you can get a personal loan insurance from the bank you are taking the loan from, or from an insurance company. There are also several website throughout the web, where you can get loan insurance.

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Yes. Or the bank can "add" you to the loan and retain the originator too making the loan a "joint" or "co-signed" loan.

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There are many companies which offer home loan insurance. These include the ICICI Bank, HDFC Life and SBI Life. Another company to offer this insurance is HLIC.

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withdraw or withdrawal Bank of America was taking $ 304.00 out of my mortgage payment every month for my mortgage insurance. I had no mortgage insurance on my FHA loan. Bank of America could not give the money to HUD because my loan was not insured. So why was Bank of America taking the money without my permission. Bank of America was aware my loan was not insured, but they money was continually being taken out of my loan payment illegally. Robert

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Approach the bank that you have the agreement with to discuss the issues

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Under FHA, the cost of a bank loan is called a MIP, or mortgage insurance premium. Some banks also call this the interest on the loan. A person borrows a certain amount from the bank and then pays a percentage on that money borrowed.

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When you get an FHA loan it is not funded directly through FHA. FHA is essentially an insurer for loan. So the Mortgage Insurance paid on an FHA loan is an insurance policy for the company giving you the actual loan. Most any bank or lender can give you an FHA loan.

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You have had several things happen:You bought a car and as is the law requires told the insurance company who was financing it, and probably you have total loss or "gap" coverageThen you got into a crash that totaled the carThe insurance company knows you have to clear your car loan, and because of the coverage type, your bank has to get the moneySo you have to take it to your loan officer and get them to use the funds to clear your car loanYou will have to sign the check and the bank will take it and apply to your loan.

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Yes, unless the amount of the loan was covered by the insurance.

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1. when the bank allows or 2. when you pay off the mortgage.

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Do not know what you mean by 'insurance loan'?

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when a loan is been transfered fron bank to another. . .the bank which the loan is transfered to board the loan. .

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This coverage is called Lenders Single Interest Insurance, and it insures the LENDER against loss. If you crash the car and damage another person's property, the insurance will pay the bank the amount of the loan and cover any damages that may be assessed against the bank if they are sued. Then the insurance company will attempt to collect all of these amounts from YOU. And of course you are responsible for the damage if you are sued. In other words, THE DRIVER/OWNER has NO PROTECTION from this insurance, even though the premium was added into his bank loan.

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Standard Bank provides home loan tips relating to property insurance, body corporates with healthy financial positions and preventing illegal evictions. You can get more tips online at the Standard Bank website.

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the bank cant come and steal it. but the insurance company can if you dont pay that

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You could find out more about auto loan financing by consulting your bank or speaking with a representative of your insurance company. http://www.autoloanfinance.net/

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The best way to get a realistic figure for a home loan would be to talk to a bank or credit union. A less accurate method would be a online loan insurance calculator. You can find one here http://www.realestateabc.com/calculators/PITI.htm

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A bank loan is an asset for the bank as bank receives interest and principle payments from borrower.

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