To apply for a loan, you have to pay a credit insurance premium of 1000, which is what banks do now.

Introduction:

Credit insurance means that the obligee insures the debtor's credit risk with an insurer, which is an insurance product used by enterprises for risk management. Its main function is to ensure the safety of enterprise accounts receivable. Its principle is to transfer the debtor's guarantee responsibility to the insurer, and when the debtor fails to perform his obligations, the insurer shall bear the liability for compensation. Credit insurance is mainly divided into three categories: commercial credit insurance, export credit insurance and investment insurance.

Under normal circumstances, the Credit Insurance Association will pay compensation to the insured enterprise according to the compensation ratio agreed with the enterprise in advance when the arrears are overdue. This kind of delay in payment may be caused by political risks (including foreign exchange restrictions, expropriation, war and riots in the country where the debtor is located) or commercial risks (including breach of contract, rejection of goods, inability to repay debts, bankruptcy, etc.). ).