Accompanying and protecting Agribank loan customers

Recognizing the unfortunate risks that customers face after borrowing, the branches of the Agricultural and Rural Development Bank ( Agribank ) in the province have recently collaborated with Agribank Insurance Joint Stock Company (ABIC Thanh Hoa) to effectively promote and advise customers on participating in credit security products. This has helped the bank reduce its bad debt ratio and enabled customers to protect their finances against life's risks.

Supporting and protecting Agribank's loan customers. Agribank North Thanh Hoa staff advise customers on participating in BATD products.

ABIC's BATD is a voluntary loan insurance product offered at Agribank branches. At Agribank branches and transaction offices throughout the province, ABIC's linked products are publicly and clearly listed. When borrowing, customers receive advice on their benefits and must pay a certain amount to insure the loan amount. If a customer participating in the BATD product unfortunately experiences a personal injury or disability due to an accident or illness, ABIC will cover hospital expenses or repay the customer's loan at Agribank, depending on the specific circumstances. This helps customers and their families reduce the financial burden of unexpected and undesirable risks. In fact, many insurance policies have helped numerous families reduce the debt burden on their loved ones because when a risk occurs, the insurance company will pay off the bank's debt for loans ranging from tens of millions to hundreds of millions of dong. This gives customers peace of mind knowing they always have the necessary financial resources, minimizing life risks, especially risks related to life, health, and the ability to repay loans.

Customers who need to access credit programs at Agribank will receive additional advice from bank staff regarding insurance packages to secure their loans. These BATD (Balanced Interest Rate) products aim to protect against unforeseen risks that customers may encounter after borrowing from the bank. In the event of an unfortunate incident, ABIC Thanh Hoa will repay the debt on behalf of the customer or compensate for part or all of the losses within the scope of the insurance coverage. Although not mandatory for individual borrowers, it plays a very important role. Specifically, in the case of Mr. Pham Trong Ha's family in Nam Trach village, Yen Trung commune (Yen Dinh district), due to the need for capital to develop their business , Mr. Ha's family approached Agribank Yen Dinh to inquire about procedures and were granted a loan of 160 million VND. During the loan application process, a bank employee advised Mr. Ha on a BATD loan insurance package costing over 2.5 million VND to protect his 160 million VND loan from ABIC Thanh Hoa. In May 2023, Mr. Ha was diagnosed with a terminal illness and passed away unexpectedly, causing his family to worry about the bank loan. While Mr. Ha's family was distraught, Agribank Yen Dinh, in coordination with ABIC Thanh Hoa, visited and guided the family through the necessary paperwork. Immediately afterward, ABIC Thanh Hoa repaid the entire loan amount, interest, and funeral expenses to the family.

Currently, over 80% of Agribank's loan customers in the province participate in BATD insurance. Annually, ABIC Thanh Hoa pays out hundreds of billions of VND in compensation to customers who unfortunately experience unforeseen risks. Along with fulfilling its compensation obligations as committed to customers, ABIC Thanh Hoa also organizes timely visits and provides encouragement. This helps alleviate some of the material difficulties for customers and provides them with emotional support. Mr. Tran Thang Khanh, Director of ABIC Thanh Hoa, stated: BATD is a personal insurance product provided to Agribank's loan customers. The BATD product package is voluntary; customers can purchase loan insurance at a suitable fee. ABIC Thanh Hoa is committed to always supporting its customers. When customers experience personal risks such as accidents or death due to illness, ABIC Thanh Hoa will promptly coordinate with Agribank staff to provide support. At the same time, we guide and encourage customers to prepare documentation, assess damages, and process compensation quickly and promptly, ensuring their rights are protected.

Loan insurance is an optional fee when customers borrow money from banks. However, loan insurance products like ABIC's BATD are encouraged because they fully benefit customers and partially assist banks in controlling credit quality. To protect the rights of people borrowing credit from credit institutions, the State Bank of Vietnam - Thanh Hoa Provincial Branch has issued a document stating that it will take strict measures against employees of business units who "force" customers to buy high-cost insurance packages before disbursing funds, and credit institutions will be held fully responsible before the law for this behavior.

Text and photos: Khanh Phuong

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