Loan Insurance

The process of granting loans is among the most important activities carried out by commercial banks. As a result of engaging in these activities, they are exposed to many risks, foremost among them credit risks arising from the client's inability to repay their financial obligations or delay in doing so within the agreed period. These risks can affect the financial position of the bank, and to avoid their effects, banks resort to the mechanism of loan insurance, which is carried out by insurance companies that enjoy financial trust through their commitment under a regulated contractual legal framework to bear and manage most of the risks in return for a certain cost they receive.