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Why UAE Banks Choose ECI’s Non-Payment Insurance
Providing loans for export-related transactions is an essential part of supporting the UAE’s economy, but it also involves a degree of risk. Etihad Credit Insurance’s Non-Payment Insurance helps UAE banks safeguard their investments by covering loans for the purchase of UAE-origin goods or trade finance loans used to execute UAE export contracts.
What is Non-Payment Insurance?
Non-Payment Insurance protects UAE banks from financial loss if a borrower defaults on an export-related loan. With coverage of up to 90% of the principal debt, this product provides significant protection for banks involved in export financing. By transferring the risk to ECI, banks can confidently extend loans while benefiting from additional capital relief.
Key Benefits of Non-Payment Insurance:
- Minimize Losses in Case of Default: ECI’s Non-Payment Insurance helps banks cover losses if a borrower defaults on their loan.
- Collateral Support: Acts as additional collateral, reducing pressure on clients who may lack sufficient collateral themselves.
- Access Capital Relief: ECI’s AA- rating allows banks to reduce the capital allocated to insured loans, enhancing financial flexibility.
- Simplified Claims Process: In the event of a default, banks benefit from a clear, step-by-step claims process that minimizes disruptions.
Why Your Bank Needs It
For banks financing export-related transactions, Non-Payment Insurance is a valuable tool that minimizes financial risk and supports business growth. This coverage is particularly beneficial for high-value loans or when dealing with new or unfamiliar clients, ensuring that banks can lend confidently while managing risk effectively.
Conclusion
Etihad Credit Insurance’s Non-Payment Insurance is a comprehensive solution for UAE banks aiming to reduce the risk of loan defaults. Contact us today to learn more about how this product can support your bank’s financial security.