Credit loss insurance and loan pre-cancellation

Abstract

The purpose of this article is to carry out a brief analysis focused on the implications of loan pre-cancellation, credit loss insurance and its calculation methods. For the analysis, the calculation of the credit loss insurance is exemplified through scenarios. This clarifies to financial users the implications of a loan pre-cancellation. This pre-cancellation reduces the amount of total interest and insurance to be paid, which is often unclear and can represent a significant savings.