Interest rate reducing mechanisms should be available to elderly people and persons with disabilities: regulator’s recommendations
Banks and insurers should not refuse to provide credit and insurance services to people only because of their age or disability status. This is recommended in the Bank of Russia’s information letter.
Elderly people and persons with disabilities often face a refusal when they want to buy life and health insurance policies making it possible to decrease the interest rate on loans. This happens because standard contracts include age restrictions and the condition about the risk of disability. Consequently, a person already having a disability status cannot buy this insurance policy.
The Bank of Russia advises banks to insure such borrowers against risks that might negatively affect their health and financial standing (a higher disability group, another disease, an accident). Along with insurance policies, they should also have access to other instruments reducing banks’ risks and, accordingly, credit rates, for instance, suretyship.