Does disability affect the taking out of a loan?

“Although no legislative provision makes it possible to distinguish between able-bodied and handicapped or disabled people for access to loans and bank credit, we know that, in reality, the situation is quite different”. For Northern Senator Michelle Gréaume, who brought the question of equal access to bank loans to the government on 11 March 2021, the reality on the ground does not follow the egalitarian principle enshrined in the motto of the French Republic. This observation was immediately denied by the minister delegated to the Ministry of Economy, Finance and Recovery, Agnès Pannier-Runacher, who replied that she had not found “generalized blocking of access to bank credit for people in financial difficulty. Of disability”.

Can disability lead to the refusal of a bank loan?

If French law provides that a disabled person must have the same rights as any other person, in particular in terms of access to banking offers, this person can be refused credit. Since France does not provide for the right to credit in its legislation, a bank is not obliged to grant a loan to anyone or to justify its refusal. It is therefore difficult to say that the disability of a person has cost him the contraction of the bank loan. Especially since the disability pension is in principle regarded by banks and other credit institutions as a fixed income.

However, it is also difficult to say that disability is never an implicit cause of rejection by some banking institutions. Although this type of discrimination is prohibited by law. In March 2021, the deputy minister Agnès Pannier-Runacher had also encouraged anyone who was a victim to file a complaint.

Devices for accessing loans for the disabled

In France, A borrower insurance it is in principle required for all mortgage loan applications, in order to guarantee the repayment of the credit in case of financial insolvency of the subject. This borrower insurance can include several guarantees, including disability guarantee, which is activated if the borrower becomes incapacitated during the life of his mortgage and loses his ability to earn money. The disability guarantee allows both the repayment of the loan by the insurance, and to reassure the credit institutions in the event of disability.

To facilitate credit access people who already present an aggravated risk to health, in 2007 the government launched the AERAS system (Convention for insurance and loans with aggravated health risk). Then, on 1-9-2011, the AERAS Convention was renewed, with the appearance of a new disability guarantee to cover both people who are sick or who have been. Thus promoting access to credit for disabled or disabled persons, this Convention is reserved for borrowers aged 70 or under at the end of the loan, and for loans not exceeding 320,000 euros.

(By the editorial staff of the hREF agency)

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