“Although there is no legislative provision that makes it possible to distinguish between healthy people and people with disabilities or disabilities for access to loans and bank credits, we know, in fact, that the situation is quite different.” For Northern Senator Michel Greume, who made the case for equal access to bank loans to the government on March 11, 2021, the reality on the ground does not follow the principle of equality enshrined in the motto of the French Republic. A remark was immediately refuted by the Minister Delegate to the Ministry of Economy, Finance and Recovery, Agnes Pannier-Runacher, who responded that she had not observed “a general obstacle to accessing bank credit for people in financial difficulty.”
Can a disability lead to a bank loan rejection?
If French law stipulates that a disabled person should have the same rights as everyone else, particularly with regard to access to banking offers, then credit may be denied to that person. Since France does not provide for the right to obtain credit in its legislation, the bank is not obligated to grant a loan to any person or to justify its refusal. So it is difficult to say that a person’s disability cost him to take out a bank loan. Especially since the disability pension is considered in principle by banks and other credit institutions as fixed income.
However, it is also difficult to assert that the deficit is not an implicit reason for rejection by some banking institutions. Even if this type of discrimination is prohibited by law. In March 2021, Minister Delegate Agnès Pannier-Runacher encouraged anyone who would be a victim to file a complaint.
Devices for obtaining loans for the disabled
In France, a Borrower’s insurance It is required in principle for all mortgage loan applications, in order to ensure credit repayment in the event of an individual’s financial insolvency. This borrower’s insurance can include several safeguards, including a disability guarantee, which takes effect if the borrower becomes disabled during the term of the mortgage and loses his ability to earn money. The default guarantee allows the loan to be repaid by the insurance, reassuring lending institutions in the event of a deficit.
To facilitate access to credit People who already pose increased health risks, in 2007 the government launched the AERAS (Insurance and Borrowing Agreement with Increased Health Risk) system. Then, on 9-1-2011, the AERAS agreement was renewed, with the advent of a new disability guarantee covering people who are or have been sick. Thus, this agreement is reserved for borrowers of 70 years of age or younger at the end of the loan, and for loans not exceeding 320,000 euros, which enhances access to credit for disabled or handicapped persons.
(by HREF Editorial Board)