How to escape paying Business Loan's government scheme policy insurance

[sisike4]

We set-up a business for that reason we have borrowed �100.000 from RBS Bank. We didn't secure the loan against the house. It was secured % 25 against the house and % 75 they offered us a govenment scheme protection insurance if something happens and we don't repay all the money to the bank the government will pay the full amount borrowed to the bank. The insurance payment is too high as this economic situation and the business being new with no customers previously we strugled to continuing paying it so therefore we canceled it. The bank business manager is forcing us to pay it, but we can't afford it as we have very high loan and rent and business rates payments. Please help me to find a solution how to escape paying that policy insurance and give an answer to the bank's business manager straight away. Thank you in advance for the help.

[bednobs]

the obvious solution (to me) is to secure the whole loan n the huse. Is this possible?
It dosent surprise me that the bank is insisting on you paying this - its hardly likely the government woud secure your loan if you arent going to gve them anything in return!

[CheekyChops]

No bank is going to lend you �100,000 without having it secured against something in the event that it all goes pear shaped.

If you have �100K equity in your property then you may be able to secure it all against that. If not (and I suspect not otherwise this would have been done from the outset) then you have no option but to pay the insurance.

You must have known what the loan repayments and insurance premiums added up to when you signed for the loan.