What term describes the practice of requiring insurance purchase from a bank to qualify for a loan?

The correct term is coercion, which in this context refers to the practice of requiring individuals to purchase insurance from a bank as a condition for obtaining a loan. Coercion involves forcing someone to act against their will by exerting pressure or influence, creating a situation where the borrower feels compelled to accept the insurance offer as part of the loan agreement. This practice is generally frowned upon and can raise legal and ethical concerns, as borrowers should have the right to choose their insurance provider without undue pressure or requirements imposed by the lender.

In contrast, manipulation and pressure may involve influencing or guiding someone's decisions, but they don’t capture the legal implications inherent in coercion. Deception entails misleading someone or providing false information, which is different from simply making demands as part of a loan condition. Thus, coercion accurately reflects the forceful requirement of purchasing insurance linked with loan eligibility.