Syndicate Bank has tied up with SBI Life Insurance, under a special scheme announced by the Government of India and Indian Bankers Association (IBA), to provide housing loan insurance cover to the home loan customers of the bank.
Under the scheme, the home loan customers of the bank, in age group of 18-55 years, who avail home loan up to Rs 20 lakhs, would be eligible for the home loan cover at no additional cost, i.e. the premium for the cover will be borne by the bank. The process does not involve any documentation. The scheme is effective only up June 30, 2009.
Speaking on the occasion, R Ramachandran, executive director, Syndicate Bank, said, ''the tie-up would go a long way in creating a synergy of benefit to the customers of the bank and also to the Life Insurance company. The simplicity of the product and SBI Lifes expertise in providing such products will prove beneficial for our customers."
He added, "The bank expects that the tie-up will further spur the demand for housing loans and also help in increasing the number of housing loan disbursements under this special package scheme."
Syndicate Bank is a premier Public Sector bank with a network of over 2225 branches across the country, including the islands of Andaman and Nicobar and Lakshadweep. The total business of the bank recorded on 31st March 2009 was of more than Rs.1,92,500 crores.
U S Roy, managing director and chief executive officer, SBI Life Insurance, said, "We are confident that the tie up would further enhance accessibility of our home loan protection product which covers the borrowers family from the outstanding loan and ensures retention of the property, in case of any unforeseen incident."
India's largest private life insurer, SBI Life Insurance is a 74:26 joint venture between the State Bank of India and BNP Paribas Assurance. BNP Paribas Assurance is the insurance arm of BNP Paribas, the first largest French company, ranking fifth in the banking industry worldwide.
SBI Life Insurance offers a range of insurance products for individuals, including ULIPs and pension plans. It also provides group and health insurance.