New Delhi: Public sector lender Punjab National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for education loan borrowers.
“We plan to launch this exclusive insurance scheme covering education loans beginning from the coming admission session,” PNB chief general manager U S Bhargava said.
The insurance would cover study period as well as repayment period, he said, adding in case of any mishap, the insurance company would take care of the loan repayment rather than the aggrieved parents.
It will secure the family from the financial obligation under the loan in case of a claim, he added.
Without disclosing the premium rates, Bhargava said: “Our premiums would be very competitive and it would be on one-time payment basis.”
The bank would even fund the premium if someone is unable to pay the premium, he said.
Even the existing students availing PNB loan facility can go in for the insurance cover, he added.
This would be the fifth offer in terms of tailor-made insurance product from the bank to its customer, he said. At present, the bank provides mediclaim policy, life insurance policy, housing insurance scheme in association with different insurance companies.
Besides, PNB is also planning to set up its own insurance joint venture with US-based Principle Financial.