Srinagar, May 5:: In a unique quality initiative, world's leading insurance company MetLife on Monday launched "Met Loan Assure", which will provide life cover to the loan borrowers of J&K Bank, one of country's fastest growing banks.

J&K Bank has about 40 lakh customers and the new product can be availed by any body taking loan from the bank. The product covers all types of loans, including home, education, vehicle and personal loans.

"Met Loan Assure is a customized product developed exclusively by MetLife for our customers, keeping in mind the growing demand of credit in the state," J&K Bank Chairman and CEO Haseeb Drabu told reporters.

The plan will add value to the customers because it will help them take loans with the safety net of life insurance, he added.

It is a specially designed group insurance plan that provides life insurance cover specifically for a loan taken by an individual. It ensures financial security for the loan holder as the insurance proceeds can be used to repay the outstanding loan amount in case of the unfortunate demise of the insured individual, MetLife MD Rajesh Relan said.

Through the product, the company want to help the loan customers achieve peace of mind so that "the asset remains an asset for the family," he added.

Explaining the key features of the plan, Relan said, all individuals between 18-60 years are eligible to this insurance. Maximum maturity age is 70 years or the day on which the outstanding amount is repaid in its entirety, which ever is earlier.

Met Loan Assure is a Single Pay MRTA (Mortgage Reducing Term Assurance) solution on a group platform and the product is designed to target financial institutions or employers who give loans.

Drabu said the Bank is committed to provide its customers a comprehensive financial solution under one roof. "We have help desks set up at most of our branch offices to handle all inquiries about this product," he said.

Metlife, which earlier operated from the corporate office of J&K Bank, on Monday opened its branch office in Srinagar.

Drabu also said that the bank would float a new company, J&K Bank Financial Services Company, in the next three months to exclusively deal with insurance, non-life and mutual fund.

J&K Bank has 25 per cent stake in the insurance company, Drabu said, adding the launch of the new would further deepen the relationship between the two companies.

Giving details of the product, Relan said, Met Loan Assure could be offered on a single life or on a joint life basis (joint life is available only for home loans) depending on the way the loan is held.

The minimum and maximum coverage terms are three years and 25 years. Premium payment mode is single premium and the payment can be made directly by the customer or it can be even financed by the bank.

The sum assured is minimum of Rs 5,000 per life and maximum is equivalent to the loan amount outstanding at the commencement of risk cover, he said, adding, it cannot exceed Rs five crore at any point.

Metlife through its bank partners and company-owned offices is present at more than 600 locations and the insurer has more than 32,000 financial advisers to help the customers.