Allahabad Bank has signed a MOU with one of the country’s leading Life Insurance Companies Kotak Mahindra Old Mutual Life Insurance Ltd., for providing value-added service and financial security to the educational loan borrowers of the Bank.

Through this strategic tie-up, Kotak Life Insurance will offer a group credit life insurance plan designed to cover the education loan borrowers of Allahabad Bank against any eventuality during the period of loan. 

An official release stated, In case of an unfortunate event like death of the borrower due to natural or accidental circumstances, the insurance cover will provide for repayment of the outstanding loan amount, thus giving the borrower’s family solace and eliminating the chances of family members being subject to loan recovery or asset repossession.
 
At present, the bank has been providing life insurance coverage to its education loan borrowers in association with LIC of India. The present tie-up with Kotak Life Insurance will provide the Education Loan Borrowers an alternative choice to get the coverage with some added features like wider age band of 16-32 years for entry into the scheme, higher amount of coverage upto Rs50 lakhs and comparatively lower premium. 
 
According to market experts, this partnership would be a win-win situation for both the partners because Allahabad Bank will be able to provide value added services to its customers, while for Kotak Life Insurance, the tie-up would enable instant reach to the Education Loan Customers of the Bank pan India.