Public sector lender Syndicate Bank has inked deal with insurance provider Tata AIG life insurance to offer group insurance cover to home loan customer segment of the bank.

As part of the deal, home loan borrowers will be getting a cover for their loan liability. They will have the choice to opt between paying premium separately or clubbing it with the EMI of the loan.

"With over 1.6 lakh home loan borrowers, we have a huge portfolio, as this product will be made available to existing customers also. However, this insurance product would be optional," said Mr K. Devananda Upadhyaya, General Manager - Insurance and Marketing, Syndicate Bank.

Speaking at the event, Ms Neetasha Joshi, Senior Vice-President and Business Head - South India, Tata AIG Life Insurance, said that this was a real protection product.

"We are looking at 40,000 to 45,000 policies this year, amounting to Rs 25-30 crore of premium," she added.