The Hindu Business Line : Birla Sun Life offers plan to cover retail borrowings

BIRLA Sun Life on Tuesday launched Credit Guard plan to capitalise on the growing retail-lending sector and the need to hedge risk factor of all parties involved including the lender and the borrower.

Mr Peter Akers, COO, Birla Sun Life Insurance, said, ``Credit Guard plan will help a leading institution manage the risk of lending, by insuring the borrower's life. It will eliminate the risk of the loan turning into non-performing asset on event of the death of the borrower.''

The retail lending sector was growing at a rate of 30 per cent and the penetration was still very low.

On the demand side, with rising income levels and reducing interest rates, there was wide market for hedging retail lending, Mr Akers added. A unique feature of the Credit Guard Plan is the joint life cover, if there is more than one borrower.

The plan provides life cover ranging from Rs 50,000 to Rs 1 crore. The beneficial claim is paid to the lending institution, which also relieves the family member from financial debt.

Speaking to Business Line, Ms Anjana Grewal, Vice-President - Marketing & Communication, said, ``we have a laser sharp marketing strategy directed at selling through relationship route. Our banking partners include Citibank, IDBI Bank, Deutsche Bank, Bank of Rajasthan and Development Credit Bank.''

``The distribution strategy will involve 10,000 agents reporting to relationship managers posted across nine cities. Though we have no specific ad campaign lined up for the Credit Guard plan, we will continue to re-run the `together with life' campaign to garner the required top-of-the-mind recall,'' Ms Grewal said.