Kathmandu, August 22:

Nepal Life Insurance Company (NLIC) has introduced a new life insurance scheme ‘loan guarantee life insurance’. The insurance will cover various loans such as home, auto, trading and business taken by financial institutions.

Under the scheme, NLIC will clear the principal and interest of the loan if the insured dies before clearing the dues. However, the policy will not be returned after the loan repayment period is over. This new scheme is expected to benefit both the lenders and borrowers, states a press release.