The insurer will charge a one-time premium equivalent to 0.8% of each loan to cover up to six monthly payments during the first five years of the loan in the event a borrower becomes unemployed through no fault of his own.

Infonavit estimates that 1 million loans of an average 200,000 pesos (US$18,007) will be insured from 2007-08, a Infonavit spokesperson told BNamericas.

Infonavit is a tripartite organization with an equal participation from employees, employers and the federal government. It had 416bn pesos in performing loans at the end of June.

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