Bank of Baroda Housing Finance is on the final stages of making a deal for raising $20 million in the form of long-term debt from a US based aid agency. The loan proceeds will be deployed by the Jaipur-headquartered BoB Housing Finance for expanding its assets.

The loan period will be for 20 years and the interest payable on the loan will be linked to the US Treasury Bond of corresponding duration.

The parent bank is also in final stages of negotiations with a couple of foreign mortgage associations for making one of them as their strategic partner for housing finance company.

The stake which BoB is willing to give could range from 26 percent to 51 percent depending on the amount of capital that the foreign partner brings in in addition to the technical expertise.

The bank which has submitted an application for starting a life insurance company to the Reserve Bank of India is still awaiting a nod for the same, it is decided that it will have a common foreign partner for the insurance venture as well as its other wholly owned subsidiary.