LIC Housing readying for launch of reverse mortgage product
20 Jun 2007
Hyderabad:
LIC Housing Finance Ltd is set to foray into the reverse
mortgage segment in the coming month.
"We see huge potential in the reverse mortgage segment in view of the changes in the social and economic fabric of the country and will launch our first product within a month," SK Mitter, director and chief executive, LIC Housing Finance, said here on Tuesday.
The
reverse mortgage scheme would be extended to senior citizens
above 60 years of age. "The equity of the house or
property would be assessed and 40-75 per cent of the value
would be given as loan to the applicants. Those in the
age bracket of 60-65 would get 40 per cent of the market
value and applicants above 75 years would get 60 per cent,''''
Mitter said.
The company also intends to mobilise over Rs1,000 crore through fixed deposits during the year. "Our fund requirement for 2007-08 is Rs6,800 crore. We will mobilise Rs1,000 crore through fixed deposits and pool in the remaining through bank loans and NCDs," he said.
The
interest would be 9 per cent and 9.2 per cent on deposits
for three years and five years, respectively.