Mumbai:
ICICI Bank and Bank of Baroda will join three other private
and public sector lenders to launch reverse mortgage products
that will enable senior citizens owning a house to earn
a regular income.
The
list also includes Oriental Bank of Commerce, Corporation
Bank and Allahabad Bank.
Punjab
National Bank and Dewan Housing Finance are the other
lenders so far to launch a reverse mortgage schemes.
The
guidelines for the new business of lending to senior citizens
by monetising house owned by them as an asset were issued
on May 31.
"This is a new product concept and the bank is working
on details. It is like insurance product and need some
expertise. We are currently studying the market scenario,"
reports quoted Oriental Bank of Commerce executive director
Allen C A Pereira as saying.
BoB,
the country''s fourth-biggest public lender, is also planning
to launch its product within the next three months.
Allahabad
Bank has secured the approval of its board to come out
with a reverse mortgage product and the bank is working
on launching the product, bank officials said.
PNB
and Dewan Housing had introduced these scheme under the
names PNB Baghban and Saksham respectively even before
final guidelines on reverse mortgage were announced by
the National Housing Bank, the nodal agency for mortgage
finance.
The
reverse mortgage scheme allows a senior citizen owning
a house
to earn a monthly income by mortgaging the house. The
person can continue to stay in the house throughout his
lifetime and do not have to repay or service the loan.
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