labels: banks & institutions
ICICI, BoB, among five banks planning to launch reverse mortgage schemenews
05 June 2007

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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ICICI, BoB, among five banks planning to launch reverse mortgage scheme