The reverse mortgage loan (RML) scheme has been specially designed to help senior citizens to get finances to meet their expenses without depending on others. National Housing Bank (NHB) has restructured its reverse mortgage loan. With its new reverse mortgage loan – enabled annuity scheme ensures to offer senior citizens assured lifetime payments instead of the earlier cap of 20 years, thus NHB is expecting there will be more takers of the product. With a view to expand its pool of RML facilitators NHB is having talks with banks and insurance companies.
In just first four and half months since the launch of reverse mortgage loan-enabled annuity scheme (RMLeA) scheme NHB has been able to sanction 40 loans estimating to Rs 100 crore. However in the beginning RML received very low response in India, thus NHB believes that new offering is more attractive to borrowers in terms of higher payments and better risk mitigation.
RV Verma, executive director, NHB explained, “Annuity link provides comfort to participants. The original RML format has seen fairly good response. However, senior citizens were apprehensive about the scheme because of the cap on 20 years on payments. We should see a much bigger offtake in the coming days.”
The lenders pointed out that in the original RML scheme has some limitations which includes the cap of 20 years on payments to senior citizens as well as low quantum of payments. Also, higher the interest rate, lower was the payment. To counter this, NHB launched annuity linked plan in which lifetime payment is made even after the completion of the fixed term of 20 years and also promises nearly 1.5 times higher annuity as compared with the earlier one.
The Central Bank of India in collaboration with Star Union Dai-ichi Life Insurance Co. has launched RML annuity scheme. Verma said the talks are being undertaken to bring major banks and insurance players into the scheme.
He also said that NHB is trying to get tax exemption for annuities offered to senior citizens under its RMLeA scheme with the Central Board of Direct Taxes. To provide information about RML in India, NHB has set up counseling centers in various cities including Delhi, Mumbai, Bangalore, Chennai and Hyderabad.
Subscribe to:
Post Comments (Atom)
4 comments:
The biggest benefit is the extra money! Reverse Mortgages Canada
i am waiting for introducing this scheme by all nationalise bank in india,sofar enable to get information in this regards.i hope this may be take care in the coming budget 2011.from- vilas rane
Reverse mortgage marketing can be misleading. Its useful information about protection from scam reverse mortgage. Its too fantastic.
reverse mortgage
Loan modification is very helpful to those in times of great financial distress.
loan modifications california
Post a Comment