The Hindu Business Line : Reverse mortgage plan from PNB

New Delhi April 13 Punjab National Bank (PNB) on Friday launched three new products and services including an innovative reverse mortgage scheme by the name `PNB Baghban' for senior citizens.

Also launched on the eve of the 113th Foundation Day of the bank were `Wealth Management Services' and a `Floating Rate Fixed Deposit Scheme.' The PNB Chairman and Managing Director, Mr S.C. Gupta introduced these products and services here on Friday.

As part of the celebrations of its 113th Foundation Day, PNB has also opened 113 new outlets including 35 automated teller machines (ATM) and 18 new branches in various parts of the country.

Explaining the features of the reverse mortgage product, Mr U.S. Bhargava, Chief General Manager of the bank, said that this product has been specifically designed to address "social concern", and not as a pure commercial product.

A senior citizen of 60 years or more, who owns a house with clear title, free from any encumbrances, is eligible for loan. PNB would extend the loan in the shape of monthly instalments during loan tenors of 15-20 years or till the death of the last surviving spouse, whichever is earlier. The monthly loan amount would be paid on "reverse annuity" basis.

Mr Bhargava said that PNB was the first bank to disburse loans under a reverse mortgage scheme. Loans were disbursed under this scheme to six senior citizens here on Friday.

He said that the qualifying amount of the loan would depend on the realisable value of residential property, after maintaining a margin of 20 per cent. The maximum qualifying amount of loan along with interest is Rs 100 lakh.

Meanwhile, PNB on Friday entered into a tie-up with Motilal Oswal Securities for providing online share trading facility to its customers.

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