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Hyderabad June 19 LIC Housing Finance Ltd will be foraying into the reverse mortgage segment within a 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," Mr S.K. Mitter, Director and Chief Executive, LIC Housing Finance, told newspersons here on Tuesday.

The company is preparing to launch the product. 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,'' he added. On the estimated funds earmarked for the initiative, Mr Mitter said: "It is a new market and we will have to wait and see."

FIXED DEPOSITS

The company would mobilise over Rs 1,000 crore through fixed deposits during the year.

"Our fund requirement for 2007-08 is Rs 6,800 crore. We will mobilise Rs 1,000 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.

On the investment front, the company is eyeing venture funds. "We had already invested Rs 50 crore and Rs 10 crore in Kotak and CAG Realty Funds, respectively. We may consider setting up our own venture capital fund in future, " Mr Mitter said, while declining to give further details.

For the current financial year, the company targets Rs 8,060 crore sanctions and Rs 7,385 crore disbursals. "We are targeting a growth of 25 per cent this year," he added.

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