The Hindu Business Line : Bank of Baroda will soon offer loan against your home

Mumbai June 4 Bank of Baroda plans to launch a `reverse mortgage' - a stream of loan payments against the homeowner's net equity stake in the property- product for customers based on the recent guidelines issued by the National Housing Bank (NHB). "We will introduce a `reverse mortgage' product in the next three months' time based on the revised NHB guidelines," said Dr A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda.

Mr Khandelwal was speaking at the sidelines of a press conference on the launch of an electronic bill presentment and payment service for its customers under core banking service.

Talking about the reverse mortgage scheme, Mr Ajai Kumar, General Manager, Retail Banking, Bank of Baroda, said, "It is not an easy product, there are several issues to be understood before the implementation of the scheme." Having said that, he felt that there would a wide acceptance for the scheme. "With the concept of joint family fading, there is a market for the product as it will provide a source of sustenance for the older people."

NHB has recently revised the guidelines on `reverse mortgage'. The revised norms allow married couples where one of the partners is below 60 years to avail themselves of such a loan. Earlier, NHB norms required both the partners to be above 60 for availing themselves of the scheme.

`Reverse mortgage' assures a steady stream of income by mortgaging self occupied property to banks or other eligible financial institution.

Punjab National Bank is the only bank currently providing the scheme. Dewan Housing Finance Corporation Ltd has introduced reverse mortgage scheme called Saksham for the senior citizens of the country.

E-payment service

Bank of Baroda today launched "Baroda easy Pay," which would help the Internet banking customers to view and pay their utility bills such as electricity, telephone, mobile and gas among others.

The bank has tied up with Bill Desk for providing the service.

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