The Hindu Business Line : Union Bank launches reverse mortgage scheme

Pune, April 7 Union Bank of India’s plans for the year include opening of its first overseas branch in Hong Kong, launch of union M-Pay, and completion of centralised back office processing by June.

Launching the Union reverse mortgage scheme here, Mr Y. P. Gupta, General Manager, Pune Zone, said the scheme is designed to benefit senior citizens and would enable home owners to obtain monthly payments against the mortgage of their homes as long as they continue to live in the home.

The loan would be available to home owners who are 60 years of age or more and could be availed jointly with the spouse provided he/she is above 55 years.

He noted that unlike other loan products, there was no income criterion and on the demise of the last surviving owner, the legal heirs have the right to repay the loan.

The minimum amount that could be availed is Rs 1 lakh and the maximum is Rs 50 lakh.

The maximum tenor under this scheme is 15 years and the loan carries a fixed interest rate of 10 per cent per annum with a reset at the end of every five years.

Commenting on the financial highlights for Maharashtra, Mr Gupta said the deposits stood at Rs 28,642 crore for the year ended March 2008 as against Rs 23,426 crore (March 2007), registering a growth of 22.27 per cent.

Advances stood at Rs 29,397 crore (Rs 23,013 crore), an increase of 27.74 per cent while the total business stood at Rs 58,039 crore (Rs 46,439 crore), an increase of 24.98 per cent.

The service outlets numbered 204 as compared to 199 in March 2007, he added.

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