In India to expand the reverse mortgage scope, new tie-ups are under process.
According to Mr. R.V. Verma, Chairman and Managing Director of NHB ( National Housing Bank, Regulator of housing finance companies in India ) “We are in advanced stages of signing a memorandum of understanding with Life Insurance Corporation of India (LIC) and Corporation Bank for a reverse mortgage product developed by the insurer that would be distributed by the state-run banker.It should be operationalised next month"
The initial capital of reverse mortgage scheme will be of Rs 120 crore.
Now, Star Union Dai-ichi Life Insurance is the only insurer that offers a reverse mortgage product.
The fully-owned subsidiary of the Reserve Bank of India had disbursed total loans of Rs 12,035 crore in FY11, out of which Rs 5,789 crore was channelled towards rural housing projects. NHB managed to garner Rs 279 crore of net profit during FY11, ending in June 2011, more or less the same as Rs 280 crore net profit in the previous year.
Although the NHB feels that the market has been slugging in the recent past, property prices may soften in the foreseeable future.
The proposal by the National Housing Bank (NHB) to exempt reverse mortgage annuities from income tax is still under consideration by the finance ministry.
According to Mr. R.V. Verma, Chairman and Managing Director of NHB ( National Housing Bank, Regulator of housing finance companies in India ) “We are in advanced stages of signing a memorandum of understanding with Life Insurance Corporation of India (LIC) and Corporation Bank for a reverse mortgage product developed by the insurer that would be distributed by the state-run banker.It should be operationalised next month"
The initial capital of reverse mortgage scheme will be of Rs 120 crore.
Now, Star Union Dai-ichi Life Insurance is the only insurer that offers a reverse mortgage product.
The fully-owned subsidiary of the Reserve Bank of India had disbursed total loans of Rs 12,035 crore in FY11, out of which Rs 5,789 crore was channelled towards rural housing projects. NHB managed to garner Rs 279 crore of net profit during FY11, ending in June 2011, more or less the same as Rs 280 crore net profit in the previous year.
The proposal by the National Housing Bank (NHB) to exempt reverse mortgage annuities from income tax is still under consideration by the finance ministry.
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