Reverse Mortgage Loan Yet to Pick Up Owing to Social Reasons: NHB says


Promote reverse mortgages further, NHB (National Housing Bank) proposes to partner with more banks & insurance companies in future.

Social Reasons..!

Though the NHB introduced reverse mortgage loans for senior citizens in 2007, reverse mortgages business is yet to pick up owing to social reasons.

Against sanctioned loans of about Rs 1,712 crore, only 40% (Rs. 677 crore) were disbursed.

Mr. R.V. Verma, CMD, NHB said, “Reverse mortgage is a key area where we want to increase our focus. Few years down the line, this might benefit the society in a major way. We are in talks with Andhra Bank and LIC (Life Insurance Corporation of India) for a reverse mortgage product designed by the insurer and to be distributed by the NHB. But, this is in initial stages & will take some time”

Now, Star Union Dai-ichi is the only insurer offering reverse mortgage product.
NHB is also in advanced stages of finalising similar deal with LIC &Corporation Bank. 

The 100% owned subsidiary of the RBI (Reserve Bank of India), NHB has managed to generate net profit of Rs. 387 crore in the financial year ending in June, 2012 a growth of about 39%. Total loan disbursements stood at Rs. 14,454 crore, compared with Rs. 12,035 crore in the previous year, registering 20% growth.


At the same time, the NHB reported NPAs (non - performing assets) of a modest Rs. 3 crore for the first time in recent years.

Rate Reductions..!

Mr. R.V. Verma also said, ,“Further rate reductions will depend on next policy review of RBI.
Moreover, we expect a growth of 20% this financial year“.

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