Andhra Bank to launch reverse mortgageAndhra Bank to launch reverse mortgage loan scheme by April 2008
Apnaloan.com Research Bureau
21 Mar 2008
Followed by peers such as LIC Housing Finance and Canara bank, Andhra Bank is set to launch a reverse mortgage loan scheme by April 1, 2008. The bank was awaiting clarity on tax treatment for the reverse mortgage loans, which was clarified in the Union Budget 2008-09.
Reverse mortgage loans are loans that are offered to senior citizens against their self-owned, self-occupied residential properties.
According to bank sources, the interest rates on these loans will be much in line with that of the housing loans, though it may increase at a later date.