Andhra Bank to Launch Reverse Mortgage
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.