Mumbai: On Thursday, December 20th 2007, Central Bank of India, one of the largest public sector banks in India celebrated its 97th Founder's Day. The occasion was chosen by the bank to launch two new products and a few other services.
Cent Swabhiman, a reverse mortgage scheme especially designed for senior citizens of the country and Cent Udaan, a loan for pursuing training as a pilot for eligible aspirants was announced at this special occasion. In addition to the above schemes Central Bank of India also entered a tie-up with Reliance Mutual Fund for distributing its products. The bank also extended the core banking solution platform to its Shirdi branch and is contemplating to install an ATM there. An online application facility for education loans was also launched at the occasion.
Cent Swabhiman will enable eligible senior citizens to avail a loan against their property. This will help them earn an steady amount as monthly income or they can use it to get a lump sum amount from the bank. Reverse mortgage is a relatively new concept in India though the concept is very popular in western countries. Reverse mortgage is like regular mortgage but here the bank pays the property owner, usually a senior citizen over 60 years of age till he lives. The bank doesn't ask for any repayment instead it sells the property on the owners death and recovers its amount with interest. Any surplus funds available are distributed to the legal heirs of the owner. Reverse Mortgage by State Bank of India (SBI) was one of the pioneer effort by public sector banks in India towards offering this service.
Cent Udaan, another new product is geared towards providing a loan up to a maximum of Rs. 25 lakhs to aspiring pilots. This loan will have to be repaid within five years of completion of the pilot training program.
Established in 1911 by Sir Sorabji Pochkhanawal, Central Bank of India is one of the oldest and largest commercial banks in India. Nationalized on 19th July, 1969 by the Government of India, the bank currently has a nationwide presence with more than three thousand branches and around three hundred extension counters across 27 States.