New Delhi: After the successful launch of a reverse mortgage scheme by SBI, Bank of Baroda (BOB) is also planning to introduce one such scheme for senior citizens from 26 November. The announcement in this regard was made by Mr. G Nagamal Reddy, general manager (eastern zone) at a bankers's conference in Mumbai.
Though the details of the scheme have not been spelt out as yet, it is likely to compete with the SBI's reverse mortgage scheme. The concept of reverse mortgage is pretty new in India. It is a scheme in which the property earns income for its owner. Especially suited to senior citizens owning a property, who need lump sum money or a regular income, the reverse mortgage offers much needed help.
Apart from SBI, which launched the scheme in October, Dewan Housing Finance Limited (DHFL) was the only player in the market to offer a reverse mortgage. Now, with the concept catching up, more banks are likely to bring in their versions.