He said that the 'Reverse Mortgaging' was a handholding facility for house owning senior citizens. Many elderly people despite holding immovable property do not have adequate income to support themselves. With the increase in longevity, the need for a regular source of income or cash flow in the old age had become a necessity, he added.
Under Reverse Mortgaging scheme the minimum and maximum loan available is Rs two lakh and 100 crore and periodic monthly payments and or lump-sum-payments. The lumpsump payment should not exceed 30 per cent of the qualifying amount and the remaining amount would be released in monthly instalments.
The rate of interest is fixed at 10.5 per cent per annum with reset clause once in every five years, he added.