PNB lauches Reverse Mortgage Scheme

Mumbai, Apr 15: Creating a milestone in the banking industry, for the first time in the country, Punjab National Bank today announced the launch of the Reverse Mortgage Scheme that will provide senior citizens up to Rs one crore loan by mortgaging their house.

Reverse mortgage works in exactly the opposite way as housing loans.

Under this system, a loan is given to senior citizens against their property. The owner makes no payments and all interest is added to the lien on the property. The home owners need not repay the loan during the rest of their lifetime, an official statement here today said.

As per the Scheme a senior citizen of 60 years or more, who owns a house with clear title, free from any encumbrances, is eligible for loan.

The Bank will extend the loan in the shape of monthly installments during loan tenure of 15-20 years or till the death of the last surviving spouse, whichever is earlier.

The monthly loan amount shall be paid on 'Reverse Annuity' basis.

Since 'Reverse Mortgage' concept is looked upon as a social security measure and not just a loan product, the Bank has pegged the interest at very attractive fixed rate of 10 per cent.

Also, in the present scenario investors are looking for higher returns and proper management of their disposable fund.

Wealth Management Services is the process of meeting an individual's life goals through proper management of his finances.

It is with this perspective bank has also launched wealth management services, the statement said.

Further to provide multiple preferences, augment the compass of 'online' trading and comfort to the customers, PNB Chairman and Managing Director S C Gupta also launched the 'online' securities Trading facility in association with Moti Lal Oswal Securities Ltd.

In this connection, PNB Chief General Manager U S Bhargava signed the Memorandum of Understanding (MOU) with Director - Retail Business Hitungshu Debnath.

PNB has also come out with a unique product 'PNB Floating Rate Fixed Deposit Scheme' which is the first of its type to be offered by any bank in India. Under this scheme, the rate of interest payable on the fixed deposit will automatically change with the changes in fixed Deposit Card Rates made available by the Bank from time to time.

The changes in rate of interest will be made applicable, automatically without presentation of the fixed deposit receipt by the depositors.

Last but not the least, to offer these services at the door step of the customer, PNB has opened an additional 113 outlets, the statement added.

UNI