Looking to spark more interest in the reverse mortgage market, India’s National Housing Bank is talking with the Life Insurance Corporation (LIC) to enter the business.
RV Verma told the Financial Chronicle that if LIC would join, other life insurers who remained on the sideline could choose to offer the product.
“We are talking to LIC to impress upon them the need to consider tying up with a bank to offer a reverse mortgage product. LIC’s entry would send the right signals to the market. That should help reinvigorate the market,” Verma said.
Despite being over a year old now, the new revised mortgage scheme that was worked out as a tie-up between an insurer and banks, Star Union Dai-ichi Life Insurance (SUD) has been the only life insurer that has ventured into the scheme.
However, several banks, including Central Bank of India, State Bank of India and Punjab National Bank, have joined hands with SUD to offer the product. The revamped reverse mortgage, which was devised by NHB, was launched in October 2009.
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