CHENNAI: LIC Housing Finance Ltd is waiting for product redesign of the reverse mortgage scheme to tap the potential of the segment, its Director and Chief Executive R.R. Nair said here on Friday.

Speaking at the inauguration of a three-day property fair ‘Ungal Illam 2009’ at Rani Meyyammai Hall, Egmore, he said “We are in discussion with insurance companies to develop a suitable product. After that we may be able to launch reverse mortgage scheme.”

At the fair, an interest rate of 8.75 per cent floating for home loans up to Rs.75 lakh and a fixed rate of 8.9 per cent for three years are being offered. A total of 32 builders are showcasing a range of residential options at the fair.

“As the sector is doing well this year, we expect a disbursement of more than 600 home loans at the fair,” he added.

Last year LIC Housing Finance Ltd disbursed 600 home loans at the fair, said Mr. Nair.

Pointing to a huge demand supply gap in the sector, Mr. Nair said “There will be a growth of 40 per cent in disbursement this year.”

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