State-run lender Central Bank of India in association with Star Union Dai-chi Life Insurance today launched a loan product that will provide regular income to senior citizens throughout their lives against the house as an asset.
“Central Bank of India and Star Union Dai-chi Life Insurance Co have launched reverse-mortgage enabled loan annuity product branded as CENT Swabhiman Plus,” the bank chairman and managing director S. Sridhar, said.
The product will help senior citizens avail themselves of regular payments throughout their lives by mortgaging their house with the bank.
The scheme is open for senior citizens above the age of 60 and a spouse with a minimum of 55 years.
“They can also continue to stay in the house as long as the last surviving spouse is alive,” Mr. Sridhar added.
This annuity product is an improvement to the reverse mortgage loan product, Cent Swabhiman, offered by Central Bank and by some other banks and Housing Finance Companies.
The new product assures lifetime payment against a maximum of 20 years in the existing similar products. Besides, the quantum of monthly payment is significantly higher.
