As the perception of reverse mortgage gains popularity in India, HDFC proposes to enter the market with a customized mortgage product for the elderly. The process of identifying potential customers has already been initiated in Athashri in Pune , a housing society exclusively for senior citizens.
HDFC Realty Fund made a major investment of almost Rs. 75 crore in Pune’s senior citizens project under the Paranjape Schemes banner. With its interests in the project, HDFC would extend a moderate mortgage policy to the residents of Athashri.
Paranjape plans to go national with its senior citizens projects in the
next 2-3 years, and HDFC has expressed its willingness to partner them
all the way.
Reverse mortgage policies in the US are popular amongst the elderly
who use their own home to generate an income.
The mortgage fetches them
a regular instalment till they pass away, after which the bank
sells the property to recover the loan it had extended.
HDFC plans to extend a customised reverse mortgage scheme to
300 homes in Athashri, depending on the borrower’s needs.
