UBI set to launch reverse mortgage scheme by April

MUMBAI:
Following the budget proclamation that income received on contrary mortgage would
not be taxed, public-sector loaner Union Depository Financial Institution of Republic Of India bes after to establish its
reverse mortgage merchandise by adjacent month. "The merchandise is ready with the
bank. The budget have cleared all the taxation substances related to the merchandise (reverse
mortgage). We be after to establish the merchandise by adjacent month," UBI President and
Managing Director Meter Volt Nair told PTI. Many loaners such as as State
Bank of India, Kanara Bank, Punjab National Bank, Uco Bank, Depository Financial Institution of Baroda,
Allahabad Bank, North American Indian Bank, Axis Depository Financial Institution and Central Depository Financial Institution of Republic Of Republic Of India are already
offering the merchandise to senior citizens. Announcing the budget, Finance
Minister Phosphorus Chidambaram had said that the income taxation enactment would be amended to
provide that contrary mortgage would not amount to 'transfer' and the income
received by senior citizens would not be taxed as 'income'. Change By Reversal Mortgage is a scheme
meant to supply a monthly income for senior citizens, who have self-acquired and
self-occupied house property, by mortgaging the place to the bank. The client makes not have got to
repay the amount during his/her lifespan and can bask the stay in the house
with the partner through his/her lifetime. After the decease of the
borrower, the legal inheritors can either give up the place to the depository financial institution or can
repay the loan to deliver the property. UBI, which is currently
implementing an aggressive enlargement programme, had recently rolled out a
bouquet of merchandises to its clients such as as samariums Banking, Online Trading Service
besides bringing nearly 2,100 subdivisions under the Core Banking Solution (CBS).