Central Bank of India to offer home loans to pensioners in partnership with Tata Housing

Mumbai: State-run lender Central Bank of India has tied up with Tata Housing Development Co, the property development arm of Tata group, to provide home loan product -- CentHome Swabhiman Plus -- especially designed for pensioners, the Press Trust of India reported citing the bank's General Manager R Sangapure.

"We have signed an agreement with Tata Housing for our newly developed home loan product that will be offered to the pensioners at the upcoming Tata Housing's project at Washim on Mumbai's northern outskirts," Sangapure told the news agency earlier Wednesday.

The home loan product, which seeks to finance home buyers in between the age group of 55 years and 70 years at discounted rate, needs the approval of banking regulator Reserve Bank of India (RBI), Sangapure said.

Under the agreement, home loans falling below Rs 3 million will only attract the bank's current base rate, while loans above Rs 3 million will be available at 0.25% rate of interest above the base rate.

The home loan product will also offer reverse mortgage option to customers who are not able to service the loan after a period of time.

The product also aims to finance borrowers who want to benefit from the medical fund being created by Tata Housing, he said, adding that Tata Housing has priced the housing units in Washim in the range of Rs 2.5 to Rs 4 million.

Earlier, this week, Central Bank of India had said it will offer between 25 and 50 basis points discount on interest rate on home loans from February 20 to March 31, in a bid to shore up its loan portfolio as the financial year draws to a close.

Central Bank of India has also waived-off the processing fee on loans under its special home loan product.

Shares of Central Bank of India were trading at Rs 102.35 on the Bombay Stock Exchange (BSE) at 1:22 pm, down 2.76% from the previous close.

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