Reverse Mortgage is relatively a new concept in Indian market. An initiative by RBI, Govt of India, NHB and others to support the senior citizens. This is a class room presentation made by Prof Chowdari Prasad to MBA (Finance) students. Suggestions are most welcome

1. REVERSE MORTGAGE Have the Cake and Eat it too PROF CHOWDARI PRASAD

7. REVERSE MORTGAGE FDP BU BLR

8. HOUSING FINANCE MARKET REVERSE MORTGAGE FDP BU BLR Households, Corporations, Trusts, Provident Funds Government of India Reserve Bank of India External Sources N H B Scheduled Banks LIC : Life Insurance Corporation of India GIC : General Insurance Corporation of India CHFS : Co-operative Housing Finance Societies Households & Corporations Housing Finance Companies LIC/ GIC State Governments Housing & Urban Devpt. Corporation State Apex CHFS Primary CHFS Public, Pvt. Agencies/ SHGs/MFIs

11. MORTGAGE – Transfer of Interest in an immovable asset viz., land, building, etc REVERSE MORTGAGE FDP BU BLR

13. REVERSE MORTGAGE FDP BU BLR

14. REVERSE MORTGAGE FDP BU BLR

15. Table 1.2 -Retail Portfolio of Banks (Amt in Rs Crs) – T&P OF BKG IN INDIA 2005 REVERSE MORTGAGE FDP BU BLR S No Item March 2004 March 2005 %Vari- ation 01 Housing Loans 89,449 1,34,653 50.5 02 Consumer Loans 6,256 3,810 -39.1 03 Credit Card Dues 6,167 8,405 36.3 04 Other Per. Loans 87,170 1,20,120 37.8 05 Total Retail Lns 1,89,041 2,66,988 41.2 06 Total Loans 8,64,271 11,05,725 27.9 07 % of (5) out of (6) 21.9 24.1

16. Table 1.3 - Personal Loans (ET dt August 17, 2007) Rs Crs REVERSE MORTGAGE FDP BU BLR Particulars Oct 2006 Dec 2006 May 2007 Retail Loans 3,98,055 4,27,909 4,55,439 Housing 2,09,468 2,17,829 2,30,751 Agst FDs 33,744 35,764 39,092 Cr Cards 11,870 11,913 14,221 Education 12,692 13,399 15,438 Con Dur’ble 9,291 8,558 8,831 Others 1,20,990 1,40,446 1,47,106

19. REVERSE MORTGAGE FDP BU BLR Table 1.4 : Population Ageing in Selected Countries Population (In Millions) % of Population Over 65 Pop’n over 65 (No’s in Mn) YEAR 2000 2030 2000 2030 2000 2030 China 1262 1483 7.0 16.0 88 237 India 1014 1437 4.6 9.0 47 129 USA 276 351 12.6 20.0 35 70 Indonesia 225 313 4.5 10.9 10 34 Brazil 173 203 5.3 13.2 9 27 Russia 146 133 12.6 20.5 18 27 Japan 127 117 17.0 28.3 22 33 Thailand 61 71 6.4 16.4 4 12 France 59 62 16.0 24.0 9 15 UK 60 61 15.7 23.5 9 14 S.Korea 47 54 7.0 19.5 3 11 Malaysia 22 35 4.1 9.4 1 3 Australia 19 23 12.4 21.1 2 5 S’pore 4 9 6.8 14.8 0 1

20. Proportion of Elderly in Population REVERSE MORTGAGE FDP BU BLR Source: An Ageing World, 2001, US Census Bureau

22. Life Expectancy at age 60: Selected Asian Countries ( Source: Adopted from Chakraborty (2004) ) REVERSE MORTGAGE FDP BU BLR