ASSIGNMENT 3

Group 10:
PGP/20/072 Bhumika Agarwal
PGP/20/072 Abhishek Patel
PGP/20/072 Shivani Singh
PGP/20/072 Swati Singh
PGP/20/072 Manav Surana
PGP/20/072 Tushar Sangwan
Senior Citizen Mortgage
Loan
Senior Citizen Mortgage Loan
Dedicated mortgage loan for citizens above 60 years of age who own
a residential property whose residual life is at least 20 years
Benefits:
Multiple payment options - periodical, lump sum or
committed credit line
Loan amount can be used for various purposes
medical emergency, daily needs etc.

Payments:
Monthly payments capped at 50,000
Lump sum amount capped at 50% of the total
eligible amount of loan with a cap of Rs 15 lakh

Interest Rate: Base rate + 2.75-3%

Types: Two variants of RML availableregular RML and reverse mortgage loan-
enabled annuity (RMLeA)

Tenure: 20 years
PRODUCT LIFECYCLE STAGE

GROWTH
STAGE

Audience Mainstream

Market Growing

Sales High

Competition Moderate

Business Focus Market Share

Design Focus Scaling

GROWTH OPPORTUNITIES CHANGING DEMOGRAPHICS

According to WHO, 2 BN people will be at least 60 years old

by 2050

Population size & its annual growth rate in India for 1951-2100
-Source: Researchgate
GROWTH OPPORTUNITIES INCREASING HEALTH
EXPENDITURE

Increased life expectancy due to advancements in

health care and treatment
Increasing expenditure by both public and private
bodies on health products and services

4.9
Health Expenditure (% of GDP)
4.7
Health Expenditure (%)

4.5

4.3

4.1

3.9

3.7

3.5
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Year
Source: World
Bank
IMPROVEMENTS IN THE CURRENT SYSTEM

Challenges:
Emotional attachment to a property

Lack of understanding of the product

Lack of awareness

Overcoming the challenges:

Extend the use of loan amount for business purposes

Door-to-door sessions to explain the details of the product to the senior citizens

Increase the focus on advertising through media channels which are popular
amongst the senior citizens like News channels, Newspapers etc.

Focus on customized regional marketing