Housing finance regulator National Housing Bank will announce the guidelines for 'reverse mortgage' next month.

This would allow senior citizens who own houses to have a regular stream of income for 15 years.

"Draft operational guidelines on reverse mortgage have already been circulated to banks and the housing finance companies and I expect the final guidelines to be out by April end," NHB chairman and MD S Sridhar told PTI.

Reverse mortgage works exactly the opposite way of housing loans, he said, adding, "Once we receive feedback and suggestions from banks, the guidelines would be formalised".

Elaborating the reverse mortgage concept, Sridhar said under the scheme, a senior citizen can seek loan against the residential property for meeting financial needs in one's sunset years without surrendering the ownership.

Banks and HFCs would give loan on lump sum basis or in monthly installment for a maximum tenure of 15 years, he said, adding that thereafter the beneficiary will have to repay the loan or else the value would be realised by selling the house.

The final guideline is also expected to allow the creation of mortgage guarantee companies to provide greater comfort to banks, housing financing companies that lend against mortgage.