SBI Reverse Mortgage Loan:SBI brought a good earning opportunity for these people
SBI Reverse Mortgage Loan: Senior citizens having self-acquired or self-occupied house can get an additional source of income through SBI Reverse Mortgage Loan Facility. According to the SBI website, the reverse mortgage facility can be useful for senior citizens who do not have an adequate source of income to support themselves.
SBI brought a good earning opportunity for these people, in this your house will bear all your expenses
Under SBI reverse mortgage loan, the bank lends money to the borrower/s (in case of spouse) against the mortgage of their residential property. The bank says that the borrower is not expected to repay the loan in his lifetime. However, the borrower has the option to repay the loan.
Senior citizens should know these things
SBI reverse mortgage loan can be a better option for senior citizens who do not have enough income to support themselves. They also have the option of not repaying the loan. However, before applying for this loan, there are a few things that senior citizens should be aware of:
Banks offering reverse mortgage loans get the property appraised periodically, generally after every 5 years.
Rising inflation is not taken into account as the monthly amount you get is fixed.
Banks generally consider a margin of 15-20% on the valuation of the property while approving a reverse mortgage loan. For example, if the valuation of the property is Rs 50 lakh, then only Rs 40 lakh will be sanctioned as a reverse mortgage loan.
The loan amount also includes an interest component. This means that the amount you actually get will be equal to the loan sanctioned minus the interest on the loan.
After the death of the borrower, the bank sells the property. It returns the remaining amount to the legal heirs of the borrower if the property is sold for a higher price. Alternatively, the legal heir can retain the house by repaying the loan.
Know – are you eligible or not?
In case of a single borrower, a resident Indian above the age of 60 years can apply for a reverse mortgage loan. In case of joint borrowers, the age of the spouse should be above 58 years.
Loan Tenure and Amount
The minimum amount that can be availed through the reverse mortgage loan facility is Rs 3 lakh and the maximum is Rs 1 crore. The loan tenure is 10-15 years depending on the age of the borrowers. Explain that SBI charges a processing fee of 0.50% of the loan amount subject to a minimum of Rs 2000 and a maximum of Rs 20,000 and applicable taxes.