SBI, the State Bank of India, proffers several reverse mortgage services to the senior citizens of India. It does not offer reverse mortgage loan for trading or speculative purposes.
The main aim of SBI behind this scheme is to provide an additional income source to the senior citizens of India, who buy self-acquired house or housing property in India.
Loan Features:
1. The loan can be avail through monthly or quarterly payments.
2. The loan amount will be 90% of the property value.
3. If the last surviving borrower eventually dies or chooses to sell the home then the loan will be due and payable.
4. Borrowers should submit their annual life certificates by November of every year.
Eligibility:
(1) The candidate has to be a senior citizen, above 60 years, of India.
(2) Married couples are also eligible as joint borrowers but one of them has to be a senior citizen of the country.
(3) The life, obviously residual life, of the home property should go beyond 20 years.
(4) The mortgage property must be free from encumbrance.
Security of Loan:
The SBI secures the reverse mortgage loan by addressing the residential property of the borrower as an equitable mortgage.