SBI launches SBI Reverse Mortgage Loan |
Mumbai, India, November 01, 2007 - Leading bank, SBI has launced a reverse mortgage loan product designed for the benefit of senior citizens, above the age of 60 years.
They can avail loans, released in monthly or quarterly instalments or as a lumpsum payment at the beginning, against the security of their self-acquired, self-occupied houses. The loan will be given jointly if the spouse is alive, provided he/she is above 58 years of age.
The loan need not be repaid by the borrowers during their lifetime. They will also continue to stay in their houses during their lifetime. Thereafter, an option is available to the legal heirs to repay the Bank loan and redeem the house property. If this option is not exercised, Bank will sell the property and liquidates the loan. Surplus, if any, will be passed on to the legal heirs.
The loan is available at all branches of SBI. The loan carries a fixed interest rate of 10.75% p.a. subject to reset at the end of every 5 years along with revaluation of security and re-adjustment of loan instalments, if necessary. For a loan of Rs. 1 lac the monthly payment to the borrower on a 10 year loan is Rs.468/- and on a 15 year loan it would be Rs.225/-. Similarly for a loan of Rs.1 lac, the quarterly payment to the borrower on a 10 year loan is Rs.1,423/- and on a 15 year loan it would be Rs. 687/-.
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LIC Housing Finance launches reverse mortgage for senior citizens |
Mumbai, India, February 28, 2008 - LIC Housing Finance Ltd (LICHFL), a leading player in the Indian housing finance sector, rolls out reverse mortgage loans for senior citizens above 60 years of age. The loan will be given on single or on joint basis with the spouse, if the spouse is over 60 years.
The reverse mortgage loan will be offered at a fixed interest rate subject to reset every 5 years. Under the reverse mortgage scheme, senior citizens can avail the loan either on a monthly payment or a lump sum payment or a combination of both. The property evaluated for the loan should have at least 20 years of residual life.
The maximum loan balance shall be restricted to 90% of the value of the property and the loan balance will include interest till maturity. The amount of the loan will take into consideration the property value, age of the borrower, rate of interest etc.
The loan will become due and payable only when the last surviving borrower dies or opts to sell the home or permanently moves out of the home to an institution or to relatives.
Speaking on the occasion of the launch of reverse mortgage, LIC Housing Finance Director & Chief Executive, Mr. S.K.Mitter said “Reverse Mortgages are loans that allow Senior Homeowners convert home equity into cash without leaving their homes and without making monthly mortgage payments.”
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