The reverse mortgage loan scheme is an important scheme. State Bank of India provides this scheme. By taking advantage of this scheme, you can live comfortably in old age
Mumbai: Everyone wants their post-retirement life to be comfortable. After retirement, many elderly couples face difficulties in old age. If there is no one to take care of them and the situation gets worse. This is how a reverse mortgage loan scheme is very important. State Bank of India provides this scheme. By taking advantage of this scheme, you can live comfortably in old age.
Why does a reverse mortgage loan scheme work in the opposite way to a home loan? Home loan has to be paid in installments every month. Also, in the reverse mortgage loan scheme, a certain amount can be earned every month by mortgaging the house. At the same time the loan applicant is allowed to stay in the same house. This means that if you are currently a homeowner, you can earn income from this scheme every month in old age.
Features of reverse mortgage loan
According to the information available on SBI’s website, the interest rate of this scheme is low. Processing fees are also lower. There is no penalty if you are going to make a prepayment. The processing fee can be as much as 0.5 per cent of the loan amount. It can cost from a minimum of Rs 2,000 to Rs 20,000.
Terms and Conditions
If the loan is sanctioned under the scheme. Stamp duty, property insurance premium and CERSI registration fee on loan agreement and mortgage will have to be paid.
The loan applicant should own the house. If your property is for commercial use, you cannot avail this scheme.
