NEWS & ADVICE : HOME LOANS
Senior citizens can now get a reverse mortgage loan from SBI
By Joseph Samson
Oct 11, 2007
Print    Email    RSS   

A reverse mortgage loan has been announced as a new loan product by State Bank of India (SBI). Exclusively offered to senior citizens, above the age of 60, this reverse mortgage loan is provided against self-owned and occupied houses. The loan can be availed as monthly or quarterly payments or as a lump sum payment.

Reverse mortgage, a new concept in India has been a very popular loan product in the west. The concept is simple, a senior citizen who holds a house or property, but lacks a regular source of income can mortgage his property with a bank or housing finance company (HFC) and the bank or HFC pays the person a regular payment. The good thing is that the person who ‘reverse mortgages’ his property can stay in the house for his life and continue to receive the much needed regular payments. So, effectively the property now pays for the owner.

The reverse mortgage loan can also be given jointly if the spouse is alive and above 58 years of age. No repayment has to be made to the bank during the borrower's lifetime. Senior citizens taking a reverse mortgage can continue to live in their homes for their entire life. After the death of the borrower, either the legal heirs can repay the reverse mortgage and take back the claim on property or the bank sells the property to recover its dues. If there is any surplus amount available after selling the property, it will be disbursed to the legal heirs.

SBI has decided to launch this scheme from October 12, and it will be available from all branches of SBI. The reverse mortgage loan product from SBI will have a fixed interest rate of 10.5 percent per annum and it can be revised at the end of every 5 years along with revaluation of security and re-adjustment of loan installments, if necessary.

For a loan of one lakh, 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 one lakh, 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.

Other players like LIC Housing finance are also gearing up to launch this product. SK Mitter, director and chief executive of LIC Housing Finance told the media persons, that there is a market for reverse mortgage and they are ready with the product as per the guidelines issued by National Housing Bank and will launch it in some time. Currently Dewan Housing Finance Limited (DHFL) is the only company, which offers reverse mortgage loans.


(Comments Posted : 142) Post Your Comments
1. Do you need Financial Assistance?
Do you seek funds to pay off credits and debts?
We give out loan with an Interest rate of 1.00%
Please, contact us for more information: pergocf@fastservice.com
Are you a business man or woman? Are you in any financial mess or do you need funds to start up your own business? Do you need a loan to start a nice Small Scale and medium business? Do you have a low credit score and you are finding it hard to obtain capital loan from local banks and other financial institutes?.

Our loans are well insured for maximum security is our priority, Our leading goal is to help you get the services you deserve, Our program is the quickest way to get what you need in a snap. Reduce your payments to ease the strain on your monthly expenses. Gain flexibility with which you can use for any purpose – from vacations, to education, to unique purchases

We offer a wide range of financial services which includes: Business Planning, Commercial and Development Finance, Properties and Mortgages, Debt Consolidation Loans, Business Loans, Private loans, Home Refinancing Loans with low interest rate at 1.00% per annul for individuals, companies and corporate bodies. Get the best for your family and own your dream home as well with our General Loan scheme.

WE OFFER ALL KIND OF LOANS - APPLY FOR AFFORDABLE LOANS.

Please, contact us for more information: pergocf@fastservice.com
Kindly write us back with the loan information;
- Complete Name:
- Loan amount needed...$, €, £:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- Name of the Site:

If you are interested to get a loan then kindly write us with the loan requirement.
Please, contact us for more information: pergocf@fastservice.com

Yours Sincerely,
Mrs. Ceren Kelly
pergocf@fastservice.com

We look forward to hear from you ASAP

Interested applicants should Contact us via email: pergocf@fastservice.com
Mrs. Ceren (Posted: Oct 9, 2016)
2. Do you need Financial Assistance?
Do you seek funds to pay off credits and debts?
We give out loan with an Interest rate of 1.00%
Please, contact us for more information: pergocf@fastservice.com
Are you a business man or woman? Are you in any financial mess or do you need funds to start up your own business? Do you need a loan to start a nice Small Scale and medium business? Do you have a low credit score and you are finding it hard to obtain capital loan from local banks and other financial institutes?.

Our loans are well insured for maximum security is our priority, Our leading goal is to help you get the services you deserve, Our program is the quickest way to get what you need in a snap. Reduce your payments to ease the strain on your monthly expenses. Gain flexibility with which you can use for any purpose – from vacations, to education, to unique purchases

We offer a wide range of financial services which includes: Business Planning, Commercial and Development Finance, Properties and Mortgages, Debt Consolidation Loans, Business Loans, Private loans, Home Refinancing Loans with low interest rate at 1.00% per annul for individuals, companies and corporate bodies. Get the best for your family and own your dream home as well with our General Loan scheme.

WE OFFER ALL KIND OF LOANS - APPLY FOR AFFORDABLE LOANS.

Please, contact us for more information: pergocf@fastservice.com
Kindly write us back with the loan information;
- Complete Name:
- Loan amount needed...$, €, £:
- Loan Duration:
- Purpose of loan:
- City / Country:
- Telephone:
- Name of the Site:

If you are interested to get a loan then kindly write us with the loan requirement.
Please, contact us for more information: pergocf@fastservice.com

Yours Sincerely,
Mrs. Ceren Kelly
pergocf@fastservice.com

We look forward to hear from you ASAP

Interested applicants should Contact us via email: pergocf@fastservice.com
Mrs. Ceren (Posted: Oct 9, 2016)
3. We have a direct genuine provider for BG/SBLC specifically for lease, at leasing price of 4+2 of face value, Issuance by HSBC

London/Hong Kong or any other AA rated Bank in Europe, Middle East or USA.

Contact : Mr rohlfsen russell
Email:rohlfsenrussell@gmail.com
Skype ID:rohlfsen.russell

Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will

work together for the benefits of all parties involved.

All inquires to Mr.Rohlfsen Russell should include the following minimum information so I can quickly address your needs:

Complete contact information:
What exactly do you need?
How long do you need it for?
Are you a principal borrower or a broker?

Contact me for more details.

Rohlfsen Russell
Rohlfsen Russell (Posted: Aug 29, 2016)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Reasons for rejection of loan application
Home Loan: A way to reduce your taxable...
Home Loans: How to reduce your floating rate
Save tax with ELSS
Factors affecting eligibility for home loans


How can I get Home load account statement to submit...
how can applay for DSA. any age, qalification,...
How to view my home loan account statement
how to get status of home loan

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive