Senior citizens, who are staying alone and lack financial support, can earn an additional source of income. The State Bank of India’s (SBI) reverse mortgage is the best option for an elderly person, who is above 60 years of age, to meet the medical expenses and get a fixed income on monthly basis.
As per the SBI, a senior citizen owning a home can take reverse mortgage to earn a regular income from the bank. Moreover, the borrower can stay in the property till the end of his life while receiving monthly fixed income.
A senior citizen must be a resident of India and is of age 60 years and above to avail the loan. Tenure of reverse mortgage loan is somewhat 10-15 years. An elderly person can avail financial aid of minimum Rs 3 lakh and maximum Rs 1 crore under the loan.
The bank charges 10.55% interest per year, if the borrower is women and others whereas the bank levies 9.55% rate in case of pensioner holding an account in SBI. Processing fee is 0.50% of the loan amount.
The borrower needs to submit PAN/ Passport/ Driver’s License/ Voter ID card and accurate information of the property.