Introduction
In this article I will be writing about the Reverse Mortgage and how it can help you in the retirement. This product is has low awareness among the public. Nowadays few banks started making awareness to the public to sell the reverse mortgage products. This article explains the basic concepts on reverse mortgage. If you like the article please subscribe us.
What is Reverse Mortgage?
This product is most useful for the senior citizens when they are looking for the money after the retirement. The process is to get the monthly income by giving the house to bank as the security. Bank will take the property after you and your spouse’s dismissal. The following are the key facts about the Reverse Mortgage.
- In India only three banks sell this product: SBI, Punjab National Bank(PNB) and Central Bank of India.
- SBI gives 90% of the property value to the customer.
- PNB provides 80% of the property value to the customer.
- The main disadvantage of this plan is only for 20 years. After the period banks will take the property.
- Central Bank of India came up with the life time support. For that they provide only 60% value of the property.
Summary
I hope this article will be useful for the senior citizen who are not aware of the products. If you have any doubts, please post it in the comments section.
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May 17, 2010 at 1:15 am
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June 17, 2010 at 1:09 am
Lets say there are two properties x and y worth value 50 Lakhs and consumer owns property x. Consumer has 5 lakhs. SBI will provide consumer 45 lakhs for property x. Consumer can purchase y property for 50 Lakhs and rent out y property for 10K/month. That will return 40% per annum for consumer on investment of 5 lakhs
June 25, 2010 at 11:55 pm
PEOPLE DONT FOR REVERSE MORTGAGE. THE BANKS WILL MAKE YOUR LIFE MISERABLE THOUGH INCREASING INTEREST RATES. ITS A GOOD PACK OLD MAN TRAP. ALL THE OLD AGE WILL GO IN TROUBLE WITH SUCH SCHEME. ITS A DACOITY BY PUBLIC BANK OPENLY.
August 18, 2010 at 4:08 am
I AND MY WIFE BOTJ ARE SENIOR CITIZENS AND HAVING A BANGALA. WHICH COST OF RS 6500000. WE REQUIRED 2500000.
MY RESIDENTAL QUARTER NEAR TO STATE BANK OF INDIA STATION
ROAD PARBHANI.431401 IN M.S BOTH ARE ELIGIBLE FOR THE REVERSE MORTGAGE LOAN I HAVE CONTACTED TO THE BR.MANAGER
OF S.B. OF.INDIA BR PARBHANI BUT NO RESPNSE FROM BANK
HENCE YOU ARE REQUESTED FOR FURTHER PROSESS MY M.NO.9422179739.AND PHONE NO.02452225756. AND MY ADRESS AS
October 2, 2011 at 3:32 pm
Is it possible to get lump sum amount in this scheme? To what extent will be lump sum?