Senior citizen? SBI will pay you in retirement, if you do this

There are many special services provided the banks to senior citizens. They are even offered a better interest rate when it comes to savings. But did you know, there is a service where your bank will pay you on your retirement. Yes, you have read it right, especially if you a State Bank of India (SBI) customer, then the bank will pay you in your old age days. The largest lender has a scheme called as reverse mortgage loan, where you can keep your home in India with the bank and the lender will pay you for life time. In fact, you do not even have to pay any loan, just enjoy income by keeping your self-occupied home with SBI. 

“SBI Reverse Mortgage Loan provides an additional source of income for senior citizens of India, who have a self-acquired or self-occupied home in India. This product is beneficial for senior citizens who do not have adequate income to support themselves," the lender says on its official website.

SBI makes payments to the borrower /borrowers (in case of living spouse), against mortgage of his / their residential house property. The borrower is not expected to service the loan during his lifetime.

What happens is that a homeowner who is above 60 years of age, and has a considerable home equity. Then that owner can borrow money from bank against the value of that property. Here, a senior citizen will receive fixed income on monthly basis or in line of credit by the bank. 

Under SBI’s reverse mortgage loan features like low interest rates, low processing fees, no hidden charges and no pre-payment penalty is also available. 

For being eligible, a senior citizen must be a resident of India and is of age 60 years and above. In case of joint borrowers, spouse’s age should be more than 58 years.

Tenure of this loan is somewhat 10-15 years, but depends upon the age of a borrower. 

A senior citizen can avail financial aid of minimum Rs 3 lakh and maximum Rs 1 crore. 

If the borrower is women and others, then SBI charges 10.55% interest rate per annum. While if it is an SBI pensioner then, the bank levies 9.55% rate. Processing fee is 0.50% of the loan amount which can be minimum Rs 500 or maximum Rs 10,000.

Among documents needed would be PAN/ Passport/ Driver’s License/ Voter ID card and accurate information of the property.