BANKING AFFAIRS

Detailed explanation-1: -A reverse mortgage, launched in 2007, is a financial product devised to help people above 60 to mortgage their property with a lender and convert part of the home equity into tax-free income without having to sell the house. The payment may come from a bank as a loan or from an insurer as annuity income.

Detailed explanation-2: -Reverse Mortgage Loan Eligibility You should be 60 years or older. If you apply jointly with your spouse, your spouse’s age must be no less than 55 years. You may mortgage a self-acquired and self-occupied residential property in India. The property cannot be a gift or an inherited property.

Detailed explanation-3: -REVERSE MORTGAGE ELIGIBILITY The product is available only to senior citizens of India. Individual, either singly or jointly with spouse as co-applicant. Minimum age of borrower to be 60 years and that of the spouse to be 55 years.

Detailed explanation-4: -Reverse Mortgage Loan (RML) enables a Senior Citizen i.e. above the age of 60 years to avail of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house.

Detailed explanation-5: -This product is beneficial for senior citizens who do not have adequate income to support themselves. The Bank 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.