Mumbai, Oct 10 (UNI) State Bank of India (SBI) will launch a new product - SBI reverse mortgage loan - on October 12, which will enable senior citizens to avail loans against their self-acquired, self-occupied houses.
This loan will be released in monthly or quarterly instalments or as lumpsum payment at the beginning and will be given jointly, if the spouse is alive and provided he/she is above 58 years of age, said a statement from the bank.
The loans need not be repaid by the borrowers during their life time while the legal heirs will have an option to repay the loan and redeem the house property thereafter. If the heirs fail to repay the loan, the bank will sell the property and will liquidate the loan.
The loan carries a fixed interest of 10.75 per cent per annum subject to reset at the end of every 5 years, added the release.