SBI introduce 2 new products reverse mortgage & home cash loan

Rajkot, Oct 18 (UNI) The State Bank of India (SBI) has launched two new products, 'SBI reverse mortgage loan' for the senior citizens of home owners and who have insufficient income to support themselves and another is SBI Home Cash.

Addressing mediapersons here last evening, the Chief General Manager Dr H C Patnaik said, under this scheme, the Bank makes payment to the borrower/borrowers against mortgage of his/their residential property either by way of periodic installments or lump sum payments.

He further said under this scheme the minimum amount of loan availabe is Rs three lakhs and maximum upto Rs one crore and the fixed interest rate is 10.50 per cent with a reset clause every five years. No prepayment penalty, he informed.

The other new product is SBI Home Cash has launched to meet any personal exigencies, he said and added that additional funds are made available to our existing home loan customers with satisfactory record of repayment for at least one year.

Under this scheme, the minimum limit is Rs 25,000 and maximum Rs 10 lakhs to the extent of difference between 75 per cent of the market value of the house and outstanding in home loan. This facility is also available as overdraft to minimise interest cost.

The interest rates ranging from 12 to 15 per cent per annum.

The Chief General Manager said, the SBI is not only in forefront for extending financial services to its valued clients but also has undertaken various community services such as organising blood donation camps, tree plantation etc.

Branches in the circle are adopting girl child for financially supporing her for her school expenses like tuition fees, uniform, books, etc., he said and added that more than 300 girl children have been adopted and our target is to adopt 1000 girl children in all by the end of current academic year.

The SBI, Ahmedabad Circle having 463 branches, covers Gujarat and Union Territory of Daman and Diu, he said.

In reply to a question, Mr Patnaik said the merger process of State Bank of Saurashtra would be completed by March 2008.

UNI