Mumbai, Feb 28 (UNI) LIC Housing Finance Limited (LICHFL), a leading player in the Indian housing finance sector, today rolled out reverse mortgage loans for senior citizens.
The loan will be given on single or on joint basis with the spouse, if the spouse is over 60 years, LIC Housing Finance said in a statement here.
The reverse mortgage loan would be offered at a fixed interest rate subject to reset every five years. Under the reverse mortgage scheme, senior citizens can avail the loan either on a monthly payment or a lump sum payment or a combination of both.
The property evaluated for the loan should have at least 20 years of residual life.
The maximum loan balance shall be restricted to 90 per cent of the value of the property and the loan balance will include interest till maturity. The amount of the loan will take into consideration the property value, age of the borrower and rate of interest. The loan will become due and payable only when the last surviving borrower dies or opts to sell the home or permanently moves out of the home to an institution or to relatives.
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