For the elderly a Reverse Mortgage scheme is like a golden walking stick. It is especially useful for those, who have their own or self-acquired houses and property in India. One of the best features of reverse mortgage is that it can be used for various purposes. It can also be used as an additional income, it can be used for personal expense and it can be also used for home repairs. What we want to tell is that it can be used for a variety of purpose.

SBI, is one the largest banks in India which is offering an option of Reverse Mortgage and here are a few things which you should know about the offering –

• It can be taken jointly as well as individually.
• Reverse Mortgage is only given if the applicant’s age is above 60 years. You also have to remember that in case there are joint applicants, then the age of the younger spouse will be taken into consideration while calculating the mortgage amount.
• There is also a clause which states that the person cannot re-marry during the loan period. If they do marry, then the mortgage stands void and the loan will be foreclosed.
• As far as the residence is concerned, the applicant must be living in a self-acquired home against which the loan is raised. As a proof of residence, the applicant must submit either of the following – Mobile/Telephone/Credit Card bills or even a certificate from the housing society will do. You can also use an affidavit which is made before the Executive Magistrate which may be accepted as a proof of residence.
• When it comes to Title of the Property then the borrowers should have a clear and a transferable title in their names. Documents such as title verification and a search report for a period of 30 years will be required.
• If there is a joint loan, then the borrower should make a will in the favour of the spouse. The reason to do this is that it confirms that it is the last will and it supersedes all others.
• Residual Life of Property – The life of the property should be at least 20 years if there is a single applicant and 25 years if the couple is borrowing, provided that the age of the spouse is below the age of 60 years. Also, the certificate from the engineer/architect is required for this purpose.

Tenor of SBI Reverse Mortgage Loan

• Age of the younger of the borrowers if it is 58 years and between 68 years, then the tenor is of 15 years.
• If the age of the younger borrower is above the age of 68 then it is 10 years or till the death of the borrower(s), whichever comes first.

Periodicity of availing loan

• Monthly/ quarterly payments
• Lumpsum payment