Owning a house is the biggest financial goal for most people, and the same holds for senior citizens. Whether it is for purchasing a home, constructing one, or unlocking the value of their property, the State Bank of India has solutions tailored to suit the need of the older borrower.
SBI Home Loan Schemes for Senior Citizens
SBI offers various options for housing needs for senior citizens. Among the popular schemes is the SBI Reverse Mortgage Loan, wherein persons above 60 years can accept their house as a regular source of income without selling it.
This is the scenario in which Shell provides the borrower with a fixed amount monthly, quarterly, or lump sum against the mortgage of the house. The borrower will continue to stay in the house for life, with repayment to be made only on death of the borrower.
Other than the reverse mortgage, senior citizens with pension income or co-borrowers with regular income are also eligible to apply for SBI regular home loans. The said loans may be used for purchasing a new house, building a home, or renovating an existing one.
Eligibility Criteria and Loan Amount
Any person wishing to apply for an SBI reverse mortgage loan must be at least 60 years of age (or 58 years if applying jointly with the spouse). Such property must be self-occupied and free from any major legal disputes. Loan amounts usually go up to ₹2 crore in metro cities and around ₹1.5 crore in other locations.
These loans can have a maximum age of 75 years at maturity if pension income is considered. Loan amounts are, however, based on the determination of the applicant’s repayment capacity and value of the property.
Interest Rates with Benefits
The interest rates are between 8.05%-9.05% p.a., depending up on the profile of the borrower and the type of loan for the senior citizen loans at SBI. Reverse mortgage loan reverses the monthly EMI burden, allowing the retired persons to have cash flows for themselves.
Processing fees are nominal, prepayment charges are either too low or waived off, thereby making SBI schemes more tempting for the aged.
Interim Conclusion
Special financial loans with a certain flexibility shall be available to senior citizens during retirement. With reverse mortgage loans, however, the family must choose more financially for the home-owners. Regular home loans may be considered by a senior person who wishes to buy or build a house, particularly if they have a source of income like a pension or younger co-borrower.
