SBI brought an earning opportunity for senior citizens, Know how you can bear all the expenses of your house

SBI Reverse Mortgage Loan: State Bank of India ( SBI ) has come up with an earning opportunity for senior citizens. The home of the senior citizen can take care of all their daily expenses.

SBI is offering reverse mortgage loan facility to senior citizens on their own or self-occupied house. This can be a major source of income for senior citizens. According to the SBI website, reverse mortgage facility can prove to be useful for senior citizens who do not have any source of income to support themselves.

What is SBI Reverse Mortgage Loan?

Under SBI reverse mortgage loan, the bank gives money to the borrower/s (in case of spouse) as down payment i.e. loan against the mortgage of his/her residential property. The bank says that the senior citizen taking the loan is not expected to repay the loan in his lifetime. However, the borrower i.e. the borrower has the option to repay the loan.

This is the best chance for them

SBI reverse mortgage loan can be ideal for senior citizens who do not have the money to support themselves as they do not have to repay the loan. However, it is important to keep a few things in mind before applying for this loan. Senior citizens should know these things.

The bank offering the reverse mortgage loan keeps on valuing the property from time to time. This mostly happens after every 5 years.

Rising inflation has nothing to do with this loan because the money received in it is already fixed.

Banks usually keep a margin of 15-20% on the valuation of the property while sanctioning the reverse mortgage loan. That is, the property is valued at 15 to 20 per cent less than the market rate. For example, if the valuation of the property is Rs 50 lakh, then you will get only Rs 40 lakh in the reverse mortgage loan.

Interest is also added on the loan amount. That is, interest is also deducted from the money you get.

Bank sells the property after the death of the borrower. If the property is sold at a higher price, the balance amount is returned to the legal heirs of the borrower. However, the legal officer can also retain the house after repaying the loan amount.


A resident Indian of 60 years can apply for a reverse mortgage loan if the borrower is single. In case of joint loan, the age of the spouse should be more than 58 years.

Time and money

A minimum loan of Rs 3 lakh and a maximum of Rs 1 crore can be availed through the reverse mortgage loan facility. The loan tenure can be 10-15 years depending on the age of the borrower.

Interest and fees on loan

SBI charges a processing fee of 0.50% of the loan amount or a minimum of Rs 2000 and a maximum of Rs 20,000. The person taking the loan also has to pay the stamp duty. Currently the interest rate on SBI Reverse Mortgage Loan is 10.95%.

Loan prepayment

Senior citizens are allowed to prepay their reverse mortgage loan without any penalty.

You can choose this payment option

Senior citizens can opt for monthly, quarterly, half-yearly, annual or one-time payment options for the reverse mortgage loan.