Retirement Planning: Everyone wants to save money for old age, but this is not possible. There is so much expenditure on daily expenses and children’s education that we are unable to even raise money for it. SBI has launched a special scheme only for such people.
To ensure a smooth old age, everyone does retirement planning. But, there are many people who get so trapped in daily expenses that they do not get a chance to save. Money is not saved for difficult times and by then old age sets in.
For such people, the country’s largest government bank SBI has launched a great plan. Now in old age, you will get money sitting at home and you will not have to pay any tax on the income.
SBI has launched the reverse mortgage scheme, which is a saving grace for senior citizens who have not saved money for retirement. Government banks will give money to such people sitting at home after a certain age, so that they can meet their daily expenses or get treatment. The bank neither asks for this money back nor does it have to pay any tax on the money received for expenditure.
What is reverse mortgage scheme?
This scheme of SBI has been launched especially keeping the elderly in mind. Under this, the bank gives money in exchange for residential property. Reverse mortgage means that the bank will give money against your property.
Neither any interest will be charged on this nor there will be any need to pay EMI. Not only this, the ownership rights of the house will remain with the elderly during the entire period of the mortgage and they will not be evicted from there.
How does this loan work?
Mortgage loan is generally given only after 60 years. SBI’s mortgage loan scheme is for senior citizens above 62 years of age. There is no maximum age limit in this. This loan is given against property, but the best thing is that if you want, you can also use it every month like salary or pension. In case of an elderly couple, the wife’s age should also be at least 55 years.
What is the specialty of this loan?
- The property should be in the name of the person applying for the loan and there should not be any dues or debt on it.
- The property against which loan is being taken should not be more than 20 years old.
- Reverse mortgage loan will be available only on the property on which the couple has been living for at least 1 year.
- The loan amount is decided depending on the property, which can range from Rs 3 lakh to Rs 1 crore.
- If any home loan etc. is going on against the property, then it will be necessary for the applicant to submit No Objection Certificate (NOC).
What are its other conditions
- Most banks charge processing fees ranging from Rs 2,000 to Rs 20,000 on mortgage loans.
This loan is available only for a maximum period of 15 years. - You can spend the loan amount anywhere, there is no restriction or rule for this.
- Under Section 10(43) of Income Tax, the mortgage loan amount is considered completely tax free.
- The loan taker is not required to return the money, rather the banks recover their money by selling the property in the absence of the owner or claimant.
