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What is a reverse mortgage?

The reverse mortgage is the process where you get a loan against the value of your home. Here, you mortgage your home to the bank and receive money in monthly installments within a fixed time period.

Why avail a reverse mortgage?

  • Custom Arrangement for Senior Citizens: Homeowners above 60 can take advantage of the equity value of their residential house to avail of funds through a reverse mortgage.
  • A Source of Additional Income: Senior citizens can create a comfortable income as 60-90% of the property’s value is sanctioned as a loan.
  • Save on Your Taxes: The amount received is in the form of a loan, making it free from taxes.

Eligibility criteria:

  • Type of Resident: Indian

  • Minimum Age:
    • 60 years for single borrowers
    • 58 years for joint borrowers

  • Loan Tenure: 10-15 years

  • Loan Amount:
    • Minimum: 3 lakhs
    • Maximum: Rs. 1 crore

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