The National Housing Bank has launched a new scheme called the reverse mortgage through which you can get the money for your home that too without selling it.
For most of us, a house is a result of our lifetime savings. For the elderly; it is a dream come true.
But in case you have been too busy building your dream house and forgotten to save for your retirement, you could have a tough time post-retirement.
While inflation would eat up a major portion of your lifetime savings, getting a loan then also may not be as easy.
But then are you aware that the house that you have painstakingly built over the years can get you all the money you want?
The National Housing Bank has launched a reverse mortgage scheme through which you can get money for your home without selling it. The only prerequisite being that you should be 62 years or above with a house of your own.
Wondering how the scheme works? Here are the details.
If you are 65 years old and your house is worth Rs 40 lakh (Rs 4 million), under the scheme you would be able to avail of a loan equivalent to 60% of the total value of your house.
In the above case, the value will be Rs 24 lakh (Rs 2.4 million) and the pay back period 15 years. You can either take the whole loan amount at once or in installments of fixed amounts over a period of time.
The best part about the repayment is that it is not binding on you to make the repayment during your lifetime, because the bank offering the loan says that in case the borrower expires before repaying the loan the same will get transferred to his legal heir.
But then if you do have sufficient funds during the repayment period, you can very well pay off the loan. As per the scheme details, the loan and the repayment of the same would be based on your current age and the value of your house.
And if you are keen about going for it, all you need to do is go to any of the bank branches and avail of this scheme from the National Housing Bank.
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