HomeCENT Swabhiman Plus, a life-long reverse mortgage annuity launched by Central Bank of India and Star Union Daiichi Life Insurance. This product is specially designed for the senior citizens. This product will provide them with a monthly or quarterly or half yearly or annual income as mutually agreed by then borrower and the bank against his/her home.
The earlier version of reverse mortgage scheme has been improvised to provide much more benefits due to feedback received about the insufficient funding of the 20 year cap on annuity payments. NHB asked banks and insurance companies to design a product such that its annuity would not cease after 20 years (though the individual was allowed to stay in the house till death). Thus the revised product provides continuous annuity till the survival of the individual as well as gets higher returns.
Insurers have arrived at the annuity figure using the mortality charts where as the banks discounted the property value at a specific rate to calculate payments. The interest rate under the new scheme by the Central Bank of India is 9.5% against 12.5%, resulting in higher payouts.
There are two choices
- Annuitant receives a life annuity at a constant rate till he/she survives.
- Annuitant will receive annuity for life with return of the purchase price on his death.
Criterion for eligibility
- Applicant should be above the age of 60 years
- In case of co-borrowers, atleast one of the borrowers should be above 60 and the other should be above 55 years of age.
IMPORTANT ' The owned property should be free from any hindrances.
The bank will lend up to 60-75% of the property value.
ADVANTAGES
- Provides life time income which can be used for any financial need like house renovation, medical or other personal expense etc.
- Borrower has the option of 25% of the
