Reverse Mortgage – How it works? | Reverse Mortgage benefits

‘Reverse Mortgage’ is one of the best scheme that is introduced by the banks. Having own house on their name is the only asset that the bank look for and based on that house the money will be paid every month which reaches in the form of a pension. Under this scheme the money is given up to maximum 20yrs only but in the new scheme, the central bank of India is offering lifelong income by this scheme.

The central bank of India along with star Union Die- Chi life Insurance introduced a new scheme of mortgage. It introduced a new scheme ‘CENT Swabhiman Plus’ which is beneficial for the old age people which is designed with all the extra features when compared to that of the old scheme CENT Swabhiman. The specialty of this annuity is paying the amount till the person is alive and this amount can be used in the form of pension every month or can use for the medical expenses. Maximum 25% in the total of Rs.15 lakhs can be used for these purposes. This scheme is not for the purpose of trading and business and in case if the debtor dies the debt is to be paid by the children or else the bank had the right to sell the house and clear the debt. The people who are 60yrs of age and those wives who are 55yrs can utilize this scheme. The bank issues nearly 60-75% of debt based on the house. The interest is decided as 9.5% but it is low when compares to the last scheme interest which is 12.5%. The debtor have to live in the same house in which he took the debt or else his annuity will be cancelled.