How Senior Citizens Can Get Regular Flow Of Money Using This Scheme. Details

The constant flow of income after retirement is luxury that only a little enjoy.

Investment in pension benefits such as PPF and others can help you be ready for a lifetime after retirement, but they have certain limits.

For senior citizens who face the crush on money, the reverse hypotek scheme can be a good choice for managing constant cash flow. The government introduced this scheme to provide supplement income schemes to people above 60.

Under the reverse hypotek scheme, senior residents can receive regular monthly payments to their housing property.

They can mortgage property as collateral with banks or financial institutions and get loans to them. The maximum monthly payment under this scheme is limited to ₹ 50,000 in a year.

Eligibility

In order to meet the requirements to take loans under the reverse hypotek scheme offered by the bank, the applicant must be more than 60.

Loans can only conflict with the hypotek of homes that are fully owned and obtained by themselves that are not inherited or talented.

The pawned property must be at least 20 years old. This scheme is not available for senior residents who live in rental accommodation.

The bank will complete your loan quantum feasibility based on home conditions. Usually, the loan ratio to the value based on this scheme is 60-80 percent.

This means the property is worth ₹ 1 crore; The amount of loan can be between ₹ 60-80 LAKH. The maximum loan amount offered by most banks is ₹ 1 crore, even when the property value is more.

The maximum loan period offered is 10-20 years in all large banks.

The bank then disburses the amount of the loan to the borrower through periodic payments after considering the margin for interest costs and price fluctuations.

Periodic payments, also known as EMI inverse, are received by the borrower for the permanent loan period. With every monthly or quarterly payment, individual equity or interest in the DPR is reduced.

Repayment

The number of loans under the maturity scheme after the last survivor died. The borrower heir was given an option to complete the loan by paying the amount due to the accumulation of interest.

However, if the candidate cannot pay back the loan, the bank restores the amount with the sale of property.

The additional amount after selling property and completing loans is paid to the heir to the borrower’s law. If the sales proceeds are lower than the principal number plus the interest to be paid, the bank bears losses.