|LIC Housing Finance launches Reverse Mortgage for senior citizens|
LIC Housing Finance launches Reverse Mortgage for senior citizens
Mumbai, February 28, 2008:
The reverse mortgage loan will be offered at a fixed interest rate subject to reset every 5 years. Under the reverse mortgage scheme, senior citizens can avail the loan either on a monthly payment or a lump sum payment or a combination of both. The property evaluated for the loan should have at least 20 years of residual life.
The maximum loan balance shall be restricted to 90% of the value of the property and the loan balance will include interest till maturity. The amount of the loan will take into consideration the property value, age of the borrower, rate of interest etc.
The loan will become due and payable only when the last surviving borrower dies or opts to sell the home or permanently moves out of the home to an institution or to relatives.
Speaking on the occasion of the launch of reverse mortgage, LIC Housing Finance Director & Chief Executive, Mr. S.K.Mitter said “Reverse Mortgages are loans that allow Senior Homeowners convert home equity into cash without leaving their homes and without making monthly mortgage payments.”
About the Company:
LIC Housing Finance Ltd is one of the largest housing finance companies in