If there is no support in old age, your house will give you pension, this special scheme of SBI, you will get money at home without investment

Everyone does retirement planning to ensure a smooth old age. But, there are many people who get so caught up in daily expenses that they never get a chance to save. Money is not saved for hard times and by then old age sets in. For such people the country's largest government bank SBI has launched a great plan. Now in old age, you will get money sitting at home and you will not have to pay any tax on the income.

SBI has launched a reverse mortgage scheme, a saving grace for senior citizens who have not saved money for retirement. Government banks will give money to such people sitting at home after a certain age, so that they can meet their daily expenses or get treatment. The bank neither demands this money back nor has to pay any tax on the money received for the expenditure.

What is a reverse mortgage scheme?

This scheme of SBI has been launched especially keeping the elderly in mind. Under this, the bank lends money in exchange for residential property. A reverse mortgage means that the bank will lend money against your property. No interest will be charged on this and no need to pay EMI. Not only this, the ownership of the house will remain with the senior citizens throughout the tenure of the mortgage and they will not be evicted from it.

How does this loan work?

A mortgage loan is generally given only after 60 years. SBI's mortgage loan scheme is for senior citizens above 62 years of age. There is no maximum age limit in this. This loan is given against the property, but the best part is that if you want, you can use it every month like salary or pension. In case of an elderly couple, the age of the wife should also be at least 55 years.

What are the features of this loan?

• The property should be in the name of the person applying for the loan and should not have any dues or debts.
• The property against which the loan is being taken should not be more than 20 years old.
• A reverse mortgage loan is available only on a property where the couple has lived for at least 1 year.
• The loan amount is determined based on the property, which is Rs. 3 lakh to Rs. Can be up to 1 crore.
• If there is a home loan etc. running against the property, the applicant will be required to submit a No Objection Certificate (NOC).

What are its other conditions?

• Most banks offer a mortgage loan of Rs. 2,000 to Rs. Charges a processing fee of up to 20,000.
• This loan is available for a maximum tenure of 15 years.
• You can spend the loan amount anywhere, there are no restrictions or rules for this.
• Under Section 10(43) of Income Tax, the mortgage loan amount is considered fully tax free.
• The borrower does not have to repay the money, instead banks recover their money by selling the property in the absence of the owner or claimant.