LIC Housing Finance Lauching Reverse Mortgage Scheme

LIC Housing Finance Ltd., who is a major Home Loan provider in India is going to launch Reverse Mortgage Scheme in coming month for senior citizens. In this scheme, senior citizens above 60 years of age would get loans against house or property. Loan amount will be considered according to the age of customer, rate of interest and value of property.

Reverse Mortgage scheme is a financial scheme in which a loan is provided by the lender against the value of the property. Loan amount can be borrowed in lump sump or in installments The loan amount is repayable by selling the property either on the death of the owner or at the end of mortgage tenure.

Reverse Mortgage scheme will benefit aged couples who don't have anybody to look after or don't have any source of income.

LIC hosing finance will provide loan by assessing the value of property and loan amount would be between 40 to 75 percent value of property under reverse mortgage scheme. Loan will be offered at fixed interest rate, and will be reviewed after five years.

Loan amount received by senior citizens under reverse mortgage scheme will remain tax free as announced by Finance minister in the budget this year.

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