SBI to offer reverse mortgage loan

State Bank of India is launching a reverse mortgage loan for senior citizens, starting from October 12. Called the “SBI Reverse Mortgage Loan”, it will be available for customers above 60 years. The loan would be given jointly if the spouse is alive, provided he or she is above 58 years. The loan is available at all SBI branches. It carries a fixed interest rate of 10.75 per cent per annum, which is subject to reset at the end of every five years along with revaluation of security and re-adjustment of loan instalments, if necessary. The maximum tenure of such a loan is 15 years, said Mr Sangeet Shukla, Chief General Manager, Personal Banking, SBI. Other players in this segment include DHFL and Punjab National Bank.