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Our Bureau

Thiruvananthapuram, April 21 The State Bank of Travancore has launched a reverse mortgage loan scheme for senior citizens owning houses.

Under the scheme, the bank will extend loans to the clients against mortgage of their residential property. The loan will be sanctioned in the joint names of the property owner and the spouse. Customers will have the option to avail themselves of the loan amount in lump sum or in quarterly/monthly instalments, according to a statement from the bank.

The borrowers have to stay in the house and they need not make any repayment during their life time. However, on remarriage or on keeping the house vacant for more than one year, the loan has to be pre-closed.

The loan recovery starts on the demise of the last surviving borrower. If the legal heirs do not repay the loan with interest, the bank will recover the loan by selling the property. The loan will be for a maximum period of 15 years and the loan amount is fixed on the basis of the valuation of the property less margin. The bank is sanctioning the loan through selected branches.

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