Reverse mortgage with a difference
The Central Bank of India, in collaboration with Star Union Dai-chi Life Insurance Co. Ltd, has launched a reverse mortgage loan product. Under the scheme, senior citizens would be able to get regular income throughout their lives against their house. They would have to mortgage the house with the bank.
The product, Cent Swabhiman Plus, is different from regular reverse mortgage products as it provides income throughout the borrower’s life. Other products usually have a 20-year tenure. If the borrower outlives the tenure, he is not asked to move out of the house, but payments stop.
Cent Swabhiman Plus will be available to those who are above the age of 60 years. The spouse needs to be above 55 years to become a co-borrower to the loan.
Arun Kual, executive director, Central Bank, says, “This is not a regular reverse mortgage product. Here the value of the house is passed on to the insurance company, which, in turn, makes regular payments to the beneficiary. The advantage is that all parameters being the same, the house owners can even get two times the value of the house as compared with a regular reverse mortgage product.”
Add health insurance to your car policy
Bharati AXA General Insurance Co. Ltd has introduced four add-on covers to its motor insurance policy, SmartDrive Private Car Policy, which becomes operational if the insured person’s vehicle meets with an accident. You need to take all the four covers together.
The first add-on cover is a regular health insurance policy that covers hospitalization expenses with a sum insured of Rs10,000. The premium payable on this cover is Rs75. The second is a hospital cash policy that pays cash up to Rs1,000 per day for 30 days of hospitalization. The premium payable is Rs100. The third covers ambulance charges for a sum insured of Rs5,000 at Rs100.
The fourth is the depreciation cover, which pays for the depreciation cost of vehicle parts that need to get replaced. This cover can be invoked only twice in one year.
New teaser home loan with 25-year tenure
Just a week after Kotak Mahindra Bank Ltd and ICICI Bank Ltd came out with their teaser home loan rate offers, Dewan Housing Finance Corp. Ltd (DHFL) has launched its competing product, Easy Easy Loan scheme. It is a 25-year home loan product meant for new customers.
The interest rate is fixed at 8% per annum for the first two years for loans up to Rs5 lakh. For loans between Rs5 lakh and Rs20 lakh, the rate has been fixed at 8.25% per annum for the first two years. The rate is 8.75% per annum for two years for loans above Rs20 lakh. Thereafter, the loan reverts to a variable rate across all loan amounts.
The offer is valid for all applicants who approach DHFL till 31 January with partial disbursement before 31 March. The loan can be availed in the range of Rs1 lakh-5 crore.
In an interview, Kapil Wadhawan, chairman and managing director, DHFL, said, “This scheme will help reduce the interest rate burden on the borrower. The elongated period will help reduce the EMI amounts.”
Customers with existing home loans from other institutions can also avail these benefits through the balance transfer facility.