PERSONAL LOANS-MORTGAGE & REVERSE MORTGAGE LOANS

PERSONAL LOANS

An amount given to an individual to use for personal benefit that must be paid off at a specified time.

Highly competitive. To be extended only to trustworthy / high net worth applicantsSalaried persons are the target constituents.Repayment ranges from 12 to 18 months Loan component based on repayment capacity. The fund utilization is flexible.The loans maximum limit is Rs.10 lakhs.

MORTGAGE LOANS

MORTGAGE LOANS

A mortgage is a legal contract on a property/house that secures a loan.

A Mortgage loan is offered on mortgage property which can range from personal mortgage property to commercial or real estate properties.

Properties are kept under mortgage as a security for paying off a loan.

Features:

Loans such as size of the loan, maturity of the loan, interest rate, method of paying off the loan and other characteristics can vary considerably.

Mortgage loans are generally availed of in cases of acquiring residential or commercial properties where the initial value is high.

Mortgage loans are lower priced than other loans as value of the property reduces the risk for the loan provider.

Advantages:

A mortgage makes home ownership affordable.A mortgage is a cost-effective way of borrowing.

Disadvantage:

Youll pay back A LOT MORE than you originally borrowed.

REVERSE MORTGAGE LOANSWould you like to live better today, and be moreprepared for the future?

A reverse mortgage could help...

REVERSE MORTGAGE LOANS

Reverse mortgages are a way for homeowners, 62 and over, to access equity they have in their homes.

A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in the home.

Benefits:

No monthly mortgage payments.No income and health requirements.Tax-free.You can receive the money in a way that suits your financial situation lump sum, line of credit, fixed monthly payments or a combination of any of these option.May not affect Social Security or Medicare benefits.The loan is not due until the last borrower permanently leaves the home.

Common Uses:

Paying for daily expenses.Making home repairs and improvements.Covering medical expenses.Purchasing long-term care insurance.Establishing trusts.Helping to financially support family members (e.g.funding grandchildrens tuition).Paying off loans or bills.Maintaining or improving quality of life.Something special - buying a new car or taking a vacation.

DIFFERENCES

MortgageReverse MortgageA mortgage is used to buy or refinance a home.A reverse mortgage is typically used to get cash out of your home.The lender lends you the money to buy or refinance the home.Instead of borrowing to buy a home, you are borrowing against a home that you already own.In exchange, you promise to pay back the lender the money you borrowed, plus interest, over many years.This allows you to use the cash now for expenses, and pay back the loan when you die or sell the home.