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.

Under this scheme borrowers can avail loans using their homes as collateral security. They can opt for a lumpsum payment at the beginning or monthly or quarterly payments.

The borrowers need not repay the loan during their lifetime and can also continue to stay in their houses during their lifetime. Thereafter, the legal heirs have the option to repay the bank loan and redeem the property. If not, the bank will sell the property and liquidate the loan. Any surplus amount would be passed onto the heirs.

No upper limit
* There is no upper limit for the amount of loan a customer can avail under this scheme. The maximum tenure of such a loan is 15 years

Other players
* DHFL
* Punjab National Bank.

Interest Rate

The loan carries a fixed interest rate of 10.75% p.a. subject to reset at the end of every five years along with revaluation of security and re-adjustment of loan instalments, if necessary.

For a loan of Rs 1 lakh, the monthly payment to the borrower on a 10-year loan is Rs 468 and on a 15-year loan, it would be Rs 225. Similarly, for a loan of Rs 1 lakh, the quarterly payment to the borrower for a 10-year loan would be Rs 1,423/- and on a 15-year loan, it would be Rs 687

Succour for aged

*The loan will be given jointly if the spouse is alive, provided he/she is above 58 years of age
*The loan need not be repaid by the borrowers during their lifetime
* Reverse mortgage loan will be launched on October 12 and will be available at all branches of SBI

Software major Infosys achieved a milestone by crossing one billion dollar revenue for the quarter ended September 30, registering an year-on-year growth of 18.4 per cent.

“We have achieved another milestone by crossing $1 billion revenues in this quarter,” Infosys CEO and MD S Gopalakrishanan said in Bangalore.

Following is the time line of sensex rise in Indian stock market history. We reported similar milestone history when sensex hit 17,000 points.

It just took8 trading days to hit 18,000 from the 17,000 mark.

1000, July 25, 1990
2000, January 15, 1992
3000, February 29, 1992
4000, March 30, 1992
5000, October 8, 1999
6000, February 11, 2000
7000, June 20, 2005
8000, September 8, 2005
9000, November 28, 2005
10,000, February 6, 2006
11,000, March 21, 2006
12,000, April 20, 2006
13,000, October 30, 2006
14,000, December 5, 2006
15,000, July 6, 2007
16,000, September 19, 2007
17,000, September 26, 2007
18,000, October 09, 2007

Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.

* Deflation is when the general level of prices is falling. This is the opposite of inflation.