Reverse Mortgage Loan
Reverse Mortgage Loan
Overview
We have developed the Product Reverse Mortgage Loan with an objective of supplementing present
income/Pension income in the form of regular stream of payments to cover genuine expenses of Senior Citizens.
Salient Features of Reverse Mortgage Loan
Loan Purpose
Finance to Senior Citizen on regular basis for the purpose of,
- Upgradation, renovation and extension of residential property.
- For uses associated with home improvement, maintenance/ insurance of residential property,
- Medical, family emergency expenditure, for supplementing pension/other income, meeting any other genuine need other than for speculative, trading and business purposes.
Eligibility norms for Reverse Mortgage Loan
- Should be Citizen of India above 60 years of age.
- Married couples will be eligible as joint borrowers for financial assistance, provided that at least one of them is above 60 years of age and the other not below 55 years of age.
- Should be the owner of a self- acquired/ inherited, self occupied residential property (house or flat) located in India, with clear title indicating the prospective borrower’s ownership of the property and should be free from any encumbrances.
Loan Amount
Up to Rs 2 Cr. (Subjected to market value of residential property as assessed
by the bank, age of the applicant and prevalent Interest rate.)
Loan Tenor Maximum up to 20 years.
Loan Tenor Maximum up to 20 years.
Repayment of Reverse Mortgage Loan
Outstanding loan (Principal + Interest) amount shall become due and payable six months after death of the last surviving borrower/spouse,
or the borrower permanently moved out to Old age homes or to an institution or to relatives.
Mode of disbursement
Any or a combination of following,
- Periodic Payments. (Monthly, Quarterly, Half yearly, annual). (Maximum monthly payment is capped at Rs. 50,000)
- Payment of Lump sum amount (restricted to 50% of the total eligible amount of loan subjected to maximum cap of Rs. 15 Lakhs).
Security
The loan shall be secured by way of Registered Mortgage of self-acquired / self
occupied residential property in favor of the Bank. Commercial property will not be eligible for Reverse Mortgage Loan.
Other Charges
