Parameter

Terms

Eligibility

ü      Senior Citizens above 60 years, including retired staff of our Bank. Married couples will be eligible as joint borrowers for financial assistance provided one of them is above  60 years of age 

ü      They should be owner of self acquired  residential property with absolute, clear title / conveyance and self-occupied and it should be  Principal residential house / flat , located in India.

ü      The property should be free from encumbrance and is saleable

ü      The residual life of the property should be more than 20 years

Eligible Loan amount

ü      The maximum amount of loan along with interest is restricted to Rs. 100 lakh  i.e. maximum loan amount would be Rs.40 lakh.

ü      The amount of loan will depend on market value of the residential property as assessed by the Bank.

Purpose of Loan

ü      Meeting any genuine need

(Reverse Mortage Loan(RML) for speculative, trading purposes shall not be permitted)

Monthly annuity payable by the Bank

ü      @ Rs. 555/- per Rs. 1 lakh loan

Interest Rate

ü      10% fixed , with reset clause
The interest rate will be reset once in five years

Security

ü      Mortgage of residential property in favour of Bank

ü      Bank reserves the right to seek additional collaterals

  Note : Commercial property will not be eligible for RML( Reverse Mortage Loan ).

Period of Loan

ü      15 years, with a provision to roll over, in case of need, after revaluation

ü      Fresh terms, as at the time of rollover, will be applicable.

Repayment terms

ü      The loan shall become due and payable
1. at the end of the stipulated repayment period or when the last surviving borrower dies, which ever is earlier,
2. When the borrower sells the home or permanently moves out of the home (“Permanent move” means neither the borrower nor any other co-borrower has lived in the house for one continuous year)

ü      Settlement of loan along with accumulated interest to be met by the proceeds received out of sale of residential property

ü      The borrower / his / her / their legal heirs will have option to settle the loan along with accumulated interest, without sale of property.  (If required, nomination of legal heirs can be insisted upfront).

Insurance of property

ü      The Assets-Flat/House property should be, insured against fire, earthquake and other calamities by the borrower