Union Reverse Mortgage (URM) Union Reverse Mortgage is a scheme to provide a source of additional income for Senior Citizens of India who own self-acquired and self-occupied house property in India.

ELIGIBILITY

Number of Borrowers : Single Or Jointly with Spouse in case of a living spouse. Minimum age requirement of the first borrower is 60 year. Number of surviving spouses on the date of sanction of loan should not be more than one Minimum Age requirement of the spouse is 55 year.

PURPOSE OF THE LOAN

Up-gradation,renovation,extension and insurance of residental property. Medical emergency expenditure for maintenance of family. Supplementing pension/other income. Repayment of an existing loan taken for the residental property. Meeting any other genuine need as may be specified by the borrower and agreed to by the lender.

RESIDENCE

The property against which the borrower proposes to raise the loan should be his/her permanent primary residence. The residence (house/flat) should be self-acquired and self owned. Proof of owner ship of residence to be established. Borrower(s) will be required to inform the bank when they cease to use the residence as their permanent residence.

QUANTUM OF LOAN

The Loan amount along with interest will be 70% of the assessed market value of the property subject to Maximum of Rs. 50 Lacs Minimum of Rs. 1 Lac

MARGIN

30% (inclusive of interest upto maturity)

SECURITY

The loan shall be secured by way of equitable mortgage of residential property.

TENURE

Minimum tenure based on age of borrower as given below :   Age of main borrower Minimum Tenure of Loan 60-65 Years 15 years More than 65 Years 10 Years

DISBURSEMENT

Monthly payout or a combination of payout and lumpsum

RATE OF INTEREST

10.50% p.a.(Fixed)  Interest to be reset once in every 5 Years

PROCESSING FEE

0.5 % of the loan amount or Rs. 10000, whichever is lower

PREPAYMENT

Option to prepay the loan anytime during the tenure of the loan.  NO prepayment penalty