PURPOSE

• To provide a source of regular income for senior citizens who own self occupied house property in India.
• Income in the form of monthly payout or combination of monthly payout and lump sum.

Note:

• Lump-sum available for medical purpose only.

REVERSE MORTGAGE ELIGIBILITY

• The product is available only to senior citizens of India.
• Owns self-occupied residential property in India
• Individual, either singly or jointly with spouse as co-applicant.
• Minimum age of borrower to be 60 years and that of the spouse to be 55 years.
• Number of surviving spouses on the date of sanction should not be more than one

QUANTUM OF LOAN

• Minimum Rs.1 Lakh
• Maximum up to Rs.100 Lakhs
• Loan eligibility depending on value of property

Note:

• Loan amount is inclusive of future interest up to maturity.

LOAN TO VALUE

• In case the property located in Metro – 90% of the assessed value of the property
• In case the property located in Urban – 80% of the assessed value of the property

• In case the property located in other than Metro/Urban – 70% of the assessed value of the property

TENURE OF PAYMENT

• Minimum tenure of 15 years and maximum tenure of up to 20 years, if the borrower's age is between 60 and 65.
• Minimum tenure of 10 years and maximum tenure of 20 years, if the borrower's age is above 65

REPAYMENT/SETTLEMENT

• Borrower need not pay the amount in his/her lifetime.
• Loan shall become due and payable only when the last surviving borrower dies or opts to sell the home or permanently moves out of the home to an institution or to relatives.
• Settlement of loan along with accumulated interest is to be met by the proceeds received out of sale of residential property or prepayment by borrowers and his next of kin.

REVERSE MORTGAGE RATE OF INTEREST

• The rate of interest to be charged would be as per the extant guidelines issued from time to time.
• As on date, the rate of interest is 12.15% (Fixed).
• Rate of Interest to be reset in every five years
• Valuation / Legal / Stamp Duty / CERSAI / Memorandum registration charges as per actual

PREPAYMENT PENALTY

• There is NO prepayment penalty

SECURITY

• Self-occupied and owned residential property by the borrower.

INSURANCE & MAINTENANCE

• House property to be insured against fire, earthquake and other calamities by the borrower at his cost with usual Bank clause.
• Borrower to maintain the property in good condition and ensure to pay all taxes and charges on time.

REVERSE MORTGAGE EMI CALCULATOR

• Please click here for EMI Calculator