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Ind Reverse Mortgage
Eligibility* 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.
* 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.
* The property should be free from encumbrance and is saleable and the house / flat to be located in India. However, inherited residential property if it is devolved on partition or owing to being the sole legal heir also can be accepted provided the title of the property is free from encumbrance.
* The residual life of the property should be more than 20 years
Amount of Loan The amount of loan will depend on realizable value of the residential property as assessed by the Bank. The realizable value of the property is calculated at 10% less than the Market Value assessed by Bank’s Panel Engineer.
 Maximum loan amount: Rs.40 lakh.
 Loan will be disbursed by Bank on regular monthly terms as annuity. Lump sum up to 20% of the eligible loan amount should be considered only if the amount is meant for utilization for meeting medical expenses of the Reverse Mortgage Loan Applicant/s.
 The maximum eligible lumpsum is restricted to Rs.15 lakhs.
 Revaluation of property to be done once in 3 years and interest rate will be reset once in 5 years. Periodic monthly payments will be based on such revaluation and the Loan to Asset Value shall be based on such revaluation. Borrowers consent for this will be obtained upfront.
Margin61% on the realizable value of property.
Processing feeNil for existing customers.
Rs.291/- per lakh for others
Interest Rates10.45% (Fixed to be reset every 5 years)
Repayment* 15 years, with a provision to roll over, in case of need, after revaluation
* Fresh terms, as at the time of rollover, shall be applicable.
Security Mortgage of residential property in favour of Bank
 Bank reserves the right to seek additional collaterals
 Commercial property will not be eligible for Reverse Mortgage Loan {Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located }
CERSAI registration (at Applicant’s cost) to be done
(i) For Loans up to Rs 5 Lakhs - Rs 50 + ST
(II) For Loans above Rs 5 Lakhs – Rs 100 + ST
Documents to be submitted for processing the application1. Completed Application Form with passport size photograph.
2. PAN Card copy.
3. Proof of residence such as Recent Telephone Bill / Electricity Bill / Property Tax Receipt / Passport / Voter’s ID.
4. List of legal heirs with name, age, address etc.
5. Sale Deed.
6. Approved Building Plan.
7. Title Deed Documents for 30 years.
8. Proof of title in the Revenue Records.(Legal Opinion from Advocate & Valuation of property from Engineer will be arranged by Bank at applicant’s cost).
Salient Features Loan to meet Medical , emergency expenditure for maintenance of family
 For supplementing pension / other income
 Meeting any other genuine need
(Speculative, trading purposes shall not be permitted)
InsuranceProperty (offered as security) to be insured at borrower’s cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies.
Other terms and conditions1. The loan amount need not be repaid during the lifetime of the borrower / spouse. The borrower / spouse can continue to stay in their home during their lifetime. 2. The option of pre-payment is available, without pre-payment charges.
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