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Indian Bank- Reverse Mortgage Scheme for Senior Citizen
Features of the Loan:
The highlight of this loan scheme is its attractive monthly
lifetime annuity against mortgaged property. This loan will be adjusted
after the life time of borrower or spouse. Pre- closure option is also
available in this loan scheme.
Purpose of Loan:
In order to meet any genuine needs of Senior Citizens. Reverse Mortage Loan(RML) for speculative, trading purposes shall not be
permitted.
Eligibility of Loan:
- 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.
- The residual life of the property should be more than 20 years.
Quantum of Loan:
The amount of loan will depend on market value of the
residential property as assessed by the Bank. The maximum amount of loan
along with interest is restricted to Rs. 100 lakhs ie; maximum loan amount
would be Rs.40 lakhs.
Monthly Annuity payable by Bank:
For each Rs.1 Lakhs loan amount monthly annuity paid at the rate of Rs. 506/-.
Interest Rate:
The interest rate of India Bank Reverse Mortgage Scheme for Senior
Citizen is 10.50% fixed , with reset clause. The interest rate will be reset once in five years.
Security:
Commercial property will not be eligible for reverse mortgage loan.
Mortgage of residential property is favorable for this loan. Bank reserves the right to seek additional
collaterals.
Period of the Loan:
Tenure of loan will be extended to 15 years with a provision to roll over, in case of need, after revaluation.
Repayment of Loan:
- The loan shall become due and payable at the end of the stipulated repayment period or when the last surviving borrower dies, which ever is
earlier.
- When the borrower sells the home or permanently moves out of the home.
- Settlement of loan along with accumulated interest to be met by the proceeds received out of sale of residential property.
- The borrower / his / her / their legal heirs will have option to settle the loan along with accumulated interest, without sale of property.
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