| Salient Features | * Medical , emergency expenditure for maintenance of family.
* For supplementing pension / other income.
* Repayment of an existing loan taken for the residential property to be mortgaged.
* Meeting any other genuine need.(Speculative, trading purposes shall not be permitted).
* The lump sum payable is restricted to 20%, for all purposes put together and it is on selective basis, as a special case.
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| 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.
* The residual life of the property should be more than 20 years.
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| Quantum of Loan | * Maximum loan amount : Rs.40 lakh.
* Loan will be disbursed by Bank on regular monthly terms as annuity.
* The amount of loan will depend on market 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.
* 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.
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| Margin | 61% on the realizable value of property.
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| Processing fee | * NIL for existing customers.
* Rs. 285/- per lakh for others.
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| Repayment Period | * 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.
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| 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.
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| Documents to be submitted for processing the application | 1. 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).
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| Insurance | Property (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.
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| * BPLR = 12.50 % and BASE RATE = 8.00 % | |
