Target Group / Eligibility:
- Senior Citizens owning self occupied residential property (House / Flat).
- Age minimum 60 years, spouse must be minimum 55 years;
- Married couples will be eligible as joint borrowers only.
- Others can be allowed loan singly.
- Property must be self-acquired. The house must be in reasonably good condition,
- Residual life of the property should be at least 20 years.
Purpose:
For supplementing existing income, to meet day-to-day requirements. For meeting other genuine needs.
Margin
40% in all cases
Loan Amount
Current market/ realizable value of the house property, less margin maximum Rs 1.00 crores.
Determination of monthly annuity of loan: -
The loan shall be disbursed in the form of monthly pension calculated as per the chart given hereunder.
Chart showing amount of monthly payment to the borrower per
Lac of loan for different tenors considering interest at 11%
|
Tenor (year) |
05 |
06 |
07 |
08 |
09 |
10 |
11 |
12 |
13 |
14 |
15 |
|
Annuity (Rs) |
1258 |
987 |
796 |
654 |
546 |
461 |
393 |
337 |
291 |
252 |
220 |
Example
Assuming
i) Value of Property - Rs 20.00 lacs
ii) Age of the Borrower - 65 years
iii) Rate of interest - 11%
iv) Period - 15 years
Margin Applicable - 40%
Loan Amount will be - Rs 12.00 lacs
Monthly annuity per lacs - Rs 220.00
Monthly annuity on loan amount - Rs 2640.00
| Mode of Payment: |
By equal monthly installments in the shape of pension,
OR
One time disbursal up to 40% of the limit allowed for meeting medical expenses, repair of house or any such pressing / unforeseen expenses. After disbursement of one time payment monthly pension will be suitably reduced. |
Chart showing amt of one time payment in lieu of monthly payment of Rs 1000/- to the borrower at various remaining period. |
| Remaining period (in months) |
12 |
24 |
36 |
48 |
60 |
72 |
84 |
One time payment |
11315 |
21455 |
30544 |
38685 |
45998 |
52549 |
58411 |
Remaining period (in months) |
96 |
108 |
120 |
132 |
144 |
156 |
158 |
180 |
One time payment |
63654 |
68353 |
72569 |
76394 |
79745 |
82781 |
85543 |
87951 |
Click here for Rate of interest
Click here for Processing Fees, Prepayment Penalty, Documentation Charges, Mortgage and other charges
Valuation of Residential Property:
Valuer on approved panel of the Bank should do the valuation of the property.
Properties having value of Rs 50.00 lacs and above shall be valued by two valuers. In case of variation of more than 10% in valuation done by two valuers, the value should be assessed by an Officer of the Branch through eye estimation and enquiry from neighbors and the value found realistic, of the two reports be considered.
The valuer, in all cases, apart from advising the present fair market value of the property, shall advise the forced sale/ distress sale value of the property.
Tax Liability of the borrowers
The taxation issue shall be taken care of by the borrower/(s) themselves and bank will not be responsible for the same.
Tenure
As long as both spouse are alive, maximum 15 years.
Repayment
During his/ her lifetime borrower can repay the loan amount with up to date interest and other charges if any by selling the house property mortgaged with bank or from any other source.
In case of death of borrower(s) the legal heirs will have the first option to settle the loan along with accumulated interest, without sale of property.
If the account is not settled within 6 month by the legal heirs property will be sold to recover bank dues and any surplus amount will be paid to legal heirs / nominee of the borrower.
Security
Registered/ Simple mortgage of flat / house.
Right of Rescission
Seven business days should be provided to borrower to cancel the transaction, the “Right of Rescission”.
Prepayment of Loan
The borrower will have option to prepay the loan at any time during the loan tenor.
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