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. The property should not be rented either in part or full.
For supplementing existing income, to meet day-to-day requirements. For meeting other genuine needs.
40% in all cases
Loan Amount :
Current market / realizable value of the house property, less margin maximum Rs 1.00 Crore.
Determination of monthly annuity of loan :
The loan shall be disbursed in the form of monthly pension.
Mode of Payment :
By equal monthly installments in the shape of pension,
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 onetime payment monthly pension will be suitably reduced.
Rate of Interest
Prepayment penalty :
2.25% of outstanding balances in case of take over.
Valuation of Residential Property :
valuation of the property to be done by Banks approved valuer.
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. A line of disclaimer must be mentioned in sanction letter of the borrower/(s)
Service Charges :
Documentation Charges- NIL
Mortgage Charges – Actual Charges incurred.
Service Charges :
As long as both spouse are alive, maximum 15 years.
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 any surplus amount if any will be paid to legal heirs / nominee of the borrower.