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Home >> Personal Banking >> Credit Schemes >> Reverse Mortgage Scheme
 
 
 
Objective
 
To address the financial needs of senior citizens owning self occupied property (house) for leading a decent life.
 
Purpose
 
For generating income/supplementing pension/other income for day to day requirements.
 
Eligibility
 
Residential house/flat owner, resident of India, age of 60 years & above
The residential house/flat should be in his/her single name or jointly with his/her spouse, with clear title in his/her/their name(s)
In case of joint account, one of the spouse must be of the age of 60 years & above, while the age of other spouse should be minimum 58 years.
 
Qualifying/Maximum Amount of Loan/Margin

Realizable value of residential property after maintaining margin of 20%.

Maximum qualifying amount of loan along with interest shall be restricted to Rs.100 lacs.

Lump-sum payment be permitted only for medical treatment of senior citizen borrower, his/her spouse and dependents, if any, subject to ceiling of Rs.15 lacs

 

Disbursement/tenor of loan

The loan shall be extended as regular fixed monthly payments calculated calculated on ‘Reverse Annuity basis’ as per the chart given hereunder) during the loan period or till the death of the last surviving spouse, whichever is earlier. 

Amount to be paid to the senior citizen borrower for different tenors of loan per lac of rupees is as under :- This is subject to change on account of change in ROI

Tenor

10

11

12

13

14

15

16

17

18

19

20

Monthly Instalment

420

350

300

250

220

190

160

140

120

100

90

 
Rate of interest
 Base Rate + 2.50% p.a. (fixed) subject to re-set clause of five years
 
 
Processing Charges/ Upfront fee
 
Amount equivalent to half month’s loan instalment subject to Maximum of Rs.15,000/-.
 
Documentation Charges 
NIL
 
Security
 

Equitable Mortgage of Residential Property in favour of the Bank. Residual life of the residential property should be at least 20 years.

 
Repayment (Maximum)
 
The legal heirs of the borrower(s), after the death of borrowers (both spouses), will have the option, to settle the loan along with accumulated interest, without sale of property.  The loan will, as such, become due for recovery and payable six months after death of the last surviving spouse.
The borrower will have the option to pre-pay the loan at any time during the currency of the loan or later.
 
Prepayment charges
 
In case there is any takeover of loan by other financial institution/Bank, a charge of 2% on the amount taken over
 
Above are only salient features of the scheme. For details please contact nearest branch
 
 
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