AllBank Reverse Mortgage Scheme
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.

Mode of Payment:

By equal monthly installments in the shape of pension, based on the value of house and age of the applicants.

OR

One time disbursal up to 40% of the limit allowed for meeting medical expenses, repair of house or any such pressing / unforeseen expenses may be allowed. After disbursal of one time payment monthly pension will be suitably reduced.

Rate of Interest:

11.00% fixed subject to reset clause of three years

Processing Fees:

One month annuity maximum Rs 10000/=

Valuation of Residential Property:

Valuer on approved panel of the Bank should do the valuation of the property.

Documentation Charges- NIL

Mortgage Charges – Actual Charges incurred

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. 

Or

The loan is repaid along with accumulated interest, through sale of the house property. The borrower(s) / heir(s) can also repay or prepay the loan with accumulated interest and have the mortgage released.

Security:

Registered/ Simple mortgage of flat / house.

Right to 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.

Delivery Channel:

Initially from selected RBBs and Branches of 4 Metro centers i.e. – Delhi NCR, Greater Mumbai, Greater Kolkata and Chennai.

Counseling and information to Borrowers:

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