Indian Bank, a leading bank in India, offers several reverse mortgage services to the senior citizens of India. It does not provide reverse mortgage loan for speculative and trading purposes.
The maximum amount of the reverse mortgage loan, with the interests, is restricted to Rs.1, 00,000. The loan amount depends on the residential property's present market value. The bank itself assesses the value of that property.
Loan Features:
1. The amount of monthly annuity is Rs. 555 per loan worth Rs. 1 lakh.
2. Pre- closure option is always available.
3. The bank will adjust the loan after the lifetime of the borrower, or spouse.
Eligibility:
(1) The candidate has to be a senior citizen, above 60 years, of India.
(2) Married couples are also eligible for reverse mortgage loans as joint borrowers but one of them should be a senior citizen of India.
(3) The residual life of the home property should be over 20 years.
(4) The mortgage property must be free from encumbrance.
Security of Loan:
The Indian Bank addresses the residential property of the borrower as a loan security. Also, the bank can seek some additional collateral for mortgage security.