CENT SWABHIMAN PLUS-(REVERSE MORTGAGE LOAN)
To meet the financial requirements of Senior Citizens owning and occupying Flat / House.
Entry Age of Senior Citizen should be 60 to 99 years. Married couples will be eligible as joint borrowers for financial assistance. Should be the owner of a self- acquired, inherited or gifted self-occupied residential property. Prospective borrowers should use that residential property as permanent primary residence.
For upfront payment to Insurance Company towards purchase of Life Time Annuity. The borrower will be covered under individual policy assignable to bank.
The amount of loan will depend on market value of residential property, as assessed by the Bank, age of borrower(s), and prevalent interest rate. The minimum value of the residential property should be Rs.10 lakhs.
NATURE OF PAYMENT
The Loan component to the borrower shall be the sum of the lump sum loan payment received by him/her directly from Bank and the Policy purchase price paid to Insurance Company.
The Insurance Company shall remit the Annuity payments to the borrower directly by electronic transfer to the pre designated account of the borrower with the Bank
RATE OF INTEREST
RBLR = REPO + SPREAD+ CREDIT RISK PREMIUM
Low /Medium Risk category :
REPO+ 3.65 % + 0.00 % = 7.65 %
REPO RATE 4.00%)
0.15% of Loan Amount subject to Minimum of Rs 500/- and Maximum of Rs 10,000/-
The maximum loan disbursement tenure shall be till the demise of the last surviving borrower.
The loan shall become due and payable only when the last surviving borrower dies or would like to sell the house, or permanently moves out of the home for aged care to an institution or to relatives. Settlement of loan along with accumulated interest is to be met by the proceeds received out of return of purchase price and / or Sale of Residential Property .Other assets or estate or heirs of the deceased shall not be liable for settlement of loan amount.
PREPAYMENT OF LOAN
The borrower(s) will have option to prepay the loan at any time during the loan tenor.The Bank will not levy any prepayment penalty. The Bank shall inform the Insurance company about such prepayment.
Policy purchased through Reverse Mortgage loan can be surrendered at any point in time from the date of inception of policy upon complete foreclosure of Reverse Mortgage loan.
II OPTION II-SUD life RMLeA with return of Purchase Price:
This is a type of life-time annuity payment to senior citizens (for self and spouse) till demise of last surviving annuitant. In case of death of last surviving annuitant, the Insurance Company (annuity provider) returns the purchase price (initial net premium amount) to the assignee (Bank). The Bank may use it for partial set-off of the loan