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Objective
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To meet the financial needs of senior citizens owning self acquired and self
occupied house property
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Purpose of Loan
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For generating cash flow/to supplement pension/other income for day to day
requirements, renovation/up gradation of house, to meet medical expenses, and for repayment of
outside institutional liabilities.
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Eligibility
for loan
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-
Should be a Senior Citizen of India, (above 60 years of age) as on
the date of application. Married couples will be eligible as joint Borrowers, subject to at least
one of them being 'above 60 years of age' and the age difference not being more than 10 years
between them.
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Should be the owner of a
self-acquired, self-occupied residential property (house or flat) located in India, with clear,
marketable title and free from any encumbrances. Loan is not available against ancestral property
or commercial property.
-
NRIs and PIOs are not eligible.
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Quantum
of the Loan
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The
minimum qualifying loan amount shall be Rs 2.00 lacs and the maximum qualifying amount of loan is
restricted to Rs.100 lacs.
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Other charges:
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Charges
towards, legal opinion, valuation of
residential
property,
processing charges, security inspection charges (annually), insurance, Registration charges etc.,
as applicable to V-Home Loan Scheme. [Refer Annexure-I given below]
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Rate
of Interest
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with effect
from 14.07.2008:
10.50 % (fixed)
with
reset clause once in every 5 years.
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Margin
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20% on the realizable value of residential property.
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Security
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Mortgage
of residential property where the applicant is living/self occupied.
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Eligible End use
of funds
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The loan amount
can be used for the following purposes:
-
For up gradation, renovation and extension of residential
property.
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For uses associated with home improvement, maintenance/insurance of
residential property
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To meet Medical, emergency expenditure for maintenance of
family
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For supplementing pension/other income.
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For repayment of an existing loan taken against the residential
property to be mortgaged.
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To meet any other genuine financial needs.
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Tenor
of the Loan
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Nature of
disbursement.
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Any or a combination of the following:[Refer Annexure-II & III
below]
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Repayment
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The loan shall become due and payable
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Prepayment of Loan
by Borrower(s)
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Closure of Loan
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The legal heirs of the borrower (s), after the death of borrowers
(both spouses), or his /her /their estate, will have the option, to settle the loan amount along
with accumulated interest, without sale of residential property.
Settlement of loan, along with accumulated interest, shall be met by the
proceeds received out of sale of residential property and surplus if any, shall be paid to the
legal heirs. The loan will become due for recovery and payable six months after the death of
the last surviving spouse.
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Provision for
Right to Rescission:
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After the documents have been executed and loan transactions finalized, the
senior citizen borrower (s) shall be given time up to ten days to cancel the transaction by way of “
the right of rescission” for any reason whatsoever.
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