IDBI bank offers personalised banking and financial solutions to their customers through a wide network of branches and ATMs. Reverse mortgage loan is one such product that they provide to their senior customers who wish to supplement their income. Indians believe that they are safeguarding their future by buying a property. They think that having a property will bail them out when they are in a dire need for raising finances and they are not wrong, having a property does help. Idle property can also supplement your income or pension.
Purpose of IDBI Bank Reverse Mortgage Loan
IDBI Bank offers Reverse Mortgage Loan to senior citizens to supplement their present income or pension in the form of regular payments to cover genuine expenses.
The loan is given to:
- Upgrade, renovate and extend your residential property.
- For home improvement, maintenance and to pay the residential property’s insurance.
- Medical, family emergency expenses, supplement income or pension and to meet genuine needs other than that of speculative, trading and business purposes.
Eligibility Criteria for IDBI Reverse Mortgage Loan
Individuals who wish to obtain an IDBI Bank Reverse Mortgage Loan need to satisfy the following criteria:
- The applicant must be a citizen of India.
- The applicant must be above the ages of 60 years.
- Married couples can be joint borrowers provided one of them is above 60 years of age and the other must not be less than 55 years of age.
- The applicant must be the owner of the self-acquired or inherited property or self-occupies residential property.
- The title deed must indicate that the applicant is the borrower and is free from any encumbrances.
Note: The criteria is subject to change at the sole discretion of IDBI Bank.
Documents Required for IDBI Bank Reverse Mortgage Loan
A borrower is required to furnish the following documents before availing a loan:
- Application form duly filled.
- Identity proof - either passport, PAN card, employee identity card or other valid proof.
- Address proof - either electricity bill, telephone bill, ration card or other valid proof.
- PAN card copy.
- Property papers that is the ownership proof and title deed.
- 3 passport sized photographs.
- Any other required documents as expressed in the application form must be submitted.
Features and Benefits of IDBI Bank Reverse Mortgage Loan
Some of the salient features and benefits of IDBI Bank Reverse Mortgage loan are:
- The loan is easy to avail and requires minimum documentation and is processed very quickly.
- Competitive interest rate is offered by IDBI Bank.
- The idle property can be used to avail funds.
- The loan amount offered can go up to Rs.2 crore subject to the market value of the property, the borrower’s age and prevailing interest rate.
- The loan tenure is offered for a maximum of 20 years.
- The outstanding loan is to be paid in 6 months after the death of the last surviving borrower or when the borrower moves to an old age home or to an institution or moves in with any relative.
- The loan can be disbursed through periodic payments that are made on a monthly, quarterly, half-yearly or on an annual basis. The maximum monthly payment is set at Rs.50,000. The payment can also be made in a lump sum. The lump sum payment is restricted to 50% of the total eligible loan amount subject to a maximum of Rs.15 lakh.
- The mortgaged self-acquired and self-occupied property is pledged as security.
- Commercial property is not eligible for IDBI Bank Reverse Mortgage Loan.
IDBI Bank Reverse Mortgage Loan Interest Rate
IDBI Bank charges an attractive interest on their reverse mortgage loan. The bank ensures that repaying the loan doesn’t become an additional financial burden on the borrower. The interest rate offered is 11% per annum. The rate of interest is fixed.
Note – Interest rates charged by IDBI Bank are at their sole discretion and are subject to change without prior intimation.