• Union Bank of India (UBI) Reverse Mortgage Loan Eligibility

    Reverse mortgage loan is one such product that they provide to their customers that allows them to take loan to meet their financial requirements for business or personal purpose. People in India first try to ensure their security and the first thing they do is buy themselves a property to safeguard them against all the financial difficulties that they might face in the future. Having a property will also allow you to take mortgage against the property and make the most of the idle property.

    Purpose of Union Bank of India Reverse Mortgage Loan

    A source of income on a regular basis to the senior citizens in the form of monthly pay-outs.

    Lump sum pay-outs are made for the medical purposes as well.

    Eligibility Criteria for Union Bank of India Reverse Mortgage Loan

    Individuals who wish to obtain a Union Bank of India Reverse Mortgage Loan need to satisfy the following criteria:

    • The borrower must be an Indian citizen over the ages of 60 years.
    • The applicant must own self-acquired and self-occupied residential property in India.
    • Individual can apply either as a single individual or jointly with the spouse that is if the spouse is older than 55 years. The spouse can be the co-applicant for the loan.
    • The residential property must be the applicant’s permanent primary residence.
    • The property must be self-acquired and self-owned.

    Note: The criteria is subject to change at the sole discretion of Union Bank of India.

    Documents Required for Union Bank of India Reverse Mortgage Loan

    A borrower is required to furnish the following documents before availing a loan:

    • Application form duly filled.
    • Proof of identity that can be either passport, PAN card, employee identity card or other valid proof.
    • Address proof that can be 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 Union Bank of India Reverse Mortgage Loan

    Some of the salient features and benefits of Union Bank of India 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 Union Bank of India.
    • The idle property can be used to avail funds.
    • The minimum loan amount offered is Rs.1 lakh.
    • The maximum loan amount offered is Rs.100 lakhs subject to 90% of the market value of the property.
    • The minimum loan tenure is 15 years and maximum is 20 years if the borrower is between the ages of 60 - 65.
    • If the borrower is above 65 years, then the minimum loan tenure is 10 years, the maximum loan tenure is 20 years.
    • Prepayment penalty is not charged if the loan is adjusted with funds from legitimate sources.
    • A penalty of 2% is charged on the balance on the preceding 12 months in the event the loan is taken by any other bank or if it is adjusted but the borrower in lump sum from any third party source.
    • The equitable mortgage of the residential or commercial property that is in the name of the borrower has to be provided as security.
    • Property insurance must be taken towards the value of the property.
    • You need to open an account with Union Bank of India to avail and service the reverse mortgage loan.

    Union Bank of India Reverse Mortgage Loan Interest Rate

    Union Bank of India 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 will be at the discretion of the bank. The rate of interest is reset every five years.

    Note – Interest rates charged by Union Bank of Indiaare at their sole discretion and are subject to change without prior intimation.

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