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United Reverse Mortgage loan scheme
 
Eligibility
  1. Age of the Applicant: Min. 60 years on the date of sanction
  2. Married couples will be eligible as joint borrowers only and both of them should be of 60 years & above age.
  3. Ownership of a residential property (house or flat) located in India, with clear title
  4. Borrower(s) should be residing in the same residence at least for the last one year and the same be used as their ‘permanent primary residence’.
  5. The property should be self occupied one, an approved construction, not older than 20 years, maintained in good condition and must be free from all encumbrances.
  6. No Income Tax is due from the borrower(s).
  7. No income proof is required.
  • Commercial property will not be eligible for loan

Purpose of Loan

  1. Supplementing pension/ other income.
  2. Up gradation, Renovation and extension of Residential Property.
  3. Uses associated with Home Improvement, Maintenance/ Insurance of Residential Property.
  4. Medical and related emergency expenditures
  5. Repayment of an existing loan taken for and against the residential property to be mortgaged.
  6. Meeting any other genuine need.
Quantum of Loan
  1. Will depend upon the ‘‘Qualifying Amount’’ i.e. realizable value of the property minus margin.
  2. ‘‘Qualifying Amount’’ shall be restricted to Rs. 50 lakhs.
Margin

20% of the value of the property

Repayment of Loan

The borrower(s) need not service the loan account. However, loan shall become due on the occurrence of any or more the following events:

  • When the last surviving borrower dies, sells the home, or permanently moves out of the home.
  • The borrower(s) having failed to pay property taxes or maintain and repair residential property or failed to keep the home insured.
  • Borrower(s) having declared himself/ herself/ themselves bankrupt.
  • If the residential property so mortgaged to the Bank is donated or abandoned by the borrower(s).
  • If the borrower(s) effect any changes in the residential property that affect the security of the loan for the Bank.
  • Perpetration of fraud or misrepresentation by the borrower(s).
  • If a government agency needs the residential property for public use (for example, to build a highway).
  • If a government agency condemns the residential property (for example, for health or safety reasons).
  • Where the market value (realizable value) of the residential property has declined below the applicable ‘Qualifying Amount’ of loan or outstanding balance in the loan account, whichever is higher, at any time during the currency of the loan.
Security

The loan shall be secured by way of

  • Mortgage of owned & occupied residential property (English Mortgage)
  • “Registered Will” from the borrower in favour of Bank
  • An undertaking by the borrower that the “Registered Will” given to the Bank is the last ‘Will’ prepared by him/her at the time of availment of Reverse Mortgage Loan facility.
Interest Rate MCLR-Y+2.80% i.e. 12.25%
Settlement of Loan 1).The loan shall become due and payable when the last surviving borrower dies or would like to sell the home, or permanently moves out of the home for aged care to an institution or to relatives or for any other reason whatsoever.

2).Settlement of loan along with accumulated interest is to be met by the proceeds received out of Sale of Residential Property

3).The borrower(s) or his/her/their estate may be provided with the first right to settle the loan along with accumulated interest, without sale of property.

4)..A reasonable amount of time, say up to 2 months may be provided when RML repayment is triggered, for house to be sold.

5).Branches are authorized for sale of house/property as per rules within three months from the death of borrower(s)/ permanent eviction of property by the borrower(s)/ occurrence of any of the events (as per Para 19 below) triggering closure of loan account.

6).The balance surplus (if any) remaining after settlement of the loan with accrued interest shall be passed on to the estate of the borrower.
Prepayment of Loan 1).The borrower(s) will have option to prepay the loan at any time during the loan tenor.

2).There shall not be any prepayment penalties.

3)However, where loan is taken over by other Bank/FI, a prepayment penalty @2.00% shall be levied
 
You have a wide range of choice of deposits through as many as 10 different schemes offered by UBI. You may select them according to your best suited mode of meeting.