Loan against self-occupied residential property for senior citizens from Indian Overseas Bank

A loan against your self-occupied, residential property to pay off your debts and live the golden years of your life stress-free.

Indian Overseas Bank Reverse Mortgage Loan

This loan helps senior citizens get access to funds by mortgaging their self-occupied, residential property and convert it into liquid cash flows to meet their living expenses, personal needs, medical expenses or home renovation/repair/extension expenses. This loan scheme can also be used for the repayment of an existing loan taken for the residential property to be mortgaged or to consolidate your debts.

Features of IOB Reverse Mortgage Loan for Senior Citizens

Why this Loan?

  • The Indian Overseas Bank Reverse Mortgage Loan is meant for senior citizens who want to generate liquid cash flow to meet their living expenses or supplement pension income by pledging their self-occupied, residential property used as a primary permanent residence for this loan
  • The borrowers can avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans. This loan cannot be availed for trading or speculative purposes
  • There are no pre-payment charges for this loan

Loan Amount

  • The minimum loan amount offered under this loan scheme is Rs. 5 lakh. The actual loan amount is decided by the bank after reviewing the application on the basis of market value of the property, age of the applicant, etc.


  • The interest rate applicable to this loan is defined as the sum of two factors: one-year Marginal Cost of Funds based Lending Rate (MCLR) and Strategy Spread. As of October 2020, the MCLR of IOB is 7.50% and the Strategy Spread can range from 1.75% to 3.25%. The effective interest rate can be anywhere from 9.25% to 10.75%


  • The loan becomes payable after 15 years


  • The borrower must be an Indian citizen
  • The age of the borrower must be above 60 years
  • Only self-acquired, self-occupied residential property (independent house or flat) which is free from encumbrance and used as a permanent primary residence is eligible for this loan

Security Needed

  • The bank accepts mortgage of residential property by way of registered mortgage or equitable mortgage with a memorandum of deposit of title deeds in favour of Indian Overseas Bank
  • The bank may ask for additional collaterals to secure the loan on a case-to-case basis

Processing Charges

  • The bank charges 0.50% of the loan amount up to Rs. 15,000 for processing this loan

Documents Needed

  • Loan Application Form duly filled and signed by the applicant and co-applicant, if any
  • Two Passport Size Photographs of applicant and co-applicant
  • Personal ID Proof: Aadhaar Card, PAN Card, Passport or Driving License. PAN Card / PAN Card Issuing Letter is must
  • Signature Proof: PAN Card, Banker’s Verification, Driving License or Passport
  • Residential Address Proof (Any One): Aadhaar Card, Electricity Bill, Post-paid Phone Bill, Valid Rent Agreement
  • Income proof, income tax assessment or IT return documents of the borrower
  • Property related documents

Reference Facts

  • Indian Overseas Bank Website: and (net banking)
  • Headquarters: Chennai, Tamil Nadu
  • Call Centre Toll-Free Number: 1800 425 444