Loan against residential property for senior citizens from Punjab & Sind Bank

A loan against your self-occupied, residential property to pay off your debts.

Punjab & Sind Bank PSB Sukhmoney (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 PSB Reverse Mortgage Loan for Senior Citizens

Why this Loan?

  • The Punjab & Sind Bank PSB Sukhmoney Reverse Mortgage Loan is meant for senior citizens who want 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

Loan Amount

  • The maximum loan amount offered under this loan scheme is Rs. 1 crore

Interest

  • Loans up to Rs. 20 lakh: The interest rate applicable to this loan ranges from 8.90% to 9.45% depending on the credit score of the borrower
  • Loans Above Rs. 20 lakh: The interest rate applicable to this loan ranges from 9.35% to 9.95% depending on the credit score of the borrower

Repayment

  • The loan becomes payable after 15 years

Eligibility

  • 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

Margin Money (Borrowers Contribution to Total Cost)

  • The bank may charge anywhere from 40% to 60% of the loan amount as margin depending on the age of the borrower

Note: Margin money refers to the amount the borrower contributes to the overall amount required. The bank will cover the rest. So, if the total amount needed is Rs. 20 lakh, a 20% margin means you will have to contribute Rs. 4 lakh. The bank will provide the balance of Rs. 16 lakh.

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 Punjab & Sind Bank
  • The bank may ask for additional collaterals to secure the loan on a case-to-case basis
  • The bank asks for co-obligation or personal guarantee of spouse

Processing Charges

  • The bank charges 0.50% of the total 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

  • Punjab & Sind Bank Website: www.psbindia.com
  • Headquarters: New Delhi, India
  • Call Centre Toll-Free Number: 1800 419 8300