Loan against residential property for senior citizens from State Bank of India

Unleash the power of your self-occupied, residential property to pay off your debts

State Bank of India Reverse Mortgage Loan

This loan helps senior citizens who want to meet their living expenses or supplement pension income by pledging their self-occupied, residential property for this loan. 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. This loan cannot be availed for trading or speculative purposes.

Features of SBI Reverse Mortgage Loan

Why this Loan?

  • The State Bank of India Reverse Mortgage 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
  • They can also avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans
  • There are no prepayment charges for this loan

Loan Amount

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


  • The interest rate for this loan is defined as the sum of two factors: External Benchmark based Rate (EBR) and Spread. As of October 2020, the interest rate applicable to this loan is 8.05% for SBI Pensioners and 9.05% for other pensioners


  • The loan becomes payable after 10-15 years depending on the age of the borrower(s)


  • 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)

  • As of October 2020, this information is not mentioned on the bank’s website. We suggest calling a bank representative before applying for this loan

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 equitable mortgage of residential property in the favour of State Bank of India

Processing Charges

  • The bank charges 0.50% of the total amount up to Rs. 20,000 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

  • State Bank of India Website: and (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 11 2211, 1800 425 3800