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

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

Union Bank of India – Union Reverse Mortgage Loan

This loan helps senior citizens who want to meet their living expenses or supplement pension income by mortgaging 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.

Features of Union Reverse Mortgage Loan for Senior Citizens

Why this Loan?

  • The Union 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. However, this loan cannot be availed for trading or speculative purposes
  • Senior citizens can also avail this scheme as a consolidation loan and pay off their high-interest credit card debts and loans

Loan Amount

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

Interest

  • As of October 2020, this interest rate applicable to this loan is not mentioned on the bank’s website. Please call the bank customer care number to get the details

Repayment

  • Borrower’s Age Between 60 years and 65 years: The minimum tenure for this loan is 15 years and the maximum tenure is 20 years
  • Borrower’s Age Above 65 years: The minimum tenure for this loan is 10 years and the maximum tenure is 20 years
  • The loan becomes due and payable only when the last surviving borrower dies, the borrower opts to sell the mortgaged property or permanently moves out of the house
  • In the case of death of the borrower, the loan becomes due after six months and the legal heirs of the borrower can settle the loan along with cumulated interest without the sale of the property

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) & Processing Charges

  • Property in Metro Areas: The borrower can get up to 90% of the assessed value of the property which means that the minimum margin is 10% in these cases
  • Property in Urban Areas: The borrower can get up to 80% of the assessed value of the property which means that the minimum margin is 20% in these cases
  • Property in Semi-urban and Rural Areas: The borrower can get up to 70% of the assessed value of the property which means that the minimum margin is 30% in these cases

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 Union Bank of India

Processing Charges

  • As of October 2020, this information is not mentioned on the bank’s website. We suggest talking to a bank representative for more details

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:

  • Union Bank of India Website: www.unionbankofindia.co.in and www.unionbankonline.co.in (net banking)
  • Headquarters: Mumbai, Maharashtra
  • Call Centre Toll-Free Number: 1800 2222 44, 1800 208 2244