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PNB is the first Public Sector Bank to come out with a Reverse Mortgage concept based product for senior citizen titled "PNB Baghban". The product addresses one of the very important requirements of the society in the fast changing culture of Indian society. The salient features of the productare given hereunder:
| Objective |
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To address the financial needs of senior citizens owning self occupied property (house), for leading a decent life.
| Eligibility |
|
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The residential house/flat owner, who is resident of India, of the age of 60 years & above, is eligible to raise the loan under this Scheme.
| Qualifying/ Maximum amount
of loan/ Margin |
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The qualifying amount of loan will depend on the realisable value of residential property, after maintaining margin of 20%. The maximum qualifying amount of loan, alongwith interest, shall be restricted to Rs.100 lac.
| Rate
of interest |
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10% p.a. (fixed) subject to re-set clause of five years
| Diabursement/ tenor of loan |
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The loan shall be extended as regular fixed monthly payments during the loan period. i.e. 10-20 years or till the death of the last surviving spouse, whichever is earlier. Depending on the age of the beneficiary, a chart containing the amount of monthly instalments (calculated on "Reverse Annuity” basis) to be paid to the senior citizen borrower for different tenors of loan per lac of rupees is as under :-
|
Tenor (yrs) |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
19 |
20 |
|
Monthly Installment (Rs.) |
490 |
420 |
360 |
315 |
275 |
240 |
215 |
190 |
170 |
150 |
135 |
Payment of lump sum amount under the scheme can also be considered selectively on merit, for meeting housing needs and medical exigencies of senior citizen borrowers.
| Security |
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The loan shall be secured by way of equitable Mortgage of self aquired / self occupied Residential Property in favour of the Bank.The property will be revalued every 5 years and monthly loan installment will be re-fixed keeping in view revised ROI (after reset) and valuation of property.
| Repayment |
|
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Settlement of loan, along with accumulated interest, to be met by the proceeds received out of sale of residential property and any surplus to be paid to heirs. The loan will, as such, become due for recovery and payable six months after death of the last surviving spouse. However the legal heirs/legatee of the deceased borrowers will be given first option to settle the loan, alongwith the accumulated interest, without sale of the property.
| Pre-payment of Loan |
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The option to pre-pay the loan at any time during the currency of loan or later, is available. However, in case there is any takeover of loan by other financial institution/ bank, a charge of 2% on the amount taken over, will be levied.
| Upfront Fee |
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Amount equivalent to half month's loan instalment subject to Maximum of Rs.15,000/- + Service Tax & Education Cess
| Documentation/ Inspection Charges |
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NIL
| Right of Rescission |
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After the loan is sanctioned senior citizen borrower(s) shall be given upto 10 days time to relook into his requirements and if he so wishes to cancel the transaction for any reason whatsoever.
*For more details contact nearest Branch*
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