¹

^{Objective of the Scheme}

^{To provide a source of additional income for senior citizens of India who own self-acquired and self-occupied house property in India.}

²

^Eligibility

^a

^{No of borrowers}

^{Single or jointly with spouse in case of a living spouse}

^b

^{Age of first borrower}

^{Above 60 years}

^c

^{No. of surviving spouses on the date of sanction of loan}

^{Should  not  be  more  than  one.  Borrowers  will  have  to  give  an undertaking that they will not remarry during the currency of the loan.  If  the  borrowers  choose  to  remarry,  the  loan  will  be foreclosed.}

^d

^{Age of spouse}

^{Above 58 years}

^e

^Residence

^{Borrower  should  be  staying at  self-acquired  and  self  owned house /flat against which loan is being raised, as his permanent  primary residence.}

^{Borrowers  will  be  required  to  inform  the  Bank  when  they cease to use this residence as their permanent residence.}

^f

^{Title of the property}

^{Borrowers should have a clear and transferable title in their names. Title verification and search report for a period of 30 years will be required  to  be  obtained  from  the  Bank’s  empanelled  advocate  at borrowers’ cost.}

^g

^{Title of the property and number of borrowers}

^{If the property is in single name and loan is availed jointly with spouse.}

^{Title  holder  should  make  a  Will in favour of the other spouse. The Will should confirm that this is the last Will and that it supersedes all earlier Wills, if any. The borrower to undertake that no fresh Will shall  be made during the currency of the loan.}

^h

^Encumbrances

^{The property should be free from any encumbrances.}

^{However  in  case  of  property  purchased  by  availing  Home  Loan from  SBT  and  mortgaged  to  SBT,  it  will  be  considered  for  RML, subject to closure of the Home Loan account out of the proceeds of RML.}

ⁱ

^{Residual Life of property}

^{Should be at least 20 years in case of single borrower and 25 years in case}

^{of spouse being below 60 years of age.}

³

^Security

^{The  RML  shall  be  secured  by  way  of  equitable  mortgage  of}

^{residential property.}

⁴

^Tenor

^{Age of the younger of the  borrowers}

      ^{between 58 and upto 68 years:   15 years (Max.)}

^{Age of the younger of the borrowers}

      ^{above 68  years                       :   10 years (Max.)}

^{OR  till death of  the borrower(s), whichever is earlier.}

⁵

^Disbursement

^{By  credit  to  an  SB  account  in  the  joint  names  of  the  borrowers operated by E or S.}

⁶

^{Periodicity of availing loan}

^{1.   Monthly / quarterly payments}

^{2.   Lumpsum payment}

⁷

^{Quantum of loan}

^{The  loan  amount  would  be  80%  of  the  value  of  property. Loan amount would include interest till maturity.   The loan installments payable to the borrower(s) would be as under for a loan amount of Rs.1 lac (at interest rate of 12.00% p.a.):}

^{Loan Tenor (years)}

¹⁰

¹¹

¹²

¹³

¹⁴

¹⁵

^{Monthly instalments (Rs.)}

⁴³⁴

³⁶⁸

³¹³

²⁶⁹

²³¹

²⁰⁰

^{Quarterly instalments (Rs.)}

¹³¹⁷

¹¹¹⁴

⁹⁵⁰

⁸¹⁴

⁷⁰¹

⁶⁰⁷

^{Lumpsum payment (Rs.)}

³⁰²⁹⁹

²⁶⁸⁸⁹

²³⁸⁶³

²¹¹⁷⁷

¹⁸⁷⁹⁴

¹⁶⁶⁷⁸

^{The  maximum  loan  amount  is  proposed  to  be  kept at  Rs.1Crore (monthly  payment  Rs.20,000/-  for  15 yrs)  and  minimum Rs.3 lacs (monthly payment Rs.600/- for 15 yrs).}

⁸

^{Purpose of Loan}

^{Supplementing  income,  any  personal  expenses,  house repair,  etc. (Loan  amount  should  not  be  used  for speculative, trading and business purposes.)}

⁹

^{Repayment/ Settlement}

^{The loan shall become due and payable only when the last surviving borrower dies or opts to sell the home, or permanently  moves  out  of  the  home.}

^{Settlement of loan along with accumulated interest is to be met by the proceeds received out of sale of residential  property  or  prepayment  by  borrowers and his next of kin.}

^{The borrower(s) or his/her/their legal heirs / estate shall  be  provided  with  the  first  right  to  settle  the loan along with accumulated interest, without sale of property.}

^{Borrowers  will  be  required  to  submit  annual  life/ non re-marriage certificates  in  the  month  of  November  every  year.}

¹⁰

^Foreclosure

^{The   loan   shall   be   liable   for   foreclosure   due   to occurrence of}

^{the following events.}

^{·         If  the  borrower(s)  has/have  not  stayed  in  the property for a}

        ^{continuous period of one year.}

^{·         If  the property  taxes are not paid.}

^{·                   Keep the  house properly maintained, repaired and  insured.}  

^{·         If borrower(s) declare himself/herself/themselves bankrupt.}

^{·         If  the  r property mortgaged  to  the Bank is donated or abandoned.}

^{·         If the borrower(s) effect changes in the property  that  affect  the  security  of the loan.}

^{·         Due to perpetration of fraud or misrepresentation by the  borrower(s).}

^{·         If the government under statutory provisions, seeks to acquire the residential property for public use.}

^{·         If the government condemns the residential property   (for   example,   for   health   or   safety reasons).}

^{·         Re-marriage  of  the borrower(s).}

^{·         Borrowers  do  not  accept  the  revised  terms  on revaluation of property and interest reset at the end of every 5 years from sanction.}

^{·         Any  violation  of  the  terms  and  conditions  of RML.}

¹¹

^{Pre-payment of loan}

^{The borrower(s) will have option to prepay the loan at any time during the loan tenor.}

^{There will be no prepayment penalty.}

¹²

^{Valuation/Revaluation}

^{of  property  and  option for  the  Bank  to  adjust payments.}

^{After  the  initial  valuation  to  determine the loan amount,}

^{subsequent  revaluations  will  be  done  at intervals of 5 years.}

^{The Bank   shall   have   the   option   to   revise   the periodic/lump sum}   

^{amount every   5   years   along with revaluation.}

¹³

^{Interest Rate}

^{12.00%  p.a. (Fixed) subject to reset every 5 years.}

¹⁴

^{Processing fee}

^{0.50%  of  the  loan  amount,  minimum  Rs.500/-  and maximum of Rs.10,000/-}

¹⁵

^{Right of Rescission}

 ^{In  keeping  with international  best  practices,  the borrowers will have right of rescission up to seven days to cancel the transaction without interest after availing the loan.}

¹⁶

^{Insurance and maintenance of house property}

^{The house property will be insured by the borrower at his cost against fire,, earthquake and other calamities. The borrower shall ensure to pay all taxes,, charges etc. and maintain  the  property  in good condition.}