🔑 Key Features of a Reverse Mortgage Loan
| Feature | Details |
|---|---|
| Eligibility Age | At least 60 years (spouse can be 55+) |
| Loan Purpose | To provide regular income to seniors |
| Ownership | Must fully own a self-occupied residential house |
| Loan Amount | 60%–80% of the property’s market value |
| Payout Options | Monthly/quarterly income, lump sum, or line of credit |
| Tenure | Up to 20 years or till borrower’s lifetime |
| Interest Rate | Around 9% – 12% p.a., compounded |
| Repayment | After the borrower’s death or if they permanently vacate the home |
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💡 How Does It Work?
Senior citizen pledges their house to the lender.
Lender pays them a fixed amount every month or as a lump sum.
The borrower continues to live in the house.
After their death, the heirs can:
Repay the loan and keep the house, or
Let the bank sell the house to recover the loan.
Any extra amount (after loan recovery) goes to the legal heirs.
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🧾 Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Age | 60+ (55+ for spouse if joint) |
| Ownership | Fully owned, self-occupied residential property |
| Location | Property must be in India |
| Condition | Property should be free of litigation and well maintained |
| Income | No regular income required (meant for those with limited cash flow) |