Kolkata, Oct 24 (UNI) The United Bank of India (UBI) has introduced a loan scheme-Reverse Mortgage Loan-under brand name of "United Revenue Loan Scheme" for senior citizens.
Under this scheme, senior citizens owning a house can avail of finance against the same. The loan will be delivered through periodic payment (monthly/quarterly/half yearly/annually) up to 15 years and a one-time lump sum payment (optional). Borrowers are not required to service repayment under this scheme.
Where spouse of the applicant is alive, he/she must join as co-borrower during payment period of loan. The surviving borrower will continue to receive periodic payment till full term.
The quantum of loan depends upon the market value of property.
The mortgaged property will be valued at an interval of 5 years and periodic payment will be reviewed with the change in market value of the property, an UBI release said today.
The rate of interest on loan accounts under this scheme is very attractive, ther Bank claimed.
Borrowers will continue to use the mortgaged property as their residence till they remain alive. The loan will be liquidated by sale of property upon ocurrence of certain events. Borrowers are also allowed to prepay the loan at any moment. The bank will provide opportunity to the borrowers/their legal heirs for repaying the loan before sale of property.