Should be Senior Citizen of India above 60 years of age.

Married couples will be eligible as joint borrowers for financial assistance. In such a case, the age criteria for the couple would be at the discretion of the PLI, subject to at least one of them being above 60 years of age and the other not below 55 years of age.

Should be the owner of a self- acquired, self occupied residential property (house or flat) located in India, with clear title indicating the prospective borrower’s ownership of the property.

The residential property should be free from any encumbrances.

The residual life of the property should be at least 20 years.

The prospective borrowers should use that residential property as permanent primary residence. Permanent primary residence refers to the self acquired, self occupied residential property where a person spends majority of his time. Factors that may be relevant in this regard include the address used for general correspondence, utility bills, bank statements, tax return, bank accounts and banking relations etc. However, all facts and circumstances may be considered for the purpose of determining that the residential property is the permanent primary residence of the borrower.

The amount of loan will depend on market value of residential property, as assessed by the PLI, age of borrower(s), and prevalent interest rate.

The PLIs will have the discretion to determine the eligible quantum of loan reckoning the ‘no negative equity guarantee’ being provided by the PLI. The methodology adopted for determining the quantum of loan including the detailed tables of calculations, the rate of interest and assumptions (if any), shall be clearly disclosed to the borrower.

The PLIs would ensure that the equity of the borrower in the residential property (Equity to Value Ratio - EVR) does not at any time during the tenor of the loan fall below 10%.

The PLIs will need to re-value the property mortgaged to them at intervals that may be fixed by the PLI depending upon the location of the property, its physical state etc. Such revaluation may be done at least once every five years, the quantum of loan may undergo revisions based on such re-valuation of property at the discretion of the lender.

Any or a combination of the following:

• Periodic payments (monthly, quarterly, half-yearly, annual) to be decided mutually between the PLI and the borrower upfront
• Lump-sum payments in one or more tranches
• Committed Line of Credit, with an availability period agreed upon mutually, to be drawn down by the borrower

The maximum monthly payments shall be capped at Rs.50,000/- or such other amount as may be notified by the Government of India.

Lump-sum payments may be conditional and limited to medical exigencies.

The maximum lump-sum payment shall be restricted to 50% of the total eligible amount of loan subject to a cap of Rs.15 lakh or such other amount as may be notified by the Government of India, to be used for medical treatment for self, spouse and dependants, if any. The balance loan amount would be eligible for periodic payments.

The nature of payments will be decided in advance as part of the RML covenants. PLI at their discretion may consider providing for options to the borrower to change. All covenants/ conditions stipulated by the PLIs shall be disclosed to the borrower in advance.

The loan amount can be used for the following purposes:

• Up gradation, renovation and extension of residential property.
• For uses associated with home improvement, maintenance/insurance of residential property
• Medical, emergency expenditure for maintenance of family
• For supplementing pension/other income
• Meeting any other genuine need

Use of RML for speculative, trading and business purposes shall not be permitted

The RML shall be secured by way of mortgage of residential property, in a suitable form, in favour of PLI.

Commercial property will not be eligible for RML.

The residential property should comply with the local residential land-use and building bye laws stipulated by local authorities, with duly approved lay-out and building plans.

The PLI shall determine the Market Value of the residential property through their external approved valuer(s). In-house professional valuers may also be used subject to adequate disclosure of the methodology.

The valuation of the residential property is required to be done at such frequency and intervals as decided by the PLI, which in any case shall be at least once every five years. The methodology of the revaluation process and the frequency/schedule of such revaluations shall be clearly specified to the borrowers upfront.

PLIs are advised not to reckon expected future increase in property value in determining the amount of RML.

10. Taxation:

All payments under RML are exempt from income tax under Section 10(43) of the Income-tax Act, 1961.

11. Provision for Right to Rescission:

As a customer-friendly gesture and in keeping with international best practices, after the documents have been executed and loan transaction finalized, Senior Citizen borrowers may be given up to three business days to cancel the transaction, the “right of rescission”. If the loan amount has been disbursed, the entire loan amount will need to be repaid by the Senior Citizen borrower within this three day period. However, interest for the period may be waived at the discretion of the PLI.