Let us now look at the key operational parameters of the same.
Eligibility
> To be eligible you should be at least 60 years of age and your spouse not less than 55
> The property you own should be residential
> It should have clear title and be free from all encumbrances
> It should have at least 20 years of residual life
> It should be your permanent primary residence
Loan Amount
> The total loan amount would be around 60-80% of the value of your property
> The property would be revalued at least once every five years and the loan amount adjusted accordingly.
Loan drawdown
You can take the money in
> instalments (monthly/quarterly/half-yearly/annually with monthly cap of Rs.50,000) or
> lump sum (up to 50% of the total eligibility for medical expenses with max Rs.15 lakhs) or
> as a line of credit or
> a mix of all three
End-use
> You can use the money for day-to-day living, renovations, medical needs, etc. but not for speculation, trading or business
Interest rate
> As per the prevailing market rates and could be fixed or floating
Loan closure
> When the last surviving borrower dies or
> The property is proposed to be sold or
> The house is no longer the permanent primary residence
Prepayment
> One can prepay the loan at any time
> Normally there is no prepayment penalty
