Eligibility and Document Requirements for a Reverse Mortgage Loan

Reverse mortgage loan are relatively new to India. As a result, there are a few confusions regarding its eligibility and document requirements. It is crucial for senior citizens to understand these requirements not just to make the application process convenient but also help them in choosing the right scheme.

The eligibility criteria for such schemes are discussed below –

• Though it depends from one financial institution to another, the minimum age to be eligible for such a scheme is usually 58 or 60 years.
• The property that is to be mortgaged should be in the name of the borrower or jointly with his/her spouse to be eligible for collateral. 
• For joint loan schemes, the minimum age of spouse is also usually mentioned. Though it varies from one lender to another, generally it must be at least 55 years of age.

The documents required to apply for a reverse mortgage scheme are listed below –

1. Government-issued photo identity proof like Voter ID, Aadhaar card, Passport, Driving Licence, etc. 
2. Address proof like electricity bill, telephone bill, ration card, etc. 
3. Copy of PAN card. 
4. Property documents including ownership deeds. 

While the list of documents required for such a loan scheme is very similar to that of a loan against property, the criteria are vastly different. Vitally, loans against property are also mortgage loans, but they have a more convenient repayment option.

 While in case of the former a borrower must repay a lump sum amount, in case of the latter, the repayment is spread over EMIs. This convenience of repayment and other benefits should be checked before finalising on the scheme.

For more good knowledge read about Main Factors to Consider Before Opting for A Loan Against Property