SBI Reverse Mortgage Bank Loan (SBI RML)

SBI RML scheme provide a source of additional income for senior citizens of India who own self-acquired and self-occupied house property in India. It can be utilized as supplementing income, any personal expenses, house repairs, etc. Loan amount should not be used for speculative, trading and business purposes.

Eligibility of SBI Reverse Mortgage Loan

Reverse Mortgage Loan

  1. No. of borrowers: Single or jointly with spouse in case of a living spouse.
  2. Age of first borrower: Above 60 years
  3. No. of surviving spouses on the date of sanction of loan: Should not be more than one. Borrowers will have to give an undertaking that they will not remarry during the currency of the loan. If the borrowers choose to remarry, the loan will be foreclosed.
  4. Age of spouse: Above 58 years
  5. Residence: *Borrower should be staying at self-acquired and self owned house /flat against which loan is being raised, as his permanent primary residence.
    • (*Mobile/Telephone/Credit Card bills/ Certificate from the Housing Society where the borrower is staying / Affidavit made before the Executive Magistrate may be accepted as proof of residence.
    • *Borrowers will be required to inform the Bank when they cease to use this residence as their permanent residence.)
  6. Title of the Property: Borrowers should have a clear and transferable title in their names. Title verification and search report for a period of 30 years will be required to be obtained from the Bank’s empaneled advocate at borrowers’ cost.
  7. Title of the property and number of borrowers: Case– Title in single name and loan availed jointly with spouse. Title holder should make a Will in favour of the other spouse. The Will should confirm that this is the last Will and that it supersedes all earlier Wills, if any. The borrower to undertake that no fresh Will shall be made during the currency of the loan.
  8. Encumbrances: The property should be free from any encumbrances. However in case of property purchased by availing Home Loan from SBI and mortgaged to SBI, it will be considered for RML, subject to closure of the Home Loan account out of the proceeds of RML.
  9. Residual Life of property: Should be at least 20 years in case of single borrower and 25 years in case of spouse being below 60 years of age. Certificate from empaneled engineer/architect will be required to be obtained for this purpose, in addition to valuation of property.

Security of SBI Reverse Mortgage Loan

The RML shall be secured by way of equitable mortgage of residential property.

Tenor of SBI Reverse Mortgage Loan

  • Age of the younger of the borrowers between 58 and upto 68 years: 15 years
  • Age of the younger of the borrowers above 68years: 10 years OR till death of the borrower(s), whichever is earlier.

Disbursement of SBI Reverse Mortgage Loan

By credit to an SB account in the joint names of the borrowers operated by E or S.

Periodicity of availing loan

  1. Monthly / quarterly payments
  2. Lumpsum payment

Quantum of SBI Reverse Mortgage Loan Amount

The loan amount would be 90% of the value of property. Loan amount would include interest till maturity. The loan instalments payable to the borrower(s) would be as under for a loan amount of Rs.1 lac (at interest rate of 10.75% p.a.):

Loan Tenor (years)1015
Monthly instalments (Rs.)468225
Quarterly installments (Rs.)1,423687
Lumpsum payment (Rs.)36,02221,619

The maximum loan amount is kept at Rs.1 Crore (monthly payment Rs.22,500/- for 15 years) and minimum Rs.3 lacs (monthly payment Rs.675/- for 15 years).

Example of arriving at the monthly instalments: Property value:Rs.10 lacs

Qualifying loan amount (90% of property value: Rs.9 lacs

Tenor: 15 years

Monthly instalment: Rs. 225 x 9 = Rs.2,025/-

How to Calculate Instalment Amount in Reverse Mortgage Loan (Find RML Instalments)

Download MS Excel (XLS) Sheet


Repayment / Settlement of SBI Reverse Mortgage Loan

  • The loan shall become due and payable only when the last surviving borrower dies or opts to sell the home, or permanently moves out of the home for to an institution or to relatives. Typically, a "permanent move" may generally mean that neither the borrower nor any other co-borrower has lived in the house continuously for one year or do not intend to live continuously. Bank may obtain such documentary evidence as may be deemed appropriate for the purpose.
  • Settlement of loan along with accumulated interest is to be met by the proceeds received out of sale of residential property or prepayment by borrowers and his next of kin.
  • The borrower(s) or his/her/their legal heirs / estate shall be provided with the first right to settle the loan along with accumulated interest, without sale of property.
  • A reasonable amount of time, say up to 6 months, may be provided when RML repayment is triggered, for house to be sold.
  • The balance surplus (if any), remaining after settlement of the loan with accrued interest and expenses, shall be passed on to the borrower or the estate of the borrower/legal heirs.
  • Borrowers will be required to submit annual life certificates in the month of November every year. This certificate will also include clauses regarding marital status, and permanent residence of the borrowers, in addition to the balance confirmation as on 31st October of that year.
  • List of legal heirs will be obtained at the time of sanction of loan. With a view to avoiding disputes at the time of settlement of loan amount by legal heirs, specific instructions about inheritance of the property and payment of balance amount, if any, of the sale proceeds after settling the Bank’s dues, will be required to be part of the borrowers’ Will.

Foreclosure of SBI Reverse Mortgage Loan

The loan shall be liable for foreclosure due to occurrence of the following events of default.

  • If the borrower(s) has/have not stayed in the property for a continuous period of one year.
  • If the borrower(s) fail(s) to pay property taxes or maintain and repair the residential property or fail(s) to keep the home insured, the Bank reserves the right to insist on repayment of loan by bringing the residential property to sale and utilizing the sale proceeds to meet the outstanding balance of principal and interest.
  • If borrower(s) declare himself/herself/themselves bankrupt.
  • If the residential property so mortgaged to the Bank is donated or abandoned by the borrower(s).
  • If the borrower(s) effect changes in the residential property that affect the security of the loan for the lender. For example: renting out part or all of the house by creating a tenancy right; adding a new owner to the house's title; changing the house's zoning classification; or creating further encumbrance on the property either by way of taking out new debt against the residential property or alienating the interest by way ofa gift or will.
  • Due to perpetration of fraud or misrepresentation by the borrower(s).
  • If the government under statutory provisions, seeks to acquire the residential property for public use.
  • If the government condemns the residential property (for example, for health or safety reasons).
  • Any other event such as re-marriage of the borrower(s) etc which shall have an adverse impact on the loan settlement prospects.
  • Borrowers do not accept the revised terms on revaluation of property and interest reset at the end of every 5 years from sanction.
  • Any violation of the terms and conditions of RML.

Pre-payment of SBI Reverse Mortgage Loan

  • The borrower(s) will have option to prepay the loan at any time during the loan tenor.
  • There will be no prepayment penalty.

Valuation/Revaluation of property and option for the Bank to adjust payments of SBI Reverse Mortgage Loan:

  • After the initial valuation to determine the loan amount, subsequent revaluations will be done at intervals of 5 years. 
  • The Bank shall have the option to revise the periodic/lump-sum amount every 5 years along with revaluation. In the scenario of fall in property prices, the Bank may decide to revise the amount at any time earlier than 5 years. At every stage of revision, it should be ensured that the Loan to Value ratio does not exceed 90% at maturity.
  • If the Borrower does not accept the revised terms, no further payments will be effected by the Bank. Interest at the rate agreed before the review will continue to accrue on the outstanding amount of the loan. The accumulated principal and interest shall become due and payable as mentioned in clauses 9 and 10.

Processing fee of SBI Reverse Mortgage Loan

0.50% of the loan amount, minimum Rs.500/- and maximum of Rs.10,000/-

Right of Rescission

As a customer-friendly gesture and in keeping with international best practices, after the documents have been executed and loan transaction finalized, borrowers will have right of rescission up to seven days to cancel the transaction. If the loan amount has been disbursed, the entire loan amount will need to be repaid by the borrower within this period. However, interest for the period may be waived. Processing fee shall not be refunded in such cases.

Insurance and maintenance of house property of SBI Reverse Mortgage Loan

  • The house property will be insured by the borrower at his cost against fire, earthquake and other calamities.
  • The borrower shall ensure to pay all taxes, charges etc.
  • Bank reserves the right to pay insurance premium, taxes, charges etc. by reducing the loan amount to that extent.
  • The borrower shall maintain the property in good condition.

Operational issues of SBI Reverse Mortgage Loan

  • Type of facility: Non-renewable Overdraft without ledger folio charges. No cheque book / debit card will be linked to this account.
  • Availability of product: All branches.
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There are 76 Comments

whether the cibil report to be taken into consideration for sanction of loan.

PL advise how lumpsum is paid for a loan application for RS.4000000 payable in 14 age 61

I am currently staying in a rented flat. For the purposes of foreign educational loan for my daughter, I had mortgaged my independent house valued at Rs.80 lacs to SBI, to get a sanction of Rs.30 lacs for the educational loan. Hence Rs.50 lacs of the valuation is free from encumbrance/charge. Can I raise a Reverse Mortgage Loan for the balance Rs.50 lacs to maintain myself as a senior citizen?

Stanly Chirayath's picture

You can discuss the matter with bank personnel after requesting a counselling session (Normally this counselling session will be arranged by bank in every 5 years). There will be chances to enhance your loan amount if you convince the matter with bank.

The valuation amount you mentioned here, I'm not sure it is bank's valuation amount (Check what is your LTV). If it is, 40 lakhs is the maximum amount they will sanction as lumpsum ie., 50% of the valuation amount. In some cases it may further goes down upto 35%. It depends many factors such as tenor, whether lumpsum or monthly or so and so.

I am retired teacher. My age is 69 and my wifes age is 59.
I want to buy a new home in badlapur its cost is around 35 lac. Can I get RML for the same.

Stanly Chirayath's picture

You may please read eligibility section once again in this article. The main and most important factor is to have own property that can be mortgaged to bank rather your employment status. Valuation of your property exceeds Rs. 1 crore, sure you will get Rs. 35 lakhs subject to other terms too.

My brother-in-law who is now 79 years and sister who is 74 years,want to avail RML facility against their flat valued around 70.00 lacs.Kindly clarify whether they are eligible to avail the facility.

I am senior citizen of 64 years living in Ahmedabad. I intend to purchase new flat. For that I have approached SBI Ahmedabad. As per your internal circular the disbursement amount for 15 years for 1 lac is Rs 225 (10.75). I have calculated the principal amount and interest for 15 years for 40 lacs loan. According to me the principle amount is 16,20,000/- and interest component is 13,25,000. Why the difference is of 10 lacs. who can explain me properly in Ahmedabad. Please give me e-mail address of competent person so that i can send my working sheet to him for cross check.

Stanly Chirayath's picture

Be cautious while answering your phone calls. There may be chances for misusing your phone number by fraudsters. You are warned!

To the subject, I advise to visit your nearest RBO of SBI in your district. They are the people who finally sanction most of the loan application. Majority of ordinary Branch officials just do the preliminary verification. Final calculation, decision etc. have been decided by senior level officials from RBO / RCPC / RACPC / RASMECC.

I would like to enquire about a loan for my sister who is a widow residing in Gurgaon. She would like to avail of the reverse mortgage loan but we are unable to get clarity on how to get this done. Please let me have the contact number of the person who is responsible for this in Mumbai as I live in Mumbai and will be helping her after getting all the information.

Thank you.

Stanly Chirayath's picture

Have you contacted any Bank branch manager? If not, first you meet a bank manager nearest to your location.

I have original agreement and the share certificate and the registered receipt original agreement. Is this enough to get the loan

Stanly Chirayath's picture

The main document for RML Loan are property related, ie., Original Title deed and Tax receipts. If there is no issue or controversy or claim, rest of the documents can be obtained from concerned offices. The full details can be had from nearest Bank Branch.

my mother is widow,81 years old and living in my fathers house, the valuation of the house is 1 crore, could she get the reverse mortgage loan? if yes than rs. 3000000 would be lump-sum payment and rs. 40000 would be monthly payment for 10 years, so the total loam amount would be 3000000 + 4800000 = 7800000.So could she would be able to get this amount?

Stanly Chirayath's picture

Please read the main article and other comments once again. If you prefer full amount as lumpsum, then you will not get monthly installment or vice-versa. 30 to 35 % would be the maximum loan amount.

You mentioned that your mother lived in her husband's property. How about partition, rights and title deeds. Anything she holds as her property? The very first thing bank check whether the applicant has own title deed of the property they lived in.

I independently own a one BHK flat in Kamote new Panvel.. Its given on rent.Its appxmtly market value is Rs 40 lacs . I wish to take RML . I am 76 yrs old.I am staying in Vikharoli (E) Mumbai . Pls advise whom to contact.

my mother is widow 81 years old, living in my father's house. The title of the house is on my father's name.My mother get the family pantion every month as my father pass away after retirement from sbi. My father have not done any will. Could my mother would be able to get the reverse mortgage loan.The valuation of the property is 1 crore.

My grandfather is 87 years old.Can he get this loan ?
Also,how is the property valued ?

Stanly Chirayath's picture

There is no reason to reject RML request only because of 87 years of age.

SBI has their own consultants to value properties. It would be anywhere in between 50% to 80% of current market rate, ie., based on recent dealings at the same location.

My Father is above 60. and interested to get RML for Rs.25 Lacs from the residential property worth Rs.50 Lacs. His doubt is whether he can get the 25 Lacs as lump sum payment?

If valuation isRs. 2500000/. I am eligible for 90% is. 2250000. If I asked loan of RS. 2000000/ how much lumpsum I will get? Whether interest will charge on RS. 2000000/ or an amount I will be given as lumpsum?



Ref: "In case of property purchased by availing Home Loan from SBI and mortgaged to SBI, it will be considered for RML, subject to closure of the Home Loan account out of the proceeds of RML."

My daddy has already availed a housing loan from SBI. Outstanding amt. is there. Will he still be eligible to get RML? He is 69, widower, and a retired SBI employee.

Thanks in Advance.

Stanly Chirayath's picture

Its all about outstanding amount of the existing home loan. If the difference between valuation of your property and outstanding amount of the existing home loan gives marginal positive difference you can try RML.

The reference you quoted for purchase of the property, not mere home loan. In your case, have you purchased your property or availed home loan for building your house? I presumed you have just availed the home loan to build your house. Not to purchase the property.

Yes sir, we had taken the home loan a few years back for the construction of our house (of which the document is currently with the bank and we are staying in the same house).

Yes, we had taken the SBI home loan a few years back for the construction of our house itself, where we are currently staying (document is with the bank). So, will they allow an RML when the home loan is already there? Can't they deduce that amt. from RML amt.? Would appreciate your help.

Stanly Chirayath's picture

Yes, if they want to approve RML while inplace of Home loan, the outstanding amount of home loan to be cleared either from your personal fund or permission from RML. That's the reason I pointed, there must be reasonable positive difference required from the current valuation if you have no fund to clear the dues.

Consult with your bank manager for more detailed clarification.

The doubts got cleared. Thank you so much for helping out.. :)

Can a 70-year-old person apply for reverse mortgage from SBI? When I asked for a top-up housing loan, bank ppl said the bank computer/software is set so that it won't accept automatically when the borrower is already 70.

Stanly Chirayath's picture

Above 60 years is the minimum age required to get RML. No Upper age limit so far.

You are talking about Home loan which has age limit ie., upto 70 years and in some cases it goes upto 75 years.

Home loan and RML loan are different in all aspect. Don't compare these two loan schemes. You are requested to read purpose of the schemes once again.

First read home loan here.

Then read once agin about RML in this page.

{QUOTED: The loan amount would be 90% of the value of property. Loan amount would include interest till maturity. The loan instalments payable to the borrower(s) would be as under for a loan amount of Rs.1 lac (at interest rate of 10.75% p.a.):
Loan Tenor (years) 10 15
Monthly instalments (Rs.) 468 225
Quarterly instalments (Rs.) 1,423 687
Lumpsum payment (Rs.) 36,022 21,619

The maximum loan amount is kept at Rs.1 Crore (monthly payment Rs.22,500/- for 15 years) and minimum Rs.3 lacs (monthly payment Rs.675/- for 15 years).

Example of arriving at the monthly instalments: Property value:Rs.10 lacs

Qualifying loan amount (90% of property value: Rs.9 lacs

Tenor: 15 years

Monthly instalment: Rs. 225 x 9 = Rs.2,025/-

Sir can u tell me what is the formula used here to calculate the monthly amounts? How have you got it as 468 for 10 yrs and 225 for 15 yrs?

Second thing, is it our option to choose between lumpsum and periodic payments, or will it be given only in a mixed way by SBI (ie. half as monthly/quarterly and the other half as lumpsum)?

How much will be maximum amount of RML payble on reverse mortgaging my house having value of Rs.50 Lakhs with term of 20 years,for joint applicants aged 72 years& 63 years.However MV as per sub registrar's ap only about Rs.27 Lakhs.what is the RML interest?Can I get Lumpsum amount of Rs.18 Lakhs or what is the minimum amount lumpsum I can expect?

Is their a tax liability on the RML received?

I submitted my RML application personally with all documents mentioned in eligibility criteria on dt.10/5/16. Just now I have seen in SBI website on RML that only 50% of eligibility amount will be given as lumpsum and the balance in monthly/ quarterly/half yearly only that too with interest of 11.90% per annum.

The same was informed during my discussions with SBI chief Manager main branch,Vizianagaram on dt.31/5/16,though the interest they stated was 12% per annum.The valuation of my self owned / constructed home is about 50 Lakhs by the SBI panel valuer,and about Rs.26 Lakhs market value as per sub registrar's office MV.

Actually I prefer one time Lumpsum or one time lumpsum plus yearly / half yearly payment as I am an AP state govt. pensioner getting monthly pension of Rs.39156/- pm net, in the same bank from sto, Vizianagaram.

I Want to know for a period of 20 years term of RML, ages 72yrs&63 years couple, is it not possible to get at least Rs.18 Lakhs or more one time lump sum amount even with in the powers of the highest authority of SBI if not with in the powers of the chief Manager, SBI main branch, Vizianagaram?

Why transparency is not there in SBI and still Discretionary powers only prevails while considering loan sanctions?

Inspite of so many rules and regulations why the same were relaxed in cases relating to those richest defaulters running abroad or vote bank white ration card holders by our govts. politicians as election promises. Why no transparency in RML eligibility criteria or pension loan sanctions? Can't the discretionary powers be removed in approval of RML / Pension loans of at least to all the senior citizens alike?

If someone has house with 50% partnership with his brother, then can he avail RML by mortgaging that 50% property with his brother's written permission provided all other conditions required for availing RML are satisfied.

Stanly Chirayath's picture

In your statement "all other conditions required for availing RML are satisfied". How this statement be fulfilled? Read first sentence of the article: own self-acquired and self-occupied house property. And many other terms also can't be fulfilled in your case.

Am I eligible for SBI RML?
I am 72 yrs. old. My residential flat in C.H.Soc. is transferred by my father to me by way of transfer form of society.
My father is no more now.
Share certificates are duly transferred on my name.
I hold in my name Elecrticity bill, Ration Card, Society maintenance receipt, Aadhar card.

I have paid Processing fees, Search report fees, Valuation fees.
Is there any more cost involved further, like Stamp duty etc.
I want to know, how much total i need to pay before getting loan