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 78 Comments

Sir, I am 60yr old and my wife is 49 yr old and my self acquired house worth around Rs. 1.00 crore. I need Rs. 40,00,000/- for my daughter's marriage. whether I am eligible for a loan under RML. If so which bank I have to approach for a speed loan process and for a lower interest rate and lesser charges. R.Sudhakar Reddy

I approached SBI Padmanabhanagar for RML loan. They said the scheme is scrapped. Does RML exist in SBI or is it scrapped?

Has the RML loan in SBI been scrapped? I went to SBI today n they told me the loan was scrapped.

My grandfather took a RML from SBI in 2008 against his house. The assessed value of the property was Rs. 66.50 Lacs. He was in need of Rs. 5 Lacs at that time so he took that amount. Since then he has taken nothing from the bank. Now he is in need of Rs. 25 Lacs and wishes to receive the amount through the same. Can he get another payment in lump sum?

Stanly Chirayath's picture

You can make a property revaluation request to bank. I hope your father will be eligible for some more fund depending current market value of the property.

I am a senior citizen aged 71 and my wife is 68 years old.I own a house in a prominent locality in Bangalore,with 2550 sft land and 2600 sft built up area(g/F-30 years old and f/F 10 years old.I intend to occupy the first floor, which is mandatory for RML.The balance of loan with SBI is Rs.4.60 lakhs. The present value as per guidelines is itself about rs.3 crores.I need about Rs.50 lakhs for repairs and for education of my grand daughter and to meet my medical expenses. Can I repay part of loan availed for my daughters marriage and other expenses.Your advise will be useful to take decision. Regards,M.S.Balu

Stanly Chirayath's picture

If you are confident that your building will have 20 years "Residual Life of Property", I don't see any obstruction sanctioning RML. It has to be assessed by SBI authorized engineer.

One thing is not clear from your query - the status of ground floor?

RML fund can be used other than speculative, trading and business purposes.

The RML amount depends the valuation done by SBI personal.

My father inherited the land from his parents and had built a house on his own. Kindly advise if he is eligible for the RML.

Is it possible to pay only interest every year towards reverse mortgage loan? So that i can pay the entire loan (only principle amount) at the end of the tenure?

I have a close relative of mine who is citizen of USA now and wants to avail funds against a property owned by family to be ultimately gifted to him. He wants to take as much as funds by RML route for his urgent need of funds in US.Is this permissible and if so which bank branch is recommended in Mumbai who shall officially transfer funds in USA in his account.


sir, I took loan in September 2011 at the rate of interest of 12%. At present the RBI has reduced repo rate from 8% to 6%. The SBI HAS ALSO REDUCED housing loan interest from 8.75% to 6.25%. I request the chair woman of SBI to be kind to reduce RML intest rate to 9% atleast.

I have already availed mortgage loan in a bank for Rs. 16lakhs for a ROI 11.5. Is possible to transfer a loan to some other bank which has lower ROI. Also am a senior citizen and the repayment period is 10yrs. My son is repaying EMI for me. Advise me suitably....

Stanly Chirayath's picture

You have not mentioned what type mortgage loan you have obtained. Most of the bank loans except Reverse Mortgage Loan can be transferred to other banks subject to satisfying both bank's terms and conditions. If it's RML, you have to close it and apply a fresh RML to new bank.

My father is retired pentioner of govt of Assam( he is a doctor). For some of our personnel expanses he wants to raise a loan of 13lacs from sbi. Also we have a personal loan in sbi around 4.7lacs which we will close once he gets the RML . My father is 70yrs old nd my mother is 62 so can he get a RML by mortgaging our residentsial property for 10yrs tenure which valuation is around 1.2-1.3 crore. And can tell me how much will be the estimated emi if we wants to repay the loan every month for 10 yrs.

Stanly Chirayath's picture

You may get RML loan subject to bank's terms and condition. The amount is based on valuation done by bank. Your valuation won't be accepted by bank.

About EMI: For RML Loan, there is no EMI. After loan tenure bank will inform you to either close the loan repaying the full loan amount or they sell the property as per their procedure. If excess amount is found, it will be your part.

That means RML has no EMI.

RML talks about Lumpsum or Periodic payment when the loan amount is sanctioned. Is it possible to get Lumpsum payment during the tenure of the Loan towards maintenance / house repairs.


Hi, my grandfather mortgaged our house for RML with SBI. I wanted to inquire if I could remortgage the house again for the education loan with SBI. There is an outstanding amount.
Please suggest to me what are the options with me?

It is useful to sr.citizens if overdraft facility was provided on SBI RML.we can pay some amount when we have take when needed during the loan period. Be considerate

I took RML in 2011 sep. Since the repo rate was reduced 2.75 so far . The benefits were not transferred to loan takers . I requested the authority to extend the benefits or apply interest rates of housing loan to the sr.citizens who are RML takers. Be considerate in solving the problem

Namskar SIR.

I'm retired Gujarat govt employee and I have my own residential House, now it's market value is INR 45 lacs.
I want Loan 20 lacs
Now me and my wife alone and no Source of income.....
I will repay it in 5 years...
Plz inform me how can I submit my application online?
Due to corona ....plz inform me first....
In our Branch and Main Branch of SBI, no response... Because of load of work, and they don't know about this type of RML facility provided by bank to senior citizen....
Plz reply me


My account is at SBI Surendranagar (06498), Handloom road, Surendranagar Branch in Gujarat.

I m retired Gujarat govt employee and I want senior citizen reverse mortgage loan against my property ....
I had contacted Branch manager for this.
He refused me for this Loan.
Plz help me, this type of Loan is available in metropolitan city and why in district place stopped?
I m existing account holder since 1987.
Plz inform me how can I get Loan on my residence home... Under the bank scheme senior citizen reverse mortgage loan....

I m waiting for reply.