Obtaining a mortgage loan can be a tedious task for working individuals due to the numerous approvals and eligibility criteria involved. Loan against property for senior citizens may seem impossible due to the risk lenders face as they lack a steady source of income. However, there are many lenders and NBFCs that help pensioners secure mortgage loans.
Senior citizens in such a situation may consider utilising the loan against property for retired persons. If you have a lower CIBIL score, you can still take advantage of a Loan Against Property as it is a secured loan, and the property acts as collateral. Therefore, the loan approval is less dependent on the borrower's credit score.
The loan amount a senior citizen can receive against their property depends on the maximum tenure, which can go up to 15 years. The total loan against property for senior citizens in India typically ranges from 65% to 70% of the property value.
In the case of a senior citizen loan against property, such as housing or vehicle loans, the bank can repossess the asset and settle the loan. However, for unsecured loans, the bank must either relentlessly pursue the borrower or opt for a settlement, as they do not have the option to take possession of any asset.
Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.