Bangalore-based Vijaya Bank, on Monday, launched its Reverse Mortgage Loan scheme for citizens aged over 60-years having self-acquired and self-occupied residence. The loan is also available to married couple jointly, subject to one of the spouses being above 60-years of age.

The scheme is a handholding facility, which seeks to help the senior citizens to derive a regular stream of cash flow to support themselves in their old age. It will provide regular monthly cash flow support towards supplementing their other income or to meet their regular expenses on livelihood.

The borrower also has the option of availing a part of the loan as lumpsum component up to 30 per cent of the discounted value of loan amount, towards meeting medical expenses or expenses on other emergencies, or for renovation and improvement of the property.

The minimum amount of loan under the scheme is Rs 2 lakh whereas the maximum amount is pegged at Rs 1 crore. The bank has priced the scheme at a fixed interest rate of 10.5 per cent, which shall be reset once every five years.

The loan will be available for a minimum tenure of seven years with a maximum tenure of 15 years. The scheme provides for further extension of the period at the end of the original tenure subject to the then prevailing value of the property and the needs of the surviving borrower.

On death of borrowers during the loan period, the legal heirs of the borrower have the option to pay the loan amount and take possession of the property.