Retirement should be a time to enjoy the fruits of your hard work, not worry about finances. With Bank of Baroda Reverse Mortgage Reverse Mortgage Loan, senior citizens can unlock the value of their self-owned home to create a steady income stream. This loan helps those without enough savings to live comfortably by providing monthly payments, all while they continue to stay in their home. There’s no need to worry about repaying the loan during your lifetime—BOB has got you covered.
Bank of Baroda Reverse Mortgage Highlights
Looking for a way to unlock the value of your home in retirement? BOB Reverse Mortgage Loan lets you convert your home equity into a regular income stream. Let’s take a look at the highlights of this option.
| Aspects | Highlights |
|---|---|
| Interest Rates | 11.25% p.a. onwards |
| Loan Amount | Up to ₹1 Crore |
| Tenure | 15 Years |
| Processing Fees | Contact the Bank |
Check Out: Bank of Baroda Interest Rate Calculator
Bank of Baroda Reverse Mortgage Interest Rates 2025
Here’s everything you need to know about the competitive interest rates for BOB Reverse Mortgage Loans in 2025. It’s the perfect option for senior citizens looking for extra financial stability.
| Product | Repo Rate + Spread | Effective Interest Rate |
|---|---|---|
| Baroda Ashray (Reverse Mortgage Loan) | BRLLR + SP + 2.35 % | 11.25 % |
Bank of Baroda Reverse Mortgage Eligibility Criteria
Let’s see if you meet the basic eligibility criteria, so you can get started on your journey to financial freedom in your golden years.
| Eligibility Criterion | Requirement |
|---|---|
| Age | – Individual applicant must be ≥ 60 years. – For joint applications, one spouse must be ≥ 60 years and the other ≥ 55 years. |
| Citizenship & Residency | Applicant(s) must be Indian senior citizen(s) residing in India. |
| Property Ownership | Applicant must own the residential house/flat in his/her own name. |
| Property Use | The residence must be the borrower’s fully self-occupied primary home; commercial properties are ineligible as security. |
The mortgaged residence must remain insured; insurance premiums are paid by the borrower.
Suggested Read: Bank of Baroda Home Loan Interest Rates 2025
Bank of Baroda Reverse Mortgage Terms and Conditions
- Combined principal + interest is capped at ₹1 crore, limited by the property’s market value.
- The bank may revise the monthly annuity after any lump-sum drawdown or every five years following a new property valuation.
- The loan becomes payable when the last surviving borrower dies, sells the home, or moves permanently to an aged-care facility or relatives.
- Repayment is typically met from the sale proceeds of the mortgaged residence, covering the outstanding principal and accrued interest.
- Borrowers or their legal heirs have the first right to clear the dues without selling the property, provided they do so within two months of the loan becoming due.
Suggested Read: Bank of Baroda Home Loan Account Login
Bank of Baroda Reverse Mortgage Fees and Charges
Be aware of any extra charges, such as prepayment penalties or overdue fees, that may apply to your home loan.
| Charge Type | Amount |
|---|---|
| Takeover of Home Loan | – Loans up to ₹20 lakh: 0.35% of the loan amount – Loans above ₹20 lakh: 0.40% of the loan amount – Maximum: ₹15,000 (Service tax applicable separately) |
| Prepayment Charges | Nil for all home loans |
| Inspection Charges | – First Post-Inspection: No charge – Second & Onwards: ₹100 + out-of-pocket and conveyance charges (per inspection) + GST |
| Legal Reports / Valuation Charges | Actual charges as per legal and valuation fees incurred |
| Conversion Charges (Fixed to Floating) | – One-time process – 0.50% per year of the residual loan period (maximum 2% of outstanding loan) + GST – Premature Closure Fee: 0.5% of balance outstanding per year (maximum 3%) |
| Conversion Charges (Floating to Fixed) | Not Available |
Suggested Read: Home Loan Prepayment vs. Retirement Investment
Bank of Baroda Reverse Mortgage Documents Required
Ensure you have all the necessary documents ready, from identity proof to income statements, to make the home loan application process smooth.
General Documents
| Document Category | Details / Notes |
|---|---|
| Application Form & Photos | Duly filled and signed application form + 3 photographs |
| Proof of Identity | PAN Card (mandatory for loan amounts above ₹ 10 lakh) |
| Alternate ID Proofs | Any one: Driver’s Licence / Voter ID / Passport / Aadhaar Card |
| Proof of Residence | Any one: Driver’s Licence, Ration Card, Voter ID, Passport, Aadhaar Card, or Registered Rent Agreement |
| Previous Loan Evidence | Last 1-year loan a/c statement and sanction letter. (If the loan is from BoB, also provide Account No. & Cust ID) |
| Proof of Assets | Documents for LIC, NSC, KVP, Mutual Funds, Property, etc. |
| Assets & Liabilities Statement | Comprehensive current statement |
| ITR Verification Report | Latest Income-Tax-Return verification report |
Must Read: Best Property Valuation Practices
Income Proof for Salaried
| Salaried Individuals – Required Income Documents |
|---|
| Latest 3 salary slips (plus 1 slip for each guarantor, if any) |
| Form 16 + ITR (past 1 year) |
| Employee ID card copy |
| Appointment / promotion / increment letter |
| 6-month salary-account statement(or simply BoB A/c No. if already banking with BoB) |
Must Read: How to Get a Home Loan With Out Income Proof?
Income Proof for Self Employed
| Self-Employed / Professionals – Required Income Documents |
|---|
| Balance Sheet, Profit & Loss A/c, and income computation (last 2 years) |
| ITR + Form 26AS (last 2 years) |
| Business proof – Gumasta licence, registration certificate, GST/Service-Tax, etc. |
| Tax assessment / clearance orders, challans, TDS certificates (Form 16A) |
| Additional if Partnership / Pvt Ltd: |
| • Firm’s PAN & address proof |
| • MoA & AoA |
| • Audited results + ITR (last 2 years) |
| • Current A/c statement (last 1 year) |
Suggested Read: Home Loans Available for Retired Persons
How to Apply for Bank of Baroda Reverse Mortgage?
Ready to apply? Here’s a step-by-step guide to help you navigate the BOB Reverse Mortgage Loan application process. It’s simpler than you think, and we’re here to guide you through it.
- Visit the official Bank of Baroda website.
- Go to the Home Loans section and select “Baroda Reverse Mortgage.” Click “Apply.”
- Fill Out Personal Details
a. Enter your Full Name and Email ID in the provided fields.
b. Select your Preferred Branch, including State, City, and Address. - Upload Documents
Upload scanned copies of your KYC documents, income proofs, and property documents.
- Submit Application
a. Agree to the terms and conditions by ticking the box.
b. Click on ‘Submit’ to finalize your application.
Suggested Read: Bank of Baroda Home Loan Customer Care
Compare Top Banks Reverse Mortgage Interest Rates 2025
Shopping for the best reverse mortgage deal? Compare the interest rates from top banks and NBFCs to find the option that best suits your needs and offers you the best deal in 2025.
| Bank/ NBFCs | Interest Rates |
|---|---|
| Bank of Baroda | 11.25% p.a. onwards |
| Bank of India | 10.85% p.a. onwards |
| Union Bank of India | 11.30% p.a. onwards |
| Indian Bank | 9.40% p.a. onwards |
| Indian Overseas Bank | Fixed Rate of Interest at MCLR +1.00% |
| Punjab National Bank | 12.60% p.a. onwards |
| Axis Bank | 11% p.a. onwards |
Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
A reverse mortgage allows senior citizens to convert the equity in their self-owned home into a regular income stream, without the need to sell the property or make monthly repayments during their lifetime.
Yes, you retain ownership of your home. The reverse mortgage is a lien against the property, not a transfer of ownership.
Absolutely. You can live in your home for as long as you wish, provided you maintain the property, pay property taxes, and keep up with insurance.
Repayment is due when you sell the property, move out permanently, or pass away. Until then, no monthly repayments are required.
No, the income received through a reverse mortgage is not considered taxable income under Section 10(43) of the Income Tax Act, 1961.
Yes, your heirs can inherit the property. However, they will need to repay the loan, which can be done by selling the property or through other means.
Most reverse mortgages come with a “no negative equity” guarantee, meaning you or your heirs won’t owe more than the home’s value.
Yes, reverse mortgages in India are regulated by the National Housing Bank (NHB) under the guidelines issued for reverse mortgage products.
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