Applicant 3: A retiree:
Can loans be offered to retirees? Yes, under special conditions, there are other home loan options to be considered.
Condition 1: The loan tenure should not exceed the age of 65 for the retiree (70 years for some banks)
Condition 2: The retiree should have a pension income and the loan eligibility is calculated on the basis of pension
Condition 3: A lower FOIR and LTV, and some banks ask for any of their children as guarantors
Mr. Gupta, 60, earns an annual pension of Rs.1,00,000. Let us consider that the bank offers him a loan for 5 years, i.e., till he turns 65. His loan eligibility, therefore, will be Rs.18.39 lakhs.
Illustration: Rs.1,00,000 X 40% /2174
(Here the FOIR is taken 40% only and 2174 is per lakh EMI at 11% for 5 years)