Public-sector lender Union Bank of India has finally launched its "Union Reverse Mortgage Scheme", a loan product, under which a senior citizen who is owner of a house can avail of a monthly stream of income against mortgage of his/her house.

The loan will be available to homeowners who are 60 years of age or more and can be availed jointly with the spouse, provided he or she is more than 55 years old.

Many lenders such as State Bank of India, Canara Bank, Punjab National Bank, UCO Bank, Bank of Baroda, Allahabad Bank, Indian Bank, Axis Bank and Central Bank of India are already offering the product to senior citizens.

Unlike other loan products, there is no income proof required to be eligible for availing loan. On the demise of the last surviving owner, the legal heirs have the right to repay. If they do not wish to do so, the bank will sell the property, set off the loan outstanding. The surplus, if any, will be given to legal heirs.

The minimum loan amount that can be availed is Rs one lakh and maximum Rs 50 lakh.

According to term & conditions, the 70% of the assessed value of the building will be considered as loan amount.  The maximum period of a loan under this scheme is 15 years.

The loan drawn against mortgaged property will have fixed interest rate of 10% per annum, which will be revised after every five years.

UBI, which is currently implementing an aggressive expansion programme, had recently rolled out a bouquet of products to its customers such as SMS Banking, Online Trading Service besides bringing nearly 2,100 branches under the Core Banking Solution (CBS).