Bangalore, Feb 2: Public sector bank- Canara Bank has introduced a new retail lending product namely 'CANARA JEEVAN' - Reverse Mortgage Loan scheme for Senior Citizens. Canara Jeevan is a loan that allows owners of residential properties to convert their home ownership into cash flows, to meet their living and other expenses, a press release said here today.
Unlike mortgage, which is generally used to secure finances, Reverse Mortgage converts a self-owned property into finance. The loan would be granted to owners of self acquired residential properties, aged more than 60 years, against mortgage of the property. The maximum loan quantum is Rs 50 lacs. The quantum of loan would depend on the market value of the residential property, age of the borrower and prevalent interest rates, the press releaase said.
The disbursement would be made by the bank in monthly and quarterly instalments for maintenance and other genuine expenses and a portion of the loan amount in lumpsum for medical and related expenses.