Canara Bank introduces reverse loan scheme for elders
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.
UNI