Canara Bank enters reverse mortgage

Canara Bank has introduced a new retail lending product, 'Canara Jeevan', a reverse mortgage loan scheme for senior citizens.

Canara Jeevan allows owners of residential properties to convert their home ownership into cash flows, for meeting their living and other expenses.

Unlike mortgage, which is generally used to secure finances, reverse mortgage converts a self-owned property into finance.

According to a press release, the loan will be granted to owners of self-acquired residential properties, who are aged over 60 years, against mortgage of the property. The maximum loan quantum is Rs 50 lakh. The quantum of loan will depend on the market value of the residential property, age of the borrower and prevalent interest rates.

The disbursement will be made by the bank in monthly/quarterly instalments for maintenance and other genuine expenses and a portion of the loan amount in lumpsum for medical and related expenses, the release added.