Canara Bank has introduced ‘Canara Jeevan’, a reverse mortgage loan scheme for senior citizens. Banks such as State Bank of India, Punjab National Bank and Dewan Housing Finance (HFC) also offer reverse mortgage loans.
In a reverse mortgage loan scheme, Canara Jeevan lends loans against self-occupied residential property to the senior citizens, ie. individuals more than 60 years of age.
Under this scheme, the maximum loan amount available is Rs. 50 lakh; the amount dependent on the market value of the residential property, age of the borrower and prevalent interest rates.
The loan will be disbursed in monthly/quarterly installments for maintenance and other genuine expenses and a portion of the loan amount in lump sum for medical and related expenses.