REVERSE MORTGAGE LOAN (RML) SCHEME FOR SENIOR CITIZENS
In the present scenario, for most senior citizens and those nearing retirement the biggest fear is the need for money to live comfortably after retirement. Reverse mortgage loan scheme helps them to convert their dwelling house property into liquid cash flows to meet their living expenses.
With this objective of meeting the financial needs of the Senior Citizens, a new loan scheme is introduced, namely “CANARA JEEVAN” - Reverse Mortgage Loan Scheme For Senior Citizens.
To meet the financial needs of Senior Citizens owning self occupied residential property.
Purpose of the loan
For supplementing pension/other income
Maintenance of family, Medical, emergency expenditure
Repayment of an existing loan taken for the residential property to be mortgaged
Up gradation, renovation and extension of residential property
For uses associated with home improvement, maintenance/insurance of residential property.
Meeting any other genuine need
Owners of residential house/flat, who are residents of India, above 60 years of age,
Property self acquired and self occupied as permanent primary residence and property free from encumbrance
Residual life of property should be at least 20 year
Incase of flats the age of the flat should not be more than 10 year.
Couples will be eligible as joint borrowers and in such cases, at least one of them should be above 60 years of age and the spouse/joint borrower should be more than 55 years of age.
In case of jointly owned properties the joint owner who is aged above 60 years shall be the first borrower.
Commercial property not eligible under the scheme.
No loans against ancestral property.
Determination of Eligible Amount of Loan
Depending upon the age of the borrower and the assessed value of the property. flats/house.
Incase of independent house Minimum loan quantum Rs.5.00 lacs and maximum Rs.50.00 lacs. (*)
Incase of flats Minimum loan quantum Rs.5.00 lacs and maximum Rs.25.00 lacs. (*)
(*) Loan amount including interest till maturity.
Nature of Payment
Nature of payment to be decided in advance as part of the RML covenants, as under:
Periodic payments (monthly/quarterly)
Option once exercised for monthly or quarterly payments shall remain unchanged throughout the tenor of the loan and interchangeability cannot be permitted.
One time Lump-sum payment, not more than 20 % of the eligible loan amount.
In case of periodic disbursement, the payments shall be made during the loan period of 15 years or till the death of the last surviving spouse, whichever is earlier.