Wednesday, April 16, 2008

Corporation Bank Rolls Out Reverse Mortgage Scheme

Corporation Bank unveiled "Corp Shelter", the reverse mortgage loan scheme for senior citizens. Under the scheme, a borrower over 60 years of age can borrow a minimum amount of Rs 1 lakh up to Rs 50 lakh depending on the value of the appraised property.

The borrower should be the owner of a residential property (house or flat) located in India, with a clear title indicating the prospective borrower''s ownership of the property. The residential property shall be free of any encumbrances. The prospective borrowers should use that residential property as permanent primary residence. The loan shall become due and payable only when the last surviving borrower dies or would like to sell the home, or permanently moves out of the home for aged care to an institution or to relatives. The Mortgaged property will also be insured for full value against all risks under Reinstate Value Method.

No comments: