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Corporation bank to offer reverse mortgage loan

Corporation bank to offer reverse mortgage loan

Apnaloan.com Research Bureau

16 Apr 2008

Corporation Bank has launched its reverse mortgage loan scheme named 'Corp Shelter', for senior citizens.

The loan scheme is for those above 60 years of age with self-owned, self-occupied properties. The loan amount ranges between Rs. 1 lakh up to Rs.50 lakh, depending on the value of the appraised property. The loan amount can be disbursed in lump sum or in monthly, quarterly, half yearly or annual installments.

Once the documents have been executed and loan transactions finalised, the borrowers have an option of canceling the loan or recession within 3 days.

This Mangalore-based public sector bank has also announced the waiver of prepayment penalty.

The loan will be considered as payable only when the last surviving borrower dies or would like to sell the property, or permanently moves out to 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.

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