« Pensioners Loan

Canara Bank- Can Pension

Purpose of Can Pension:
The main intention of Can Pension loan is to meet the cost of medical expenses and other genuine needs. 

Eligibility:
Borrower of Can Pension must be a Pensioners of Central Government, State Governments, Public Sector Undertakings, Corporate Pensioners, Pensioners of Banks etc.

Quantum of Loan:
Ten month's pension amount or Rs.1,00,000/- whichever is lower, can be considered as the quantum of Can Pension.

Rate of Interest:
12 % per annum (fixed), with reset every three years.

Repayment of Loan:
Maximum of 36 months in EMIs with effect from one month after first disbursement.

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Canara Bank- Canara Jeevan

Objectives:

Apart from Can pension loan, Canara Bank has introduced a  new loan scheme named as Canara Jeevan- Reverse Mortgage Loan Scheme For Senior Citizens. The main objective of Canara Jeevan Reverse Mortgage loan scheme is to aid senior citizen to convert their dwelling house property into liquid cash flows to meet their living expenses. 

Purpose of Loan:

• For supplementing pension and other incomes.
• In order to meet the emergency expenditure of family, Medical and any other genuine needs.
• Repayment of any existing mortgaged loan taken for the residential property by the borrower.
• For the purpose of up gradation, renovation, insurance and extension of residential property.

Eligibility of Canara Jeevan:

• Owners of residential house or flat, who are resident of India, above 60 years of age.
• Residential property must be permanent and also acquired by himself.
• Acquired property must be 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 this case, the joint owner who is aged above 60 years shall be the first borrower.
• Commercial property not eligible under the scheme.

Determination of Eligible Amount of Loan:

• Depends up on the age of the borrower and the assessed value of the property.
• Incase of independent house minimum loan amount is Rs.5,00,000 lakhs and maximum of Rs.50,00,000 lakhs. 
• Incase of flats minimum loan amount is Rs.5,00,000 lakhs and maximum of Rs.25,00,000 lakhs.

Nature of Payment:

 Nature of payment to be decided in advance as part of the RML covenants, as under:

• Periodic payments (monthly/quarterly).

• 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.

Rate of Interest:
10.5 % p.a (fixed) with reset every three years.

Repayment of Loan:
The actual tenure of loan is 15 years but it will become due and shall be payable only when the last surviving borrower dies or would like to sell the house, or permanently moves out of the house whichever is earlier.

Processing Charges:

As a processing fee 25 % of the loan amount with a maximum of Rs.5000/- might be applicable.

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