A) It is a kind of loan through which one can get cash flow serially in return for pledging a property to a bank.
B) It is the conveyance of an asset by a borrower to a lender as security for a loan.
C) This scheme originated in the USA.
D) The eligibility criteria set by the RBI states that the person should be above 60 years of age and own a home to avail this mortgage.
Correct Answer: B
Solution :
[b] The policy was implemented in India in 2007 with the objective of providing financial security to the senior citizens who own a house. This functions just opposite to the case of 'mortgage' while borrowing money from bank to buy a house i.e., the beneficiary borrows a lump-sum loan by mortgaging his/her house and the loan is repaid in equal monthly instalments (EMIs). In case the beneficiary dies before clearing the dues, his/her kind may repay the rest amount of the loan and own the house.
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