Why mot retirees don't find refuge in reverse mortgage
BANKING FINANCE|February 2024
It would be the deal of the century, or so Andre-Francois Raffray could have thought. The Frenchman had in December 1965 stuck a deal with 90-year-old Jeanne Calment to pay her 2,500 francs every month until she died.
Why mot retirees don't find refuge in reverse mortgage

After that, he would get her house. Little did he know that Calment would go on to live for another 32 years and become, arguably, the oldest person to have ever lived. She died on 4 August 1997 aged 122. Raffray died before her but ended up paying more than double the value of the house.

This famous anecdote spotlights the importance of reverse mortgage for pensioners. A reverse mortgage is a special type of loan that allows senior citizens to mortgage their homes without having to make any loan repayments and thus helps them tide over financial difficulties.

In India, a senior citizen can ink a similar deal with banks, albeit with some tweaks. Considering that bank fixed deposit rates are going down and healthcare expenses rising, financial experts see reverse mortgage a good option for retirees. The homeowners get a fixed monthly payment for letting the banks auction off their property after their deaths to recover the loan dues. Any remaining amount is passed on to their legal heirs.

How reverse mortgage works

A senior citizen above the age of 60 and with a residential property in their name can apply for a reverse mortgage loan. In the case of couples, the spouse should be at least 55 years old.

Once the person decides to take the loan, the applicant would have to submit a list of documents, including proof of the person's identity and the title deed of the house. The applicant needs to make sure that there is no property dispute and that it is not agricultural land or commercial property.

この蚘事は BANKING FINANCE の February 2024 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は BANKING FINANCE の February 2024 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

BANKING FINANCEのその他の蚘事すべお衚瀺
ICICI Bank partners with PhonePe to offer instant credit on UPI
BANKING FINANCE

ICICI Bank partners with PhonePe to offer instant credit on UPI

ICICI Bank announced that it has partnered with PhonePe to offer instant credit on UPI to its pre-approved customers on the app of the digital payments company.

time-read
1 min  |
November 2024
Indiagold Eyes Major Expansion in India's Gold Loan Market
BANKING FINANCE

Indiagold Eyes Major Expansion in India's Gold Loan Market

Indiagold, a prominent fintech company specialising in gold loans, is set to disrupt the gold loan industry with its ambitious expansion plans and innovative product offerings.

time-read
1 min  |
November 2024
RBI CIRCULAR
BANKING FINANCE

RBI CIRCULAR

Facilitating accessibility to digital payment systems for Persons with Disabilities Guidelines

time-read
4 分  |
November 2024
Legal News
BANKING FINANCE

Legal News

The Supreme Court announced the launch of a new webpage on its official website providing summaries of landmark judgments.

time-read
5 分  |
November 2024
The Role and Impact of the Insolvency and Bankruptcy Code (IBC) in NPA Recovery
BANKING FINANCE

The Role and Impact of the Insolvency and Bankruptcy Code (IBC) in NPA Recovery

Indian banks, especially grappling with the mounting challenge of Non-Performing Assets (NPAs) within Scheduled Commercial Banks (SCBs), are experiencing a significant downturn in their capacity for credit recycling, resulting in reduced business opportunities and declining profits. However, various factors contributing to the severity of NPA problem are including macro-economic, political, and internal factors, emphasizing the complexity of the issue. With this background, the present study puts an effort to look at the role of the Insolvency and Bankruptcy Code (IBC) in NPA recovery and also showcasing its significance in resolving insolvency and maximizing creditor recovery.

time-read
8 分  |
November 2024
Big Data in Banking: Analysing its Role, Advantages and Challenges
BANKING FINANCE

Big Data in Banking: Analysing its Role, Advantages and Challenges

Globally Inflation started rising post April 2021 and went above the target range set by most of the Central Banks. It had remained low and dormant for a substantial duration since the global financial crisis. CPI inflation in developed countries such as US, UK and Euro zone, began to exceed their traditional target of 2% and continue to stay at these elevated levels till recent time.

time-read
5 分  |
November 2024
Is SIP Always the Best Option? A Look into Lump-Sum vs SIP During Volatile Markets
BANKING FINANCE

Is SIP Always the Best Option? A Look into Lump-Sum vs SIP During Volatile Markets

SIP is a method of investing a fixed amount at regular intervals, typically monthly, into a mutual fund. It allows investors to buy more units when prices are low and fewer when prices are high, a process known as rupee cost averaging.

time-read
6 分  |
November 2024
Strategies for Mutual Fund Retail Investors during market downturns
BANKING FINANCE

Strategies for Mutual Fund Retail Investors during market downturns

When stock markets experience a decline, mutual fund investors often face a sense of insecurity and apprehension. The volatility can lead to impulsive decisions, which, rather than securing financial health, may impair long-term investment objectives.

time-read
5 分  |
November 2024
The Rise of Green Marketing: Driving Sustainable Change
BANKING FINANCE

The Rise of Green Marketing: Driving Sustainable Change

Green marketing refers to the practice of promoting products or services that are environmentally friendly or sustainable. It involves incorporating eco-friendly elements into various aspects of marketing strategies, including product development, packaging, advertising, and distribution.

time-read
8 分  |
November 2024
Fraud Risk Management In Banking
BANKING FINANCE

Fraud Risk Management In Banking

Fraud risk management is a fundamental aspect of overall Risk Management within the banking sector. In India, banks adhere strictly to guidelines set forth by the Reserve Bank of India (RBI) to prevent, detect, and promptly report fraudulent activities.

time-read
6 分  |
October 2024