A reverse mortgage loan can help secure your old age with ease.
Life expectancy in India has increased substantially over the last one decade. Thanks to advancements in medical science along with improved healthcare facilities. However, an increased life expectancy has also led to an increase in geriatric population of the country. According to the Ministry of Social Justice and Empowerment, the number of senior citizens in India (above 60 years) is projected to rise to 14.3 crore in 2021 and 17.3 crore in 2026. Courtesy, a drastically advanced healthcare segment that has ensured senior citizens not only live longer, but are able to maintain a healthy lifestyle, thereby enjoy a more productive life.
However, with changing times, societal norms have also undergone major modifications. Traditional joint families have given way to nuclear ones. Today, its common to see children settled elsewhere while their elderly parents choose to hold on to their roots. Needless to say, loneliness is increasing among senior citizens and many of them often end up facing crisis owing to a lack of proper financial retirement support.
Keeping in mind, this section of the populace, especially those senior citizens who are homeowners but do not have any other source of income, the then government introduced the system of reverse mortgage loans in 2007. Quite popular in western countries, a reverse mortgage loan is a form of credit where the bank or the financial institution pays a fixed instalment against the equity of the home owned. Simply put, in this scenario, the applicant mortgages his or her house to a financial institution or bank and against the same, receives a certain amount of money either as a lump sum or on the basis of instalment.
Sharing his views on the benefits of a reverse mortgage loan, Sanjay Chaturvedi, CEO, Shubham Housing Finance, said, “This is best suited for Senior citizens whose children either live abroad or in different cities and do not intend on living in that house.”
This story is from the September 2019 edition of Outlook Money.
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This story is from the September 2019 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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