Reverse Mortgage India

Old age comes along with heap of troubles. Need of old people on other people increases as they grow older and their revenue dries up. The relatives or guardians of old people has to pay the fitness care operating cost. Breathing the golden years with self-respect and honour, with health care expenses on rise, can be considered as a confront for old peoples as they produce older, and their regular source of income dries up, their addiction on others can increase considerably.

Senior citizens believe that their value of the suburban property has the major share in the total asset. A proposal to introduce Reverse Mortgage in India was put forth in union budget 2007-08 by finance minister P.Chidambaram.The borrower pledges his property to the lender, as a collateral, for the loan amount received. The loan amount for Indian reverse mortgage is charged at a higher interest rate for specific tenure. The borrower need to repay the loan in the form of EMIs, involving both principal and interest amounts for reverse mortgage. The residential property of borrower is utilized as security, which can cover the risk if the borrower makes default payments on reverse mortgage