India: House that!

India: House that!,

Sometimes, the Kumars (name changed) wish they were younger and fitter. Wistfully, these 60-somethings, living in a middle-class Delhi suburb, recount their tale. He retired from government service seven years ago and got a pension. But it proved to be insufficient when medical problems beset both, and surgeries and medicines started eating into their savings. When their two children refused help, it looked grim. But then, one day, he read about a new product called ‘reverse mortgage’, and it looked like a doorway to a better financial life.

The Kumars had a house. They couldn’t rent it out, but they learnt they could turn it into an income stream in their lifetime, while continuing to live in it. They got in touch with Punjab National Bank (PNB), one of the two players with a reverse mortgage product. PNB assessed the value of their property at Rs 1.1 crore. It sanctioned a loan on 80 per cent of this (Rs 91 lakh), and structured this loan into monthly payments (like an EMI that you receive).

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Full post here Reverse Mortgage Loan Blog

Written by News & Feeds on October 7th, 2007 with comments disabled.
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