India: Reverse Mortgage Loan getting good response

Posted by News Feeds

November 7, 2007

India: Reverse Mortgage Loan getting good response,

MUMBAI: Traditionally in India retirement from active service is usually considered to be the end of active life, and sooner or later a retiree becomes entirely dependent on his or her children. A promise in the current year’s budget by Finance Minister P Chidambaram of introducing reverse mortgage products is now fast liberating the senior citizens from that conservative parental mindset, putting him at a par with his European or American counterparts.

Reverse Mortgage Loan (RML) is essentially for the benefit of senior citizens, above the age of 60 years, against the security of their self-acquired, self-occupied houses. The loan is usually paid off by the legal heir of the borrower or is recovered by the sale of the house. According to trends being seen by a few leading banks which have already introduced RML product, they are receiving an overwhelming response from senior citizens.

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