If you are a senior citizen above 60 years and worried about your savings getting exhausted, your home can be a source of your livelihood. If you are above 60 years of age and own a house, you can avail a loan against it (You are still the owner of the house), with a bank or a housing finance Company. The bank gives you money in installments each month or as a single lump sum which you can live on. After your and spouses death the heirs (Children or family), can take possession of the property after clearing the pending dues on the house. ( Borrowings + interest).
Why reverse mortgage is not popular in India?
Culture and tradition:
In India the tradition is to hand over property from one generation to another. Handing over property is considered to be family honor and pride. No parent would want to pass on a debt (loan) as a legacy to his children.
Families truly care:
In India children look after their parents. Children send money to parents when they are in need. No child would want to leave his parents so helpless, that they would need to avail reverse mortgage.(Mortgage the family home).
Lack of understanding:
Reverse mortgage is not properly understood in India. It is regarded as a complex product by senior citizens in India. This makes it highly unpopular among them. Many senior citizens are not even aware that such a product is in existence because it is poorly marketed.
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