Re­v­erse Mort­gage Loans The EMIs are all yours, if you are a se­nior ci­ti­zen

Consumer Voice - - Bfsi -

For a se­nior ci­ti­zen stay­ing on their own in a house/flat and with­out a reg­u­lar in­come or fi­nan­cial sup­port from fam­ily mem­bers, the re­v­erse mort­gage loan may be a use­ful banking prod­uct. What it does is en­able the in­di­vid­ual to avail of pe­ri­od­i­cal pay­ments from a lender against the mort­gage of their house while re­main­ing the owner and oc­cu­py­ing the house. This takes care of not just house­hold and other daily ex­penses but also ris­ing med­i­cal costs. A num­ber of pub­lic-sec­tor banks in In­dia are sanc­tion­ing such loans. And while it is an ideal op­tion for se­nior cit­i­zens who need reg­u­lar in­come, it is yet to re­ally take off here (un­like in the case of West­ern coun­tries, par­tic­u­larly the United State). The fol­low­ing re­port is an at­tempt to gather the nitty-gritty of this loan-cum-an­nu­ity prod­uct and get a proper low­down on it for those who are look­ing for in­for­ma­tion or may have been wary of it up un­til now.

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