In India, with about 10% of retired individuals receiving pension from employers, the rest rely on their savings to make ends meet. However, the sustained rise in the cost of living in the country is making it increasingly difficult for retired individuals to survive financially.
That is why options like availing a reverse mortgage loan can help senior citizens to manage their expenses easily.
What is a Reverse Mortgage Loan?
A reverse mortgage loan is a type of loan against property that senior citizens can avail by mortgaging their house to a lender. The financial institution sanctions a percentage of the property’s value as an advance to the borrower, which is then disbursed either periodically or as a lump sum amount.
Availing this advance can help to cover every financial need of retired individuals. Also, since these loans do not have any end-use restriction, a borrower can use the amount to fulfil any of his or her needs.
Benefits Of Availing Reverse Mortgage Scheme:
There are several reverse mortgage benefits for senior citizens, like:
There is low to no risk of default associated with availing this advance. Also, the mortgaged property remains in possession of the owner until his or her death.
There is no need to make monthly payments after availing this advance.
Individuals availing a reverse mortgage in India can continue to live in the property even after the loan tenure expires. The settlement occurs only after the borrower passes away.
Therefore, senior citizens can cover their financial needs easily by availing the reverse mortgage benefits. It is an excellent option that can help them financially, especially against high healthcare costs.
