A reverse mortgage loan is a type of advance designed specifically for retired individuals. With this advance, borrowers can avail a percentage of the value of their mortgaged property as a loan, which is disbursed periodically or as a lump sum amount.
Individuals can avail this reverse mortgage loan to fulfil any of their financial obligations. These come with no end-user restrictions, enabling senior citizens to cover needs like medical emergencies, regular expenses, etc.
Who Can Avail A Reverse Mortgage Scheme?
To avail of this scheme in India, individuals need to comply with some simple eligibility criteria. These are:
Borrowers must be 60 years of age.
They should have permanent ownership of the property they mortgage for at least 20 years.
There should be no litigation issues or liability concerning the property.
What Are The Benefits Of Choosing This Scheme?
Senior citizens availing this scheme can enjoy the following reverse mortgage benefits:
There is no need to make monthly mortgage payments. You can spend the funds you receive according to your needs.
Financial institutions offer instant approval and easy disbursal facilities making the funds available instantly.
Individuals availing an Reverse Mortgage Loan can continue to live in their mortgaged property even after the loan tenor expires. Settlements occur only after the last surviving borrower passes away.
When both spouses are co-applicants for the loan, one spouse will continue receiving disbursal even after the other’s demise.
To avail the reverse mortgage benefits in India, individuals can visit their financial institution’s website and apply. The application process is simple and can be completed easily by supplying the necessary documents.