What is Reverse Mortgage Loan


Reverse Mortgage Loan have been designed exclusively for senior citizens i.e. Persons of 60 years and above. Due to in cost of health care and medical facilities, coupled with lack or little social security, senior citizens require a regular and steady cash flow stream for supplementing and supplanting their inflow of through pension and other means to meet their financial needs.

Reverse Mortgage Loan have been designed exclusively for senior citizens i.e. Persons of 60 years and above. Due to increase in cost of health care and medical facilities, coupled with lack or little social security, senior citizens require a regular and steady cash flow stream for supplementing and supplanting their inflow of income through pension and other means to meet their financial needs.

In terms of RBI's directives almost all major banks have devised the Reverse Mortgage Loan which seeks to finance them against the senior citizens interest in the house. In other words, the senior citizen as a borrower mortgages his property to the Bank, and he is entitled to get periodic payments during his life time for sustaining themselves. The scheme involves door step service, simple documentation, and attractive interest rates. The maximum tenor of loan is 20 years and there is no prepayment charges or levy in case of foreclosure of the IDBI Bank loan


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