Reverse mortgage loan is very popular in the western countries but in India, hardly anyone knows about it. I am very happy that The National Housing Bank (NHB) is now seriously considering the idea of introducing reverse mortgage loan for old people. Often in India, an old person has just a home and nothing else- no pension and no support from children. Reverse mortgage loan will be a great blessing for them. To give you an idea about the way this system is going to work for Indians, I am quoting from a report of Times of India:
“Under this new scheme, a senior citizen, who owns a house, can be given a loan up to 45% of the market value of his house, if he is in the age group of 62-70 years. If the borrower's age is between 71-75, he can avail loan up to 50% of the market value.
Similarly, for people belonging to the age group of 76-80, a senior official of NHB said, loans up to 55% of the market value of houses will be given. For the age group of over 80 years, loans up to 80% of houses will be offered.
Borrowers can opt for receiving the money as fixed monthly payment also. In this case, the entire amount will be paid in the form of annuity (a sort of monthly income) for 15 years, which will be fixed, irrespective of the age at which borrowers take the loan.”
Sounds decent enough to me. I just wish that Indian government approves this scheme very soon. This will help millions of old people. Indian government should also take care that this scheme does not get corrupted by greedy people.
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require information on the above matter regarding the rate of intrest, bank, Remortgage,& Tenure.
Posted by: A.MOHAMED ABDUL GANI | April 26, 2007 3:13 AM | Permalink to Comment