The elderly population in India jumped from 77 million in 2001 to 104 million in 2011. It is expected to increase by at least 3 times within 2050, and account for 20% of the country’s population. This demographic caught the eyes of the financial policymakers. Subsequently, a reverse mortgage concept was brought in to ensure the financial stability of pensioners.
The absence of a stable source of income often creates a hurdle in front of senior citizens, especially when they face emergencies. In an attempt to ensure their financial independence in times of need, reverse mortgage has been introduced by various financial institutions across the nation. It also enables a borrower to meet his/her financial requirements without draining their savings.
However, the benefits of this loan are not restricted to this and comprise of –
# Flexibility in Usage – The loan availed under the reverse mortgage scheme comes with the added benefit of no end-usage restrictions. Thus, this fund can be utilised to fund diverse costs including –
- Medical expenses.
- Day-to-day expenditures.
Such financing options bring the borrower with the added benefit of financial independence.
# Improvement in Immediate Finances – With the scope of periodic payouts, the pensioners need not worry about the absence of a stable source of income. The funding received builds up substantially on the disposability and accessibility of instant finances.
# Nominal Eligibility Requirements – Reputed lenders of a reverse mortgage loan keep the eligibility criteria to a minimum to help prospective borrowers fulfil the necessary requirements –
- Minimum age of 60 years.
- Mortgage property should be the applicant’s permanent residence for at least 20 years.
- The to-be mortgaged property should not be carrying any litigation or liability issues.
# No Need for Monthly Payments – Unlike other forms of advances, in the case of reverse mortgage India, borrowers need not repay the loan amount every month. They instead have the option to settle their loan after closing it and draw monthly quarterly, half-yearly or annual payouts. This funding ensures that they meet their financial requirements conveniently.
Additionally, such loans are beneficial for senior citizens considering that the borrower in question retains the ownership of the property. Even if the loan tenure expires, it is only after a borrower passes away that a settlement happens. Moreover, in case there is a co-applicant to this loan, the loan amount disbursal is continued to them if their spouse expires.
Under such circumstances, individuals can opt for a loan against property from reputed financial lenders. These advances ensure that you avail an advance against your mortgage but keep your ownership intact.
Additionally, these loans also come with numerous lucrative borrower-friendly features that include –
- High-value loan amount of up to Rs. 3.5 Crore
- Nominal charges on your loan against property
- Flexible tenor ranging from 2 to 20 years
- Easy balance transfer facility
- Convenient online account management facility
- Minimum eligibility criteria required to avail a loan
- Quick loan disbursal of sanctioned sum
- Swift approval of loan amount
- A minimum eligibility criteria and list of documents needed to apply for a loan against property
Such loans from reputed NBFCs bring with it pre-approved offers on numerous financial product that includes home loans, personal loans, business loans, etc. These offers ease the application process to avail financial assistance. You can take a look at your pre-approved offer by sharing only some essential details online.
Therefore, it is ideal that you decide upon your financial priorities and requirements and then settle upon a loan that is tailor-made for your needs. In case you are a senior citizen with possession of a property that is well-maintained, then reverse mortgage is the best option for you. With a low to no risk probability and an assured source of income via periodic payout, they are the ideal financing option for pensioners.