National Housing Bank (NHB) is planning to launch REVERSE MORTGAGE PLAN which will be targetted towards providing loan to retired senior citizens who own a property but have no means of income.
Such properties shall be evaluated at current market price and senior citizens may then get loan and exercise option of lumpsum payment or monthly payments. Loan shall be proposed for fifteen years and may be refinanced.
It comes close to becoming a social security mechanism for senior citizens who own a house. After fifteen years, payments shall stop and senior citizens and their spouses can stay in their home but to retain ownership, they shall have to repay the loan amount though without any interest.
Singapore considers monthly payments over reverse mortgage products as loan and not income. RBI's nod is awaited before this scheme actually gets launched.
This sounds like a good
This sounds like a good offer but thing to note here is that you loose ownership of your porperty.
Your property is evaluated and whatever the value as per market rates is given to you either as monthly installments or lumpsum. So, you get money as per its present value but if value increases over months, you are looser and also, you loose your property, unless you repay the amount.
I am still not sure if it shall be successfull here as we Indians don't think like Singaporeans and have diff. culture and setup.