Reverse mortgage loan -A financial tool for the people in their twilight years

A large part of the savings of senior citizens is tied up in non-liquid assets such as homes and property. Senior citizens usually do not have a regular income and if they exhaust their savings, then it gets difficult to meet living expenses without having to sell their house. A reverse mortgage allows a senior citizen who owns a house to avail of a monthly stream of income against mortgage of the house. The senior citizen remains the owner and occupies the house throughout his or her lifetime, without repayment or servicing of the loan. This system allows senior citizens to convert their homes into cash without having to sell their property. After a thorough understanding of the concept reverse mortgage loan, the next important objective of the present study is to know whether the senior citizens would accept the product, viz., reverse mortgage loan and also to study to what extent the reverse mortgage loan would capture the Indian market.