Reverse Mortgage: A Vision to Bring Smile to the Elderly

Abstract

This paper seeks to explore and contribute to the scientific understanding of the concept of reverse mortgage in india. In the current scenario, our country is facing a demographic shift. There is a substancial increase in number of our elderly population who have a single large asset as their place of residence and are eventually retired from the full time workforce. Also, there is an increased expectations on the quality of life among our elderly but they are facing budgetary constraints. The pertinent problem they face is that they are asset rich but cash poor. This provides a massive incentive to develop the financial products which are tailored to the elderly. Since there is an extensive increase in the living expenses like medical, electricity,transportation etc and the bulk of savings being locked up in the home equity, reverse mortgage is a potent device which provides a solution to their problem. Through this paper we would like to examine the scope and the significance of reverse mortgage in india.