Reverse Mortgage Scheme-Golden Wheel for Senior Citizen

Abstract

Joint Family system in India has reduced drastically. In today's time current generation prefer to stay in nuclear families as a result of it security concern for the senior citizens are rising. With increased longevity of life and a higher standard of living it has become very difficult for the senior citizen to survive. To provide safe and secure living the government of India has launched a reverse mortgage scheme in 2007 to enable senior citizens to avail loan against their house mortgage without resorting to sale. The Scheme is being initially launched by Dewan Housing Finance by the name "Saksham Scheme” and by PNB bank by the name "PNB Baghban”. Initially the scheme was not popular as many couples were not aware of it and there is also an emotional hindrance. But with the increasing insecurity and rising financial needs slowly and gradually the scheme has gained lot of momentum and it is being opted by many senior citizen . By 2050 it is being expected that almost every couple will opt for it to have a better future for the rest of their life by staying in their own houses rather than going to old age homes. Various banks and institutions like SBI,IDBI , Canara Bank, State Bank of Mysore, LIC housing finance and various other have come out with the scheme in the recent years but there is strong need to make senior citizen aware of it and to make the guidelines very clear and transparent so as to have an increased acceptance to the scheme.