A reverse mortgage scheme is a unique loan targeted towards citizens above the age of 60. It requires no monthly mortgage payments, instead, it gives you a lump sum payment or monthly payments to live out your retirement against the value of the pledged property. To take possession of the property, the heirs have to make payments after the borrower’s demise. Mortgage Loan means a loan which is taken against the existing property by creating a charge on the property. Mortgage is popularly known as Loan against Property also. Technically, in both the cases we can say that there is a mortgage charge created on the house which has been put as a security. When you take a reverse mortgage loan in India you can fund your daily needs and secure stable income for around 10 to 20 years. You can get up to Rs.50,000 as fixed income for the tenor. With these funds, you can buy a health plan, take fix and refurbish your home, and do much more. Advantages of Reverse Mortgage Scheme 1. Finance your Retirement with a reverse EMI amount A reverse mortgage loan in India can give you up to Rs.1 crore over the years or 60% of the value of your property. The amount is broken down into installments to help you meet your expenses. 2. Secure your future with the increased tenor With a loan tenor of up to 20 years, you gain a source of income that contributes to your expenditure. This means you can have funds to run your home, pay your bills, and tackle an emergency situation. 3. Avail a lump sum emergency amount, if needed Some lenders allow you to take an emergency fund up to Rs.15 lakh to address a medical situation that may crop up unexpectedly. The amount can be utilized either for you or your spouse. 4. Pay back the sum or choose to sell your property Upon demise, your heir will have the chance to settle the loan along with the interest without needing to sell the property. The loan dues must be cleared within 6 months after the death of the last surviving spouse. With a reverse mortgage scheme, you can use your home to live out the rest of your days comfortably without being financially dependent on your children.
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AuthorAlisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health. She has in depth knowledge and has written more than 1200 blogs on topics related home and car insurance. She also provide you with knowledge about home improvement and cooking. Categories
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