I received the following mail from Dr. P. Vyasamoorthy about two days back and awaited the appropriate time to respond.
I would like to draw the attention of all friends in Karmayog that in this Budget of the GoI presented yesterday, the FM has authenticated the Scheme of Reverse Mortgage for the elders above 60 years. TOI Delhi edition of the day on page 5 carries a special column on the subject titled "On the house: Elders can now own and earn". It is quite detailed, and need not be repeated.
Housing banks have already initiated action in this direction. ICICI Bank is working on the scheme. Interested people can contact all the scheduled banks and those involved with the housing loans.
Dear Sri Mathur
Please give me name and contact details of any bank offering Reverse
mortage facilities in India. I am told all such news items are just
on paper? Thanks
Dr P Vyasamoorthy,
Society for Serving Seniors
30, Gruhalakshmi Colony, Secunderabad 500015
[As I understand, any reverse mortgage scheme means that you give away your property at a very low price to the financer. i.e. you get a stream of payments till you die after which the financer takes ownership of the property. It is probably useful most for those who have no one to will the property to esp. no heirs, descendants, etc. What the budget announcement does is to legitimise this activity and bring it in the mainstream so that it is not something that only NBFCs and private financiers can indulge in. So do look before you leap. Vinay]