• Contact Us
  • Privacy Policy
  • Disclaimer
Monday, December 11, 2023
News Nit
No Result
View All Result
  • Login
  • Contact Us
  • News
    Angus Young Net Worth 2022-Australia News

    Angus Young Net Worth 2022-Australia News

    5 States with the Most Car Accidents

    5 States with the Most Car Accidents

    kiruthiha kulendiren

    Who Is Kiruthiha Kulendiren: Mother of Maitreyi Ramakrishnan

    Facts About Michael Jordan

    17 Fascinating Facts About Michael Jordan

    lina sardar khil parents

    Lina Sardar Khil Parents Reaction To Her Missing

    bharat benz tipper price

    Bharat Benz Tipper Price in India

    Trending Tags

    • Commentary
    • Featured
    • Event
    • Editorial
    • Politics
    • National
    • World
  • Business
  • Opinion
  • Tech
  • Science
  • Lifestyle
    • Travel
  • Entertainment
  • Health
  • Contact Us
  • News
    Angus Young Net Worth 2022-Australia News

    Angus Young Net Worth 2022-Australia News

    5 States with the Most Car Accidents

    5 States with the Most Car Accidents

    kiruthiha kulendiren

    Who Is Kiruthiha Kulendiren: Mother of Maitreyi Ramakrishnan

    Facts About Michael Jordan

    17 Fascinating Facts About Michael Jordan

    lina sardar khil parents

    Lina Sardar Khil Parents Reaction To Her Missing

    bharat benz tipper price

    Bharat Benz Tipper Price in India

    Trending Tags

    • Commentary
    • Featured
    • Event
    • Editorial
    • Politics
    • National
    • World
  • Business
  • Opinion
  • Tech
  • Science
  • Lifestyle
    • Travel
  • Entertainment
  • Health
No Result
View All Result
Morning News
No Result
View All Result
Home Business Finance

How Can Senior Citizens Benefit from a Reverse Mortgage During Coronavirus?

akash gupta by akash gupta
11 July 2020
in Finance, Uncategorised
0
0
SHARES
60
VIEWS
Share on FacebookShare on Twitter

The Government of India has taken several remarkable initiatives towards the betterment of citizens and their socio-economic standing. Massive advancements in healthcare and treatment have increased the average life expectancy tremendously. A study published shows that the average life expectancy of Indian citizens is currently 69.27 years.

However, a higher life expectancy brought several unique issues upfront. The financial condition of retirees was most concerning; despite having several programs in place, the rising cost of healthcare threatened to drain the life’s savings of individuals, especially during unprecedented economic contraction like in the present. Fortunately, financial schemes like reverse mortgage loans are likely to back India’s asset-rich elderly population.

READ ALSO

Learn These Preparation Tips Before You Ship a Car to Another State

5 Best Casino Games Everyone Can Play without Skills

Reverse mortgage schemes were introduced in India in 2007, as a means to provide an alternate source of income to pensioners. It allows an individual to mortgage their residential property and avail a portion of the house’s equity as cash.

Reverse mortgage loan (RML) can thus be one of the preferred modes of financing for many senior citizens across the nation, especially during the current scenario. These financial products are considered as a convenient and affordable option because of their minimum rates, which are similar to the charges of a loan against property or other forms of mortgage loans.

How can reverse mortgaging an asset prove beneficial?

Several reasons explain why reverse mortgage schemes can be the pensioners’ and senior citizens’ preference across India. Here’s how they can benefit from such policies –

  • They can gain access to a substantial amount –

Reputed financial institutions can offer as much as 90% of a mortgaged property’s value under these schemes. It can provide an immense financial boost to pensioners, which can prove helpful during current times.

A significant number of India’s population owns residential properties. The equity which is collected over a lifetime can be utilised to earn a much-needed annuity post-retirement.

Moreover, the funds offered with a reverse mortgage loan come without any end-use restrictions. Borrowers can utilise the amount for any suitable purpose, whether to maintain their lifestyle or to pay for unforeseen expenses like medical emergencies.

  • Borrowers hold the right to stay in the property –

According to the guidelines introduced by the Reserve Bank of India, borrowers availing a reverse mortgage loan in India hold the right to stay and use the property even after the end of loan terms. Financial institutions can only sell the property (for the disbursed amount’s recovery) after the borrower and his or her spouse pass away. Borrowers can also avail an RML as a joint loan, in which case the minimum age criteria is relaxed to some extent.

It is also classified as a non-recourse advance, meaning borrowers are not obligated to repay the disbursed amount. The Reserve Bank of India also enforced provisions for the next of kin to claim the property by repaying the outstanding amount.

Together, these provisions eliminate any risk of untimely property auction, allowing pensioners to reside in their homes without worrying about repayment.

  • Borrowers are eligible for tax exemption –

Borrowers availing a reverse mortgage loan are eligible for tax exemptions under Section 10(43) of Income Tax Act of 1961. As the funds collected through this mortgage scheme are considered as welfare instead of an ordinary loan, borrowers are exempted from the taxes as applicable to similar policies. The exemptions remain the same whether someone opts for monthly, quarterly, half-yearly, annual, or lump sum pay-out.

However, this mortgage plan is available only for pensioners. Prospective borrowers with a regular income can opt for secured advances like a loan against property. These loans offer a substantial sum with an extended repayment tenor and attractive loan against property interest rate, which helps keep the overall cost to a minimum.

Borrowers can also enjoy several other benefits, like quick disbursal, balance transfer facility, online account management, and tax benefits on a loan against property.

Reverse mortgage benefits and provides much needed financial relief to senior citizens of India, providing the necessary monetary backing to provide for essentials during present times. Individuals who need additional financial boost can consider financial products like loan against property, as these can help bridge any financial shortcoming one might face along with being affordable.

Related Posts

Learn These Preparation Tips Before You Ship a Car to Another State
Tips

Learn These Preparation Tips Before You Ship a Car to Another State

14 November 2023
Play without Skills
Uncategorised

5 Best Casino Games Everyone Can Play without Skills

11 January 2023
Management Styles Essays
Uncategorised

Management Styles Essays

12 December 2022
Break From Travelling And Stay In Thailand Long-Term
Tips

Want A Break From Travelling And Stay In Thailand Long-Term? Here’s How You Can

8 December 2022
Jake Leicht Relays Tips On Getting Into Flipping Houses
Real Estate

Jake Leicht Relays Tips On Getting Into Flipping Houses

27 November 2022
Are Delta 9 THC Gummies more potent than Delta 8?
cannabis

Are Delta 9 THC Gummies more potent than Delta 8?

24 November 2022
Next Post

Eclipse Keto Avis – Keto Diet en Pharmacie, Prix [Officiel]

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Mastering the Game: Tips and Strategies for Playing Chin Shi Huang Slots

Mastering the Game: Tips and Strategies for Playing Chin Shi Huang Slots

8 December 2023
9 Ways to Naturally Enhance Your Sexual Experience

9 Ways to Naturally Enhance Your Sexual Experience

6 December 2023
Can Dogs Eat Green Peppers

Can Dogs Eat Green Peppers

5 December 2023
Tech-Infused Thrills: Exploring the Impact of Technology on Slot Excitement

Tech-Infused Thrills: Exploring the Impact of Technology on Slot Excitement

5 December 2023
1044 Angel Number

1044 Angel Number: Start A New Beginning

4 December 2023
Angel Number 818

Angel Number 818 – Unlocking the Power Within

30 November 2023

lcarscom.net


newsnit.com is an open platform for people who loves to read and write. You can gather information or share your views in your words here. We will always be happy to provide the most recent facts, technological news etc. Happy reading!

Misc

Mastering the Game: Tips and Strategies for Playing Chin Shi Huang Slots

8 December 2023
Mastering the Game: Tips and Strategies for Playing Chin Shi Huang Slots

Playing Chin Shi Huang slots is a straightforward betting activity where you need to spin the reels to hit the...

Read more
by sweety
0 Comments
Misc

Mastering the Game: Tips and Strategies for Playing Chin Shi Huang Slots

8 December 2023
Misc

9 Ways to Naturally Enhance Your Sexual Experience

6 December 2023
animal

Can Dogs Eat Green Peppers

5 December 2023
  • Contact Us
  • Privacy Policy
  • Disclaimer

Copyright © 2023 All Rights Reserved | Powered by Newsnit
[email protected]

No Result
View All Result
  • Contact Us
  • News
    • Politics
    • National
    • World
  • Business
  • Opinion
  • Tech
  • Science
  • Lifestyle
    • Travel
  • Entertainment
  • Health

Copyright © 2023 All Rights Reserved | Powered by Newsnit
[email protected]

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In