Does this scheme work any where in India?

Does reverse mortgage work in India?

As per my knowledge it is only available in US

Navinsri,

In India the concept of reverse mortgages is yet to develop on a commercial scale. One private housing company (Dewan Housing Finance Corporation) has started offering reverse mortgage program in the country.

Yes Navin, reverse mortgages are currently being offered in India by Dewan Housing Finance Corporation Limited (DHFL) under the name of Saksham. The program is meant for seniors above the age of 60 years who own property and have been residing in it for at least 1 year.

Under this scheme, the lender pays the borrower a fixed sum of money on a monthly or quarterly basis. The total amount paid is equal to the property value in addition to the interest on the loan.

The lender gets back the amount invested by selling the property after the death of the borrower and his/her spouse.

Hope you have now got some idea

I know about DHFL, they are the second largest private housing finance company in India. The mortgage is generally approved based on -

#The method of payment th borrower selects.
#Average value of the property.
#Interest rate on the mortgage.
#Borrower's age.