25 November 2024 • Property bhaskar
Reverse Mortgage - How Your Home Can Secure Your Old Age.


As India’s elderly population continues to grow, financial challenges in old age are becoming a pressing concern. With over 15 crore seniors struggling with limited resources, the concept of a reverse mortgage loan offers a promising solution. This unique scheme enables senior citizens to convert their home into a steady source of income, providing much-needed financial independence.

What is a Reverse Mortgage Loan?

A reverse mortgage loan allows homeowners aged 60+ to mortgage their property with a bank and receive monthly payouts in return. Unlike traditional loans where borrowers make payments to the bank, here the bank pays the homeowner, offering them a reliable income stream during retirement.

Key Features of a Reverse Mortgage Loan

  1. No Repayment Required During Lifetime

    • Seniors can continue living in their home without repaying the loan. The house only transfers to the bank after the borrower’s death.

  2. Monthly Payouts for Living Expenses

    • The bank provides a fixed amount each month, calculated based on the property’s value.

  3. Loan Amount Up to 60% of Property Value

    • Homeowners can access up to 60% of their property’s worth, offering flexibility while retaining ownership during their lifetime.

  4. Low Processing Fees

    • Fees range between ₹2,000 and ₹20,000 depending on the loan size, along with minimal stamp duty and registration costs.

  5. Tenure of 15–20 Years

    • Most banks offer reverse mortgage loans with a tenure of up to 20 years, subject to the borrower’s age.

  6. Prepayment Options Without Penalties

    • Seniors can repay the loan early without incurring any additional charges.

Why Reverse Mortgage is a Game-Changer

  • Financial Independence: Provides seniors with a steady income stream to manage medical bills, daily expenses, and unforeseen costs.
  • No Displacement: Borrowers can continue living in their homes without moving to a rental property.
  • Inheritance Flexibility: After the borrower’s demise, the family can repurchase the home by repaying the loan amount to the bank.

How to Get a Reverse Mortgage Loan?

  1. Eligibility Criteria:
    • Applicant must be 60+ years old. Some banks cap the age limit at 72 years.
  2. Documents Needed:
    • Property ownership papers, proof of age, identity documents, and bank statements.
  3. Processing Time:
    • Banks charge a nominal processing fee of 0.5% of the loan amount to initiate the process.

Who Should Consider Reverse Mortgage?

  • Seniors without regular income or financial support.
  • Elderly individuals looking for financial stability without selling their home.
  • Homeowners who want to manage rising medical or living expenses.

Secure Your Future with KBG Infra

At KBG Infra, we believe in building homes that secure your future, not just your present. If you don’t yet own a property, now is the perfect time to invest. Let us help you find a home that offers not just comfort today, but financial security tomorrow.

📞 Contact us today to explore premium property options in Indore and secure your future!