Revival of reverse mortgage loan in India

Abstract

Old age population is rising in the Indian Society due to the advancement in medical science. The cost of healthcare is increasing dramatically which creates a big cash flow problem for most of the senior citizens who have limited inflow of cash which is also being further depreciated due to rising inflation in the country. House is one of the biggest asset for senior citizens contributing maximum to their wealth. RML is to empower senior citizens to safeguard their hard earned money through which they have purchased their houses. RML also aims to provide financial Independence to the senior citizens. We believe that RML makes more sense in the current context for two major reasons. Firstly, the average life has significantly increased over the years and hence the senior citizens need to be protected at older age. Secondly, in the older times most of the middle class senior citizens had government jobs and hence they were having a stable source of income in the form of pensions but the proportion of government jobs have significantly decreased over the years which exposes the retired senior citizens to various financial risks.