Reverse mortagage
Ria
(Querist) 14 September 2011
This query is : Resolved
Respected experts,
Can a senior citizen receive a lump sum amount in hand from the bank in case of reverse mortgage ?
Sailesh Kumar Shah
(Expert) 14 September 2011
Q. Can a senior citizen receive a lump sum amount in hand from the bank in case of reverse mortgage ?
Ans. Yes, Senior citizen can receive lump sum amount.
Isaac Gabriel
(Expert) 14 September 2011
Reverse Mortgage is not allowed in respect of the properties of individuals above the age of 60.
Sailesh Kumar Shah
(Expert) 14 September 2011
Issac Sir
Please clear "not allowed" or "allowed".
Raj Kumar Makkad
(Expert) 14 September 2011
It is not allowed for the persons having age more than 60 years.
Sailesh Kumar Shah
(Expert) 15 September 2011
I reiterate on 'It is allowed for the persons having age more than 60 years'.
Guest
(Expert) 25 September 2011
I agree with Shri Shailesh Kumar Shah. In fact the reverse mortgage loan system is specially designed just to benefit the senior citizens (above 60).
BUT, LUMP SUM IS NOT ALLOWED IN RML, AS THAT ITSELF DEFEATS THE SPIRIT OF RML. IF LUMP SUM WOULD HAVE BEEN ALLOWED, THE SCHEME WOULD NOT HAVE BEEN CALLED AS RML. IT WOULD HAVE BECOME MERELY A USUAL MORTGAGE LOAN(not RML).
Reverse Mortgage Loan (RML) enables a Senior Citizen i.e. above the age of 60 years to avail of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house.
The bank, in RML ssystem, gives you a series of cash-flows for a fixed tenure. These can be thought of as reverse EMIs.
Reverse Mortgage Loans are extended by Primary Lending Institutions (PLIs) viz. Scheduled Banks and Housing Finance Companies (HFCs) registered with NHB.
The loan can be provided through monthly/quarterly/half-yearly/annual disbursements or a lump-sum or as a committed line of credit or as a combination of the three.
The maximum period of the loan is 20 years. The loan amount may be used by the Senior Citizen borrower for varied purposes including up-gradation/ renovation of residential property, medical exigencies, etc. However, use of RML for speculative, trading and business purposes is not permissible.
