The Changing Regime of Indian Demographics and Scope of Reverse Mortgage Loan

  • Garima Bhardwaj Assistant Professor, Department of Commerce, PGDAV College (Eve), University of Delhi, New Delhi, India
Keywords: Reverse Mortgage Loan, Senior Citizens, Ownership of House Property, Financial Independence, Aging of India, Post Retirement monetary needs, Potential of RML


Currently, one of the most valuable assets in the hands of India is the human resource with the largest percentage of the young generation. But it can turn out to be a major threat for India in  the time to come, in the form of a great proportion of the elderly population and as per the current status, very less percentage of senior citizens are covered under any formal pension scheme, and the rest is financially dependent over the family members. Here Reverse Mortgage Product can play a great role in working as an potential option of post-retirement financial needs as it allows senior citizens to get money at the time when they may not be eligible for any other loan because it is the ownership of the House Property that matters the most and not the financial soundness of the borrower. Also, the gradual changes in India’s way of thinking and living due to globalization, technological advancement, improved literacy, higher degree of urbanization, etc., reflect being more aware and concern about post-retirement social and financial independence in the long-run rather than having the only option of bequest of the title of the house property (the giant asset, a great number of senior citizens possess as their life time earnings and savings) and here RML gets a substantial act to perform.

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