If you are familiar with the world of loans, then you may have an idea of the mortgage loan. It is a facility that allows you to keep your property as the collateral. This way, you can get a large loan amount at a lower rate of interest. You are also permitted to use the loan amount for any needs and pay smaller EMIs over a long tenor.
But what about the reverse mortgage loan? Do you have any idea how it works? If not, then this post is a must-read!
What is the reverse mortgage loan, and how does it work?
The reverse mortgage loan is a secured loan facility offered by leading lenders and is available in major cities of India. If you are aged 60 and are a senior citizen with ownership of the property where you live for 20 years, then you can avail the loan.
The reverse mortgage India facility lets you keep your property as the collateral to borrow a considerable principal limit. The best benefit of availing the reverse mortgage loan scheme is that you are free from any liability such as the EMI.
Yes, as long as you continue to remain in the mortgaged premises and keep paying taxes on the property, you don’t have to repay EMIs. You will need to repay the amount only when you move out of the premises, sell it or pass away.
The reverse mortgage loan in India facility provides you with the money in the form of a lump sum amount, monthly total and a line of credit. This way, the reverse mortgage loan money helps senior citizens live a financially less dependent and stress-free free. It is because they are allowed to use the loan money the way they want it. Be it facing medical emergencies, debt consolidation, marriages, and business expansions and more; the funds can be used for everything.
What benefits does the Reverse Mortgage Loan provide?
- You are no Longer Financially Dependent on Others
The immediate advantage of availing the reverse mortgage facility is that you don’t have to be financially dependent on anyone once you retire. And that’s an incredible feeling when you can still manage your expenses with no fixed monthly income. If you are getting a pension and apply for the loan, then the pension amount is what you can save or invest.
- You have the Flexibility of Using the Loan Amount
Availing of the funds via the lucrative reverse mortgage facility entitles you to use the loan amount for any needs as per your preferences. For all legal needs under the sun, you can use the loan money without restrictions.
- You have the Freedom Not to Pay the EMIs
You don’t need to bother about paying the EMIs, unlike in a conventional loan. Suppose if you don’t have any income, then you don’t need to stress about paying monthly EMIs. Instead, the loan money works as your ‘go-to’ fund to manage outlays without hassles. With no EMIs to pay, you also don’t run the risk of defaults and affecting your credit score.
- Avail the Repayment Benefit
Suppose if you move out of the mortgaged property or sell it, then you need to make the repayment. But the repayment amount will only be the market value of the property irrespective of the approved loan amount.
- Easy to meet Eligibility Terms
The reverse mortgage loan in India by renowned lenders let you apply for it with minimal eligibility norms. All that you need to maintain is being 60 years of age or more and ownership of the residence for at least 20 years.
You just went through the concept of the reverse mortgage loan scheme in India and its benefits. If you are retired and don’t have a fixed income, then you can avail of the reverse mortgage facility. This way, you will have a consistent source of income every month till the time you live in that mortgaged property.
Before applying for this amazing facility and get a considerable line of credit to manage your expenses, you should compare all available offers online. You can land on a third-party website and do that free of cost. Doing that helps you choose the lender that gives the maximum loan amount against your property.