Reverse Mortgage Loan in India - Perceptions of Beneficiaries

An Efficient Financial System should address to the requirements all the sections of the society, including the ageing population. To address the changing requirements of the ageing population, the financial markets have brought in a novel product called ¿Reverse Mortgage Loan¿(RML). In simple terms, RML is the "opposite" of a conventional home loan. A Reverse Mortgage enables a senior citizen to receive a regular stream of income from a lender (a bank or a financial institution) against the mortgage of his home. Reverse Mortgage thus turns the immovable property into a liquid asset that generates a return while it is being used by the owner. It converts the savings (real asset) into liquid. The Indian Financial System is still evolving and has introduced the RML recently. The Study is undertaken to gain an insight into the concept of Reverse Mortgage Loan, an innovative Financial Product, and examine the performance of Public Sector Commercial Banks through the Perceptions of the Beneficiaires - with special reference to Reverse Mortgage Loan in Telangana State.