One major difference between the schemes offered by life insurance companies and the original reverse mortgage scheme is that the the life insurance companies pay you annuity which is taxable at the time of receipt against the payments received under reverse mortgage scheme.
So my article can be treated as an attempt to generate awareness about existence of reverse mortgage. So the government has framed this scheme. I have not painted any rosy picture of the scheme. So like for getting any other loan you may have to contact more than one lenders, you may have to approach more than one banks for availing this scheme. At least one can use this article to show the bank manager about existence of such scheme. In case anybody is denied this scheme, he can always ask for written refusal and based on the written refusal, you can complain to RBI.
I would request you to be positive. Help senior citizen by sharing such articles.
You have painted a very rosy picture of the scheme. Many of the bank branches are not interested in entertaining proposals under the scheme. Please do make a survey and find out how many branch managers are aware of the scheme and how many are will entertain proposals under the scheme. The scheme as it is , is on paper only!
Looking forward to your reply.
Mr jain you are a madman !! Hope reverse mortgage does not become a norm in Indian family homes, because it social impact is enormous, surely breakup the Indian family norm carying for your parents. What sense is there in RM when at the fag end of life , on a pension one hopes to repay the mortgage.