Transforming Homes into Financial Safety Nets: The Prospects of Reverse Mortgages in India

Abstract

The growing proportion of older individuals in the population is expected to become one of the most important social transformations of the 21st century. People over the age of 60 are often excluded financially by banks and financial institutions largely because of their unstable incomes. Reverse mortgages hold great potential as a powerful tool for retirees to supplement their retirement income. The purpose of the present article is to highlight the prospects of reverse mortgage in the Indian context. The study employed a descriptive methodology for understanding the reverse mortgage system in the Indian context. A review of existing literature and analysis of secondary data are conducted to understand the global and Indian trends related to aging populations and future of reverse mortgage products. The study concludes that reverse mortgages could play a crucial role in enhancing the quality of life for India's ageing population, provided challenges are effectively managed. It has good prospects in India.