Are you a senior citizen who is aged 60 years or more with your own property and looking for funds to meet your daily and other needs? If yes, then you are not alone!
Many senior citizens aged 60+ with their own property face such a situation. Not all get pensions and may not have a source of income after they retire.
They are forced to liquidate their assets to make way for daily outlays. But you don’t need to do that as there is a handy solution to avail funds.
You can get the facility of the reverse mortgage loan from leading lenders in India. If you want to know about it and associated benefits, then this post is a must-read!
What is a reverse mortgage loan?
A reverse mortgage loan is a type of credit that senior citizens can avail of when they mortgage their own property. A senior citizen is provided with a certain percentage of the value of the mortgaged property in the form of a loan. The funds are disbursed to such an applicant periodically. The loan money can suffice the needs of a retiree.
The reverse mortgage loan facility also lets senior citizens get money as monthly payments to pay for any emergency or as per their needs.
The best part of the reverse mortgage loan is that senior citizens don’t need to pay any EMI towards the credit availed. What’s more, they continue to live in the mortgaged house. The repayments happen only if they move or sell the property. If they pass away, then the lender occupies the property and may liquidate it.
Advantages of applying for a reverse mortgage loan
- You can live stress-free with immediate finances
With the home mortgage loan, you don’t have any liability for the money borrowed. Yes, you don’t have to bother paying the EMIs. The money that you receive is yours to spend and meet your needs. And that means that you can improve your lifestyle with hassle-free access to funds.
- No restrictions on how you use the loan money
Applying for the reverse mortgage loan online with a renowned lender in India means that you are entitled to using the loan money without restrictions. It means no matter what your needs are; you can use the money and fulfill everything conveniently. You can always apply for the reverse home mortgage loan online and get approval in 48 hours.
- It comes with no defaulting risk
The home that your mortgage remains in your possession until you leave it permanently. Unless you continue to pay the taxes and insurance on time, there comes no risk of non-payment at all.
- You get to enjoy the benefit of the repayment
In case if you have to make a repayment towards the loan, then you only need to pay the market value of the mortgaged property. And it is irrespective of the total loan amount that is sanctioned.
- Disbursal of money continues to another partner if one passes away
In case if you have applied for the reverse mortgage loan with your spouse as the co-applicant, the disbursal to one will continue even after the passing of the other.
- Easy to meet eligibility and minimal documents
Applying for the reverse mortgage loan does not mean that you have to meet complex eligibility criteria and furnish a bucket of documents. The standard eligibility and documents required by lenders are as follows:
- You should be aged at least 60 years.
- The property that you wish to mortgage must not have any litigation and prior liability. In other words, the property must not have been mortgaged in another secured loan with legal issues.
- The home to be mortgaged should be the permanent house of the applicant and at least 20 years old.
- You need to furnish KYC documents, the address, and income proofs, along with a copy of the documents of the property to be mortgaged. Some lenders may want you to submit some additional documents to process your loan request.
How to apply for a reverse mortgage loan online?
Applying for a reverse mortgage loan online is now hassle-free. You can follow the below standard steps and do that effortlessly. However, you should be aware that the steps of applying for the loan may differ from loan providers to loan providers.
Step 1. Land on the website of the lender you wish to apply for the reverse mortgage loan and fill the online application form.
Step 2. After you submit the online loan application form, then the creditor will contact you within 24 hours to take it forward. You may also need to submit the loan documents with the representative itself.
Step 3. If you have the required eligibility, then you can get the loan approval in 48 hours. The loan money gets disbursed in your bank account within 4 days post-approval.
The basics and the advantages of the reverse mortgage loan are now discussed. If you want a regular income post-retirement, then you can opt for it and live comfortably.