One of the countries other than the United States that regularly publishes headlines about the reverse home mortgage option available to seniors there is India. However, new reports indicate that very few people in the country are choosing to take advantage of the reverse mortgage loan despite all of the media coverage that these loans have gotten in recent months.
"Only 2,000 senior citizens across the country have received loans against their houses under the reverse mortgage scheme that has been introduced by various banks this year. Among the 18 banks and two housing finance companies offering the scheme, State Bank of India alone has extended a majority of the 1,900 loans." (source)
There could be many different reasons that the reverse mortgage loan hasn't quite taken off in India yet including the fact that the loans are relatively new there. These loans didn't take off in the United States until the last couple of years even though they had been available to seniors prior to that time. It may just take time for people to trust the benefits of the reverse mortgage in countries where it is still a relatively new lending process.
Question of the Day: Will the reverse mortgage loan ultimately take off in India?
