Secure Your Future During Retirement With A Reverse Mortgage Loan

Reverse mortgage loan came into effect from 2017 to improve the financial condition of the senior citizens. With the loan amount senior citizens can meet regular expenses such as medicine, food, etc. Such loans allow individuals to withdraw funds from financial institutions or NBFCs by keeping their pre-occupied property as collateral. 

A reverse mortgage is considered as one of the most beneficial financial products for post-retirement planning. Reverse mortgage allows applicants to gain access to substantial dividends every month as the loan sanctioned against their property.

Given below are elaborate details of a reverse mortgage loan –


Individuals can receive payments from lenders in different frequencies depending on their requirement, such as: 

  • A lump sum amount
  • Monthly 
  • Quarterly
  • Half-yearly
  • Yearly

Eligibility criteria

To be eligible to apply for a reverse mortgage loan applicants should – 

  • Be above the age of 60 years. 
  • Should own the property for more than 20 years. 
  • Be a resident of India, residing in any of the cities where the lender operates. 


To avail such loans, you will have to submit some documents such as:

  • KYC documents: Aadhaar card, PAN card, driving license, passport, voter ID, etc. 
  • Address proof: Electricity bills, water bills, gas bills, telephone bills, etc. 

Additionally, you will have to submit your property papers to prove the ownership of your property. You may also share the list of your legal heirs at the time of application. 

Reverse mortgage benefits 

  1. Your loan amount depends on the current market value of your property, and thus you get to avail a substantial amount. 
  2. The risk of defaulting on a payment is comparatively less. 
  3. At the time of repayment, the amount depends on the current market value of your property irrespective of the borrowed one. Hence, if the market value drops at the time of repayment, you can save considerably. 
  4. There are no pre-payment or foreclosure charges. 
  5. There are no end-usage restrictions against the loan amount. You can also use the money for debt consolidation to manage your finances better
  6. You are allowed to withdraw funds as and when required throughout the tenor. 
  7. You can appoint a co-applicant such as your spouse. In case you do so, the minimum age of the co-applicant should be at least 55 years. 

The loan amount depends on several factors, such as:

  • Age of the applicant
  • Property value
  • Existing interest rate on reverse mortgage India
  • Government lending limits

Repayment method

Borrowers can repay the loan at any time during the tenor. In other cases, the  repayment of a reverse mortgage scheme is only due when the last surviving borrower passes away. In such situations, the lender will give preference to the legal heirs to repay the loan. 

If they fail to do so, the company will seize the property and liquidate it. Any amount that is higher than the cost of loan will be returned to the legal heirs.

Availing a loan against property enables you to eliminate chances of seizure if you make timely EMI payments. Make sure to check the check the charges of your LAP when you avail such loans. 


  • Your property should be free from any legal obligations. 
  • Leased or rental properties cannot be kept as collateral. 
  • Your property must have a home insurance.
  • You must continue to pay your property tax.
  • Vacating the property will trigger repayment.   

Hence, you can avail a loan against property if you wish to rent your house out. Several financial institutions and NBFCs offer such advances at an attractive interest rate. Bajaj Finserv is one such NBFC that provides Loan Against Property at a competitive interest rate against minimal documents. They also offer a substantial loan amount of up to Rs. 3.5 Crore, a prolonged loan tenor of up to 20 years, online account access, instant approval and other lucrative benefits.

This NBFC also brings you pre-approved offers to ease the application process and save your time. These pre-approved offers are available on home loans, business loans, personal loans, etc. With pre-approved offers, you also get to avail advances at a lower interest rate. You can take a look at your pre-approved offer by sharing details like your name and phone number. 

While you avail a reverse mortgage loan, you do not pay any EMIs, which reduces the immediate financial liability. Besides, you can continue to occupy the property while you avail a loan.