A Reverse Mortgage is a loan facility that allows senior citizens to convert their home equity into regular income, without selling the property.
In a reverse mortgage, homeowners (usually 60 years and above) pledge their property to a bank or financial institution and receive monthly payments, lump sum, or a credit line.
Unlike a regular loan, the borrower does not repay during their lifetime. The loan is recovered after the borrower’s death or sale of the property.
In India, reverse mortgages are regulated by the Reserve Bank of India.
"A 65-year-old homeowner receives ₹25,000 per month from a bank against their house under a reverse mortgage scheme."