BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks make either monthly payments or a lump sum payment to the senior citizen
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The senior citizen has to surrender the property after 15 years
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The legal heirs cannot repay the loan amount in case of death of the senior citizen
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All of the above
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Detailed explanation-1: -In a Reverse Mortgage, a senior citizen who owns a house can mortgage the property with a bank. Instead of paying EMIs to the bank like with a regular home loan, the bank makes monthly payments to you in a reverse mortgage. Moreover, you can occupy the house and are not required to repay the loan.
Detailed explanation-2: -Reverse Mortgage Loan (RML) enables a Senior Citizen i.e. above the age of 60 years to avail of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house.
Detailed explanation-3: -A homeowner who is above 60 years of age is eligible for reverse mortgage loan. It allows him to turn the equity in his home into one lump sum or periodic payments mutually agreed by the borrower and the banker. The property should be clear from encumbrances and should have clear title of the borrower.
Detailed explanation-4: -Reverse mortgage is a loan which provides additional source of income for senior citizens who have a self-acquired or self-occupied home in India. The borrower is paid payments by the lender against the mortgage.