Indian Mortgage Industry with Reference to Reverse Mortgage Scheme
M.Pavan Kumar Reddy
MBA student, Malla reddy university, Hyderabad, Telangana.
Mr.M. Saida Rao
Asst.Professor, Malla Reddy University, Hyderabad, Telangana.
ABSTRACT
In the current global economy, the mortgage sector is regarded as being quite essential. In recent years, this sector's importance has grown. Many nations throughout the world view the mortgage industry as one of the key indicators of their economic success. Although the mortgage is a debt, it gives the buyer a sense of ownership. A financial institution may provide finance (a loan) to a home buyer or builder either to purchase or secure against the property, either directly or indirectly through intermediaries. Mortgage loan features or qualities can differ greatly depending on the financial organisation.
In the beginning, people in India borrowed money from tiny dealers and had to pay higher interest rates. Basic drawbacks for house buyers included higher rates, an absence of effective norms and regulations, and a lack of security. Over the past two decades, government has stepped in and implemented new regulations that increase transparency in business operations for all parties involved.
This sector is valued by the government, who include it in their annual union budget. People prefer to take out a mortgage loan for investment purposes and to receive tax benefits since they can. On the other hand, very few borrowers believe that buying a home is necessary, and very few think that expanding their money or assets is a good idea.
Another sort of loan is a reverse mortgage loan. This idea was first presented in India's union budgets for 2007–2008. The proportion of senior citizens in Indian society is rising, and the prevalence of old age dependency is rising as well. An elderly person receiving a reverse mortgage receives a lifetime loan for their principal residence. They can use this loan to release the home equity in the asset as a single payment or a series of installments.
In particular, the situation of reverse mortgages is examined in this paper's examination of the Indian mortgage market.
KEYWORDS:- Home loans, reverse mortgages, and the mortgage business.
