Global Journal of Research in Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Potential of Reverse Mortgage Loan as a Retirement Planning Tool in India


     

   Subscribe/Renew Journal


The main objective of this research paper is to study the feasibility of reverse mortgage loans as a retirement planning tool among Indian senior citizens and to find the major challenges against the acceptance of reverse mortgage loan. The paper includes SWOT, PESTEL and Five Force analysis by using secondary data. It also includes a detailed market survey conducted by using primary data collected from sample senior citizens. Developed countries are faced with severe budgetary constraints in sustaining their current universal and liberal Old Age Social and Income Security (OASIS) programmes. Developing countries are slated to face acute problems in meeting the OASIS needs of their projected population of the elderly. After the detailed research we found that retirement planning done by majority of retired people is not adequate to satisfy their current needs and majority of them are dependent on transfer from their children as their current source of income. So there lies huge growth potential for reverse mortgage loan in India.

Keywords

Longevity, Retirement Planning, Home Equity, Market Potential, Reverse Mortgage
Subscription Login to verify subscription
User
Notifications
Font Size


  • Chidambaram, P, 2007, “Union Budget, 2007-08”, Para 89, Available on http://indiabudget.nic.in/ub2007-08/bs/speecha.htm, Accessed multiple times, latest on 7th January, 2009

  • Chidambaram, P, 2008, “Union Budget, 2008-09”, Para 166, Available on http://indiabudget.nic.in/ub2008-09/bs/speecha.htm, Accessed multiple times, latest on 7th January, 2009

  • “RBI to Issue Norms for Reverse Mortgage” Business Standard, April 22, 2008 Mumbai

  • DHFL, 2007, “Saksham - Reverse Mortgage Loan”, Available on Dewan Housing Finance Ltd website http://www.dhfl.com/products/saksham.html, Accessed on 11th February 2009

  • ET, (Economic Times), 23rd April, 2008, “UBI set to launch reverse mortgage scheme by April” Accessed on from the link http://economictimes.indiatimes.com

  • IB, 2009, “Indian Bank Reverse Mortgage Scheme for Senior Citizens”, Available on Indian Bank http://www.indianbank.

  • Com/ReverseMortgageScheme.htm, Accessed on 7th February 2009 7. IIPS (Indian Institute for Population Studies), 2000, National Family Health Survey (NFHS-2): 1998-99 India

  • Irudayarajan, S, U.K. Mishra and P Sankara Sarma (1999) “India’s Elderly: Burden or Challenge?” Sage Publications, New Delhi

  • “Reverse mortgages fail to take off in India”, Livemint.com, The Wall Street Journal, Available on http://www.livemint.com/2008/02/20005155/Reverse-mortgages-failtotake. Html.

  • LICHF, 2009, “Reverse Mortgage Loan Scheme: Highlights”, Available on LIC Housing Finance website http://www.lichousing.com/, Accessed on 12th February 2009

  • NHB (National Housing Bank), 2008, “Reverse Mortgage Operational Guidelines”, Available on www.nhb.org.in/Whats_new/Reverse_Mortgage_Operations_Guideline htm, Accessed on 7th January, 2009

  • PNB, 2007, “Reverse Mortgage Loan – “PNB Baghban’ For Senior Citizens” Available on www.pnbindia.com/pnbbaghbhan.htm.

  • Rajgopalan, R, 2006, “Reverse Mortgage Products for the Indian Market: An Exploration of Issues, T.A Pai Management Institute (TAPMI), Working Paper available on http://www.tapmi.org/paper1/rr.rtf.

  • Reddy, Y, V, 2008, “Annual Policy Statement for the Year 2008-09” Governor, Reserve Bank of India, Available on http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/84223.pdf, Page 48.

  • SBI, 2009, “SBI Reverse Mortgage Loan”, Available on State Bank of India website http://www.sbi.co.in/ Accessed on 12th January 2009

  • SEBI, June, 2007, “Draft Regulations for Public Offer and Listing of Securitized Debt Instruments”, Available on http://www.sebi.gov.in/commreport/consult.pdf, Accessed on 24th March, 2008

  • Shah, R (2008), “Reverse Mortgage Moves Ahead”, Corporate India, March 31, 2008, pp 32-33

  • Stephenson, C, 2007, “A Tutorial on Reverse Mortgage”, Available on the Website http://www.homefirstmortgage.com/reverse.

  • UBI, 2009, “Union Reverse Mortgage (URM)”, Available on Union Bank of India website http://www.unionbankofindia.co.


Abstract Views: 718

PDF Views: 0




  • Potential of Reverse Mortgage Loan as a Retirement Planning Tool in India

Abstract Views: 718  |  PDF Views: 0

Authors

Abstract


The main objective of this research paper is to study the feasibility of reverse mortgage loans as a retirement planning tool among Indian senior citizens and to find the major challenges against the acceptance of reverse mortgage loan. The paper includes SWOT, PESTEL and Five Force analysis by using secondary data. It also includes a detailed market survey conducted by using primary data collected from sample senior citizens. Developed countries are faced with severe budgetary constraints in sustaining their current universal and liberal Old Age Social and Income Security (OASIS) programmes. Developing countries are slated to face acute problems in meeting the OASIS needs of their projected population of the elderly. After the detailed research we found that retirement planning done by majority of retired people is not adequate to satisfy their current needs and majority of them are dependent on transfer from their children as their current source of income. So there lies huge growth potential for reverse mortgage loan in India.

Keywords


Longevity, Retirement Planning, Home Equity, Market Potential, Reverse Mortgage

References