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The IUP Journal of Bank Management
Do Elder Homeowners from Different Regions Differ Significantly in Awareness and Willingness of Reverse Mortgage: Some Sample Evidence from Delhi and Rajasthan.
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The Government of India introduced Reverse Mortgage (RM) scheme in 2007 as a social security scheme which renders an opportunity for aging India to convert vast illiquid housing assets into regular cash streams. This paper makes an attempt to examine whether Indian elderly homeowners from metro and non-metro cities are significantly different in their awareness and willingness towards RM, as both regions are highly diversified in literacy, lifestyle, and cultural and traditional aspects. The results reveal that awareness and willingness of elderly homeowners towards RM is independent of geographic regions. The study advocates that equal efforts should be made in both metro and non-metro regions for promotion of awareness. To augment the willingness towards RM, the National Housing Bank (NHB) and other bankers should include fair, feasible and friendly terms so that the market size can be enhanced.

 
 
 

The United Nations (UN, 2015) reports that elderly population aged 60 and above constitutes 901 million in absolute terms (12%) of the total population of the world with a growth rate of 3.26% annually. The absolute number of Indians aged 60 and above is projected to be 134 million by 2021 from 104 million in 2011 as reported by Ministry of Statistics and Program Implementation (MOSPI), Government of India (2016).1 The noticeable phenomenon of ageing India has attracted the attention of government, policy makers and financial institutions to the financial requisites of the elderly. As per the standards established by the UN, a nation becomes gray/aged, when 7% and above population is represented by older people (Hirayama, 2010). In the history of India, 2001 was a remarkable time of demographic transition when the share of elderly exceeded that standard proportion (7.47%); in 2011 it was 8.3% and is expected to reach 12.6% in 2025 (RGI, 2011). The burgeoning proportion of elderly in the total population and its social and economic consequences is one of the priority issues before GOI. Globally, one of the chief concerns is how senior citizens will manage their regular inflow of income after retirement.

 
 
 
Bank Management Journal,India introduced Reverse Mortgage (RM),Social Security Scheme ,the National Housing Bank (NHB),Awareness and Willingness towards RM.