Reverse Mortgage India: How Seniors Use Home Equity for Financial Security

When you own a home but live on a fixed income, a reverse mortgage, a loan that lets homeowners aged 60+ convert home equity into cash without selling the house. Also known as equity release mortgage, it’s designed for seniors who want to stay in their homes while getting monthly payments or a lump sum. Unlike a regular home loan, you don’t make monthly repayments. Instead, the lender pays you — and the loan, plus interest, gets repaid when you move out, sell the house, or pass away.

Reverse mortgages in India are offered by a few banks like SBI, HDFC, and ICICI, and they require the property to be self-owned, free of existing loans, and located in a notified urban area. The amount you can borrow depends on your age, the home’s value, and the lender’s policy — typically up to 60% of the property’s market value. Older homeowners get higher payouts because the expected repayment period is shorter. This isn’t a gift or subsidy — it’s a loan, and interest compounds over time, so the total owed can grow quickly.

Many seniors in cities like Prayagraj, a city with a large retired population and high property ownership among older residents use reverse mortgages to cover medical bills, home repairs, or daily expenses without burdening their children. But it’s not for everyone. If you plan to move soon, or if your heirs want to keep the house, this can create complications. The lender holds a lien on the property, and the final payout goes to the lender unless the family repays the full amount.

There’s also a mandatory counseling requirement before approval — meant to make sure you understand the long-term impact. And unlike in the U.S., there’s no government insurance here if the loan balance exceeds the home’s value. That means your family could still owe the difference. Still, for those who need steady cash and have no other assets, it’s one of the few tools available to turn bricks and mortar into monthly income.

Below, you’ll find real guides and comparisons on how reverse mortgages stack up against other options like pension plans, rental income, or selling property. You’ll see what lenders actually require, how interest adds up over time, and how families in places like Prayagraj are using this tool to stretch their retirement savings — without leaving their homes.