Submitted in Partial Fulfillment of The Requirements For The Award of The Degree of

A STUDY ON THE REVERSE MORTGAGE SYSTEM IN CHENNAI
Submitted in partial fulfillment of the requirements
for the award of the degree of
BACHELOR OF COMMERCE
(Professional Accounting)
by
Name: PIUS VARGHESE SCARIA
(Register No: 2001721100055)
DEPARTMENT OF COMMERCE (SHIFT - II)
MADRAS CHRISTIAN COLLEGE (AUTONOMOUS)
TAMBARAM, CHENNAI – 600 059
APRIL 2023
CERTIFICATE
This is to certify that this project report entitled “A STUDY ON THE REVERSE
MORTGAGE SYSTEM IN CHENNAI” is a record of personal work done by Mr.
PIUS VARGHESE SCARIA, a student of Bachelor of Commerce (Shift – II),
Madras Christian College, Chennai 600 059, during the period of his study in the
academic year 2022 - 2023. This project report represents entirely an independent
work of the candidate under my supervision and guidance.
Place: Chennai
Date: SIGNATURE OF GUIDE
Place: Chennai
Date: SIGNATURE OF EXTERNAL EXAMINER

ACKNOWLEDGEMENT
I first and foremost wish to express my profound thanks to our honorable
Principal DR. P. WILSON for providing me an opportunity to study in this
distinguished institute.
I then wish to extend my sincere thanks to the respectable Head of the
Department DR.NIRMALA MOHAN as her constant encouragement proved as a
source of unparalleled inspiration.
I express deep gratitude to my Guide Mr. JOSHUA W for the proper
guidance and constant support to carry out this project report. His guidance helped
me to overcome all the hurdles. Without his support and help this work could not
have been completed.
Above all I thank God Almighty for showering upon me His grace and
blessings.
PIUS VARGHESE SCARIA

DECLARATION
I hereby declare that the project report entitled “STUDY ON AWARENESS OF SIP
AMONG PEOPLE IN CHENNAI” is an original work done by me in partial
fulfilment of the requirement for the awarding of the degree of Bachelor of
Commerce under the guidance of Mr. JOSHUA W, Department of Commerce (Shift
– II), Madras Christian College, Tambaram, Chennai - 600 059, and the same has not
been submitted elsewhere for the award of any degree.
Place: Chennai
Date:
PIUS VARGHESE SCARIA

TABLE OF CONTENTS- PROJECT REPORT
CHAPTER TITLE PAGE NO
1 Introduction 1-22
2 Review of Litersture 23-31
3 Research Methodology 32-33
4 Data Analysis and Interpretations 34-61
5 Findings and Suggestions 62-63
6 Conclusion 64
7 Bibliography 65
8 Annexure
TABLE OF CONTENTS- INTERNSHIP REPORT
S.NO TITLE PAGE NO
1 Profile of the company 97-98
a2 Learning Experience 99
3 Consolidation of records
4 Conclusion.
LIST OF TABLES
QUESTION NO TITLE PAGE NO
4.1 Table showing the age of the respondents
4.1 Table showing the gender of the respondent
4.3 Table showing the highest level of Education
4,4 Table showing the Monthly Income
4.5 Table showing the State
4.6 Table showing that the respondents have heard of

the term Reverse mortgage before.
4.7 Table showing that the respondents are aware of
Reverse Mortgage in India.
4.8 Table showing anyone of the respondents family
ever considered taking a Reverse Mortgage loan?
4.9 Table showing what are that the respondent’s
primary concerns about Reverse Mortgage system.
4.10 Table showing the Reverse mortgage System in
India is a good option for middle class people.
4.11 Table showing the respondents understanding on
interest rate charged on Reverse mortgage loans
are high in India.
4.12 Table showing respondents understanding on the
current eligibility criteria for availing Reverse
Mortgage loan in India.
4.13 Table showing that have respondents faced any
difficulties gathering about reverse Mortgage loan
in India.
Reverse Mortgage System and how does it work.
who is Eligible for Reverse Mortgage.
how do you find a reputable lender for a Reverse
Mortgage
4.17 Table showing the respondents would recommend
the Reverse Mortgage System in India to someone
in need of financial assistance.
whether government should take more steps to
promote Reverse Mortgage System among middle
class.
4.19 Table showing that the respondents have taken any
kind of loan from a financial institution before.
4.20 Table showing that the respondents understanding
of how a Reverse Mortgage works.
4.21 Table showing does respondents think Reverse
Mortgage System in India is well regulated.
4.22 Table showing that the respondents have ever
discussed the Reverse Mortgage System with a
financial advisor
4.23 Table showing that the respondents awareness on
how important do you think it is for middle class
people to have access to the reverse Mortgage
system in India
4.24 Table showing the Reverse Mortgage System in
India has the potential to alleviate the financial
stress among the respondents?
4.25 Table showing the factors would make respondents
consider taking a RM loan?
4.26 Table showing the respondents opinion on the
Reverse Mortgage in India is a good option for the
senior citizens in India?
4.27 Table showing how likely the respondents are to
recommend the Reverse Mortgage System in India
to a friend or family member?
4.28 Table showing that any changes the respondents
would like to see in the Reverse Mortgage System
in India
CHART NO. TITLE PAGE NO.
4.1 Chart showing the Age of the respondents
4.2 Chart showing the Gender of the respondents

4.3 Chart showing the Highest Level of Education
completed by the respondents
4.4 Chart showing the Monthly Income earned by the

Respondents
4.5 Chart showing the State the e Respondents are

residing
CHAPTER-1
INTRODUCTION
Reverse mortgages:
A Reverse Mortgage is a form of the financial arrangement between an ‘Equity rich-

Cash Poor’ Borrower and a Reverse Mortgage Lender. This arrangement enables
senior citizens to convert sizeable home equity into loans in the form of cash
advances with no immediate repayment required. At the same time, they will permit
the borrowers to stay in their homes up until their passing, the sale of the home, or
their permanent relocation. These loans collect interest, but there is no need to repay
the principal or interest as long as none of the aforementioned circumstances take
place. The debt secured by the reverse mortgage increases over time as payments are
made to the borrower. The amount of debt that the reverse mortgage secures
increases over time as the borrower makes payments. House equity conversion, often
known as a reverse mortgage, is the process of converting home equity into usable
cash while the homeowner is still residing in the property. Lenders offer Reverse
Mortgages because there is a potentially large and growing market as the number of
elder house owners is increasing in every country.
Reverse Mortgage (RM), a financial invention with origins in Western society, was
first introduced in 1981 and created for elderly households with wealth but limited
funds. According to Mayer and Simons (1994), RM gives senior homeowners the
chance to convert the equity they have invested in their homes into a steady and fair
monthly income without having to leave their existing residence. It's a loan that is
absolutely opposite from a regular mortgage in that the banker still pays the
borrower (monthly or all at once) while not obtaining any home equity (Bartel &
Daly, 1980). Once the borrower dies or vacates the property for more than a year,
the loan must be repaid. As RM is nonrecourse, the lender cannot seize other assets
at the time of repayment if the profits from the sale of the home are less than the
amount lent. Adhere to the laws of Europe and the USA
In 2007, the then-finance minister P. Chidambaram launched RM in the Indian

market as a fourth tower of social security as a cornerstone in the direction of elder
welfare under the supervision of National Housing Bank.
Features of Reverse Mortgages:
 Minimum Age Limit: The typical age requirement for borrowers is greater
than 60. The working class's retirement age is considered when setting this age
limit, as well as the rules of the social security system, other government-
sponsored assistance programs, and other factors.
 Loan Amount: The maximum loan amount is determined by the value of the
home, the borrower's age, the loan's cost, and the payment schedule they
choose. The largest lump sum payment a borrower may receive, the net
present value of monthly payments, or the Line of Credit is often the loan
amount or Principal Limit. The loan amount is capped at a proportion of the
value of the property.
 Loan Interest: Loan interest added to the borrower's debt may be constant or
variable.
 The loan interest for fixed-rate reverse mortgages would remain unchanged
until repaid. When there are adjustable rates, the rates are changed at
predetermined intervals based on a reference rate, such as the T-Bill rate.
There are normally stated interest rate caps for both the current period and the
long term for these adjustable rates. In other situations, such as the Fixed
Repayment Mortgage in the UK, there is no clear interest rate; rather, the
borrower pledges to pay the lender more money than he borrowed when the
house is sold. Depending on age and life expectancy, the higher amount will
vary.
 Payment Options: Once the loan amount has been established, it will be
disbursed in accordance with the selected payment method. The borrower will
be able to choose among the usual choices, such as getting a single large
payment, a series of smaller monthly installments, or using a line of credit.
 Repayment: As long as the borrower occupies the property as their primary
residence, reverse mortgages are not subject to repayment. Whenever the
borrower sells the home, vacates the property permanently, or passes away,
the entire loan sum becomes due and payable. The borrower's heirs or the
lender may sell the property and recoup the amount when the loan becomes
due and payable as a result of the borrower's death. The difference is given to
the heirs if the value of the property exceeds the outstanding loan balance.
 Debt Limit: The total of all loan advances, including any that were used to
cover loan expenses or settle previous debt, plus all interest added to the loan
sum, constitutes the debt on a reverse mortgage. The borrower's debt is
restricted by the value of the home even if the loan total increases to be higher
than the home's future value.
 Loan Costs: An origination charge, an appraisal fee, a mortgage insurance
fee, and other closing costs are frequently included in loan costs. These
upfront expenses, which may be covered as part of the reverse mortgage,
typically have caps.
 Mandatory Occupation: The borrower must occupy the property. The
borrower’s income and credit worthiness are not of concern because payments
are made from the lender to the borrower.
 House Ownership: The property must be used by the borrower. The borrower
receives payments from the lender, hence the borrower's income and
creditworthiness are unimportant.
INDIAN MARKET POTENTIAL
India-specific Characteristics of Relevance to Reverse Mortgage System
• There are no universal old age social security-related benefits. Only about
10% of the active working population is covered by formal schemes. This
would substantially enlarge the potential target market for RM: ‘house-rich,
cash-poor.
• A much lower proportion of urban households, and by implication, less scope
for RM.
• A much larger proportion of elders co-living with their family members of
subsequent generations and hence less scope for RM
• A possibly stronger bequeath motive, reducing the scope for RM.
• A possibly higher real rate of appreciation of real estate and housing prices,
making RM more attractive to the lender.
• Widespread undervaluation of real estate properties to accommodate
transactions involving unaccounted money and evasion of taxes on property
and real estate transactions
• Complexity, variety, and location-specific variations in types of home
ownership.
a. Benami holdings/ ‘Irrevocable power of attorney

b. Leasehold/ freehold
c. Land use conversion regulations
d. Floor space regulations
e. Rent/ tenancy controls
f. Disposal of ancestral property
• Absence of competitive suppliers for immediate life annuity products. This,

in turn, is a consequence of
a. Lack of data on old age mortality rates
b. Lack of long-term treasury securities for managing interest rate risks of
annuity providers
• The fledgling nature of the secondary markets for mortgage and securitization of
mortgage loans
• India specific legal and taxation issues
a. License/ Permission required under insurance/ banking regulation for

offering RM
b. Income tax treatment for RM lender and borrower
c. Capital gains on property
d. Reporting and provisioning by the lender as per banking/ insurance
regulation
e. Seniority of RM claims vis-à-vis other secured lenders
f. Status of RM loan in case of insolvency
Old Age Population
Though the Indian population is still comparatively ‘young’, India is also ‘ageing’.
Some demographic projections for India indicate that
• The number of elderly (>60 yrs) will increase to 113 million by 2016,
179 million by 2026, and 218 million by 2030. Their share in the total
population is projected to be 8.9 % by 2016 and 13.3% by 2026. The
dependency ratio is projected to rise from 15% as of now to about 40% in
the next four decades
• The percentage of >60 in the population of Tamil Nadu and Kerala
will reach about 15% by 2020 itself!
• Life expectancy at age 60, which is around 17 yrs now, will increase
to around 20 by 2020
SOURCES OF INCOME SUPPORT FOR THE ELDERLY IN INDIA
As per a survey of the National Sample Survey Organization (NSSO) in 1994,

less than 4% of the elderly lived alone. A 1995-96 National Sample Survey of
the elderly reported that about 5% of them lived alone, another 10% lived with
their spouses only and another 5% lived with relatives/ non-relatives, other than
their own children. In other words, co-residence with children and other
relatives is predominant.
However, the following aspects are worrisome:
• The extent and adequacy of support, especially for widows
• Vulnerability of such support to shocks to family income
• As incomes and life expectancy rose in the now developed countries,

simultaneously there was a decline in co-residence rates and intergenerational
support. It may happen in India too
• Strains due to demographic trends seem inevitable: fewer children must support
parents for longer periods of time. In a recent survey covering 30 cities, 70% of the
respondents did not expect their children to take care of them after retirement.
• Job related migration of youth within the country and emigration.
POTENTIAL MARKET SEGMENTS:
Age Group
Above 58 years, assuming 58 is the typical retirement age. Older the individual,
more attractive will be RM. Additional considerations will include the minimum
age specified for preferential treatment as ‘senior citizens’ in matters such as
income tax or the recently introduced Varishta Bima Yojana.
High House Equity
The current monthly annuity payout by LIC under its immediate annuity product
Jeevan Akshay is 844 Rs for a single premium payment of Rs 1 lakh, for a person
aged 651.
The annuity will be lower in case of joint life or annuity certain options. If we were
to use a minimum of Rs 5000 as the monthly annuity that makes RM a worthwhile
activity, we need an RM loan of around Rs 6 lakhs. Assuming an a loan-to-home
value ratio of 60%, this implies a current market value of Rs. 10 lakhs.
Low Current Incomes Relative to Desired Standard of Living
Amongst such households, we are looking for those whose current levels of income
are insufficient to afford their desired standard of living. The salary replacement
rates suggested in the literature, for maintaining the same standard of living after
retirement as before, is around 60%. This implies a pre-retirement take home
salary or income (after- tax) of around Rs 9000-10000 a month. A potential RM
borrower would be one who had such a pre-retirement income but no substantial
pension benefits. Therefore, he would have been employed in the private sector or
self-employed.
Long Tenure at Current Home
RM is attractive to a borrower especially when he values continued stay in his current

residence and plans to do so for a long term into the future. This is likely when he has
already stayed in his current home for a relatively longer period- say a minimum of
10 years. Additional indicators for such a desire could be a person currently resident
in one’s home town/ state.
Lack of Other Supports
If such an individual is living alone, as in the case of a widower or widow, RM can

make a substantial contribution to his/ her standard of living. Alternatively, the
next generation may be living far away, either in India or abroad.
No Significant Bequeath Motive
Literature suggests that there is a basic conflict between taking an RM loan and a
desire to bequeath property to one’s heirs. If an elderly homeowner has no
children, this question may not arise. Otherwise, we need to look for attributes
indicating a weakbequeath motive. For example, in the Indian context, it could
mean ‘no sons’. Or it could be that the entire next generation of the family has
migrated to another metro or abroad with no intention of coming back. They may
be much better off than the older generation and may not value bequests, if any.
Independence and Quality of Life
A potential RM borrower must be an elderly person who values his financial

independence. He must be interested in maintaining his desired quality of life rather
than curtailing consumption for lack of current cash income. This implies he must
be mentally prepared to consider borrowing in old age, let alone through
innovative financial products like RM. This implies certain minimum education
and exposure to financial savings/ assets/ markets.
SOURCES OF INDIAN DATA RELEVANT TO RM:
It is very obvious that the target segment for RM is very atypical- ‘the generation
past’ rather than the much discussed ‘generation next’. Therefore it is not
surprising not much data of specific relevance to RM is available. Basically we
need information on the following: characteristics of households primarily of the
elderly- age profile, current market value of the house, current monthly incomes
and expenditures (including health care), other financial assets and sources of
support, desires for bequests and so on. We also need reliable projections on
mortality rates among the elderly, appreciation rates in property values in the long
run, long-term interest rates etc.
Housing Stock Owned and Occupied by the Elderly
The Census of 2001 has published a lot of data on housing conditions. However,
the tables published so far do not serve our purpose:
• No valuation of house property has been attempted (though understandably).
Houses have been classified as ‘Good’, ‘Liveable’ or ‘Dilapidated’; ‘owned’
or ‘rented’; size in terms of number of rooms; urban/ rural etc.
• Even though data on the age of the head of the household has been reportedly
collected, such tables have not been published yet.
We came across another recent survey, namely the National Family Health Survey
(NFHS-2), conducted in 1998-99, involving a large national sample of almost 92000
households. This survey’s focus was on the family health status, especially of women
and children. However, according to this survey,
• The age of the head of the household was 60+ in 19.2% (22.4%) of the urban
(rural) households.
• About 12% of men and 43% of women above 50 were widowed.
Unfortunately, this survey does not provide any information on type of home
ownership, value of houses etc.
The latest published study on the elderly in India is by researchers from the Centre
for Development Studies.
• Projections in this study, based on census data till 1991, indicate that urban
areas in the states of Kerala, Tamil Nadu, Goa and the union territory of
Chandigarh may provide the maximum immediate potential for RM. This is
based on proportion of elderly and literacy levels.
• This study also projects the population of ‘old-old’, i.e., above 70 yrs, the
prime target for an RM loan.
According to a report, appropriate housing for the elderly in India has a high-growth
potential. This report says, “A study conducted by the Technical Committee on
Population, Planning Commission shows that 52 per cent of elderly people in urban
areas are living alone. There is a large segment of active old population who is living
alone and is on the lookout for relaxed lifestyle”.
Old Age Mortality
Reliable data on mortality rates at various ages, especially amongst those above 60
is absolutely crucial for designing any RM product. Unfortunately, the only
published data available is the one on annuitant lives published by LIC. This is
based on the experience of LIC in their Group annuity schemes with ‘return of
capital on death’ option, during the period 1996-98. This table covered male lives
only as data on female lives was inadequate.
As this table does not cover experience on individual life annuities and female
lives, this is not a reliable basis for designing an RM product involving
significant mortality risks. More importantly, this cannot be compensated by any
study in the near future. This is also one of the reasons behind the reluctance of
private insurance companies in India to offer immediate life annuity products.
Long term Interest Rates
As discussed earlier, the loan limit or the annuity amount under an RM has to be
decided on the basis of expected long-term interest rates. This represents a
commitment by the lender, even though interest accumulates on a floating rate
basis. Therefore, any RM lender should have access to reliable models for
projecting long-term interest rates. The zero-coupon yield curve released by the
NSE on a daily basis is the most widely available set of rates.
Real Estate/ Housing Appreciation Rates
Unlike interest rates, projections/ assumptions have to be made for specific cities/
localities/ types of housing etc. Though credit rating agencies have recently begun
rating real estate developers, no published geography specific inflation indices of
property values are currently available, to the best of our knowledge.
Legal, Regulatory, Taxation and Transaction Cost Related Issues
The specific product features and required supply-side alliances to offer RM loans
have to be designed with a thorough understanding of the following:
• Entry restrictions under banking and insurance laws
• Capital adequacy, reporting and provisioning by lenders as required by banking/

insurance regulation
• Legal protection for the RM lender against claims from other secured creditors
and under insolvency laws
• Tax treatment of interest and capital gains in the hands of borrower and lender.
• Protection to the lender to ensure ‘arm’s length’ pricing at the time of disposal of
property
• Location specific real estate related laws and transaction costs, including title
search, property valuation, stamp duties etc.
• Counselling services to potential borrowers, by independent agencies to protect
adverse publicity from legal suits.
• Absence of secondary markets, mortgage backed securitization or insurance for
RM loans
HOW REVERSE MORTGAGE WORKS:
Mr. Patil has retired after what can be called a very fulfilling career with a leading
engineering company. His only daughter is married and well settled in Bangalore.
He owns a large house in Thane -- worth about Rs 80 lakh (Rs 8 million), but he
has limited savings (including PPF and EPF) of Rs 10 lakh (Rs 1 million) to
generate any major income.
He is not expecting any pension either. His worry now is to pay for his modest
monthly expenses of Rs 20,000. His financial assets can at best generate Rs 10,000
per month for him and the income thus generated will not keep pace with inflation --
meaning that after five years, when he will require Rs 30,000 per month, while his
financial assets will still generate only Rs 10,000 per month.
The only option he had earlier been to rent his house and move to a smaller house
himself or to sell his house altogether and invest the proceeds to earn a higher
monthly income. Either way, in his old age, he will be forced to look around for
accommodation and keep on worrying about the rising rents -- not a very happy
prospect.
This is where reverse mortgage can be of great value.
Budget 2007 amongst other things gave a green signal to the launch of Reverse
Mortgage -- a widely used instrument in the developed world by the elderly to derive
cash flows from their owned house.
The popularity of the instrument lies in that it converts an illiquid asset -- the house
-- into liquid cash flows for the owner, typically a senior citizen. A more attractive
feature is that senior citizens can continue to live in that house even after drawing
cash-flows from it. Here is how it works. Reverse mortgage as its name indicates
operates in a manner opposite to that of the typical mortgage such as a home loan.
In a typical mortgage, we borrow money in lump-sum right at the beginning and
then pay it back over a period of time. In our payback -- the EMI -- a portion goes
towards paying the interest and the remaining goes towards paying back principal.
All along, we pledge the asset -- namely the home we have bought with the loan --
to the bank. This asset is the security against which the bank is lending to us. In
reverse mortgage, we pledge a property we already own (with no existing loan
outstanding against it). The bank in turn gives us a series of cash-flows for a fixed
tenure. These can be thought of as reverse EMIs.
There are various forms of reverse mortgage available in the developed countries.
The specific format National Housing Board (the facilitator for housing finance in
India) is promoting is one in which the tenure is 15 years and the owner of the house
and his/her spouse continue to live in the house till their death -- which can occur
later than the tenure of the reverse mortgage.
Simply put, in case of Mr and Mrs Patil, if they were to opt for reverse mortgage
for tenure of 15 years, they will get annuity (the reverse EMI) from bank for 15
years. After that, the annuity payments stop.
However, they continue to live in the house. Assume that Mr Patil dies after 17
years. Mrs Patil can still live in the house till she is alive. After her death, the
bank will give their heirs two options -- settle the overall outstanding loan and
retain the house or the bank will sell the house, use the proceeds to settle the
outstanding loan and give the rest to the heirs.
The bank bears the risk that the outstanding will exceed the market value of property
then and will not ask for the difference from the heirs.
The key question is -- how much of an annuity income can my house generate
using reverse mortgage? The banks have so far not indicated which interest rates
they will use to determine the EMI -- however, we can safely assume that it will
not exceed the interest rates used for loan against property -- which is currently in
the region of 12-14%.
Second important variable is the loan to value ratio. Most loans against property
work at 60% loan to value ratio -- i.e. by pledging a Rs 1 crore (Rs 10 million)
property, you can get a Rs 60 lakh (Rs 6 million) loan. Some banks are however
designing reverse mortgage products with a higher loan to value ratio -- as much as
90% in some cases.
The specific annuity paid out also depends on the age of the home owner. Higher
the age, higher the annuity everything else being constant. For simplicity consider
a 60-year-old home owner taking reverse mortgage with loan to value ratio of 80%
and an interest rate of 12%.
CONSIDERATIONS IN PRODUCT DESIGN:
In this section, we focus on aspects of product design likely to be attractive

from the perspective of a potential RM customer and a lender. Customer
Perspective
• Empathetic counseling from professionally competent and independent
counselors- NGOs like Help Age, Dignity Foundation, Indian Association of
Retired Persons (IARP) etc., may be interested in providing such services
• Ratio of RM Loan limit to current market value of property: This will be a
function of borrower’s age, projected long term interest rates and property
appreciation rates
• Flexibility in draw downs: The line of credit with interest credit for
unutilized portion is the most popular choice in the U.S context. The same
might be true in India too. Cash may be withdrawn as and when needed,
especially large amounts to meet medical and other emergencies, in contrast
to a regular monthly amount. However this is vulnerable to myopic
withdrawals or under pressure from relatives.
• Minimum possible RM closure costs
• Clarity in borrower’s responsibility for property maintenance and paying

property taxes, insurance etc. Strong legal protection against foreclosure
and/ or forcible eviction based on fine print may be desirable. Alternatively,
the RM lender should be willing to take over such a responsibility against
deduction from RM loan limit/ annuity.
• Clarity in tax treatment of RM receipts, accrued interest, capital gains etc.
• Option to refinance in case interest rates decline substantially.
• Protection against lender defaults- though not very critical.
Lender Perspective
The major concern is with respect to the risks of mortality (longevity), interest rates
and property appreciation rates. There is no simple way to explore these except
through financial modeling. Some alternatives for limiting risks in the learning
phase have been suggested:
• Purchasing a life annuity through an insurance tie-up so that a part of the
mortality risk is transferred to the insurer with the necessary core
competence. Their expertise may also be used to decide on the lump sum
RM loan.
• Based on the U.S experience so far, it seems better for the lender to assume
responsibility for property maintenance/ taxes against deduction from RM
loan limits/ annuity payments.
• Though insurance against default risk is unlikely in India, an RM lender has
to charge an equivalent additional interest spread of 2-2.5%, if not more, as
a default risk premium
• It seems worthwhile to explore and lobby for concessional refinance for RM
loans from agencies like the National Housing Bank and for lower RM
related transaction taxes.
• Given the requirement of property market related expertise at the micro-
level, it might be worthwhile to focus on only one or two cities in the initial
phase.
• There might be a need for tie-ups with agencies for various services-
property valuation, title search, property maintenance and so on.
BENEFITS:
1. Income supplement: Reverse mortgages provide a way for retirees to

supplement their income without having to sell their homes.
2. No repayment required until the borrower moves out or passes away: Unlike
a traditional mortgage, borrowers are not required to make payments on a
reverse mortgage until they move out of the home or pass away.
3. Flexibility: Borrowers can choose to receive payments as a lump sum,

monthly payments, or a line of credit.
ADVANTAGES:
1. No income or credit requirements: Since the loan is secured by the home's

equity, there are no income or credit requirements to qualify for a reverse
mortgage.
2. Tax-free income: The money received from a reverse mortgage is generally

tax-free, which can be an advantage for retirees who are on a fixed income.
3. Protection against foreclosure: Reverse mortgages are non-recourse loans,
which means that the borrower or their heirs will not be responsible for
paying back more than the value of the home if it is sold to repay the loan.
DISADVANTAGES:
1. High fees: Reverse mortgages can come with high fees, including origination
fees, closing costs, and mortgage insurance premiums.
2. Reduced inheritance: The amount of equity in the home that can be passed
down to heirs will be reduced if a reverse mortgage is taken out.
3. Interest accrues over time: Interest on the loan accrues over time, which
means that the amount owed can grow quickly and potentially reduce the
amount of equity in the home.
4. Decreased home equity: Borrowers may find that their equity in the home
decreases significantly over time, which could limit their options for selling
or refinancing the property.
Overall, a reverse mortgage can be a useful tool for retirees looking to supplement
their income, but it's important to carefully consider the potential benefits and
drawbacks before taking out this type of loan.
CHAPTER-2
REVIEW OF LITERATURE
1. According to Matic (2009), a reverse mortgage is a financial instrument
designed to assist seniors to supplement their present income without having
to sell their homes. According to Matic, the rapid growth of the elderly
population is of great interest to both government and financial organizations.
However, he believes that financial institutions should be more informed and
conscious of the demographic trends of the elderly in order to create and
provide the most appropriate financial products to the elderly.
2. Bartel et al. (1980) addressed the significance and necessity of reverse
mortgages. They have outlined two procedures for obtaining a reverse
mortgage. The traditional reverse mortgage method, in which the monthly
payment received accumulates as a lien against the house over time, and the
RAM or Reverse Annuity method, which involves the exclusive purchase of
an annuity with the proceeds of a mortgage loan.
3. Nakajima and Telyukova (2011) in their paper have analyzed reverse
mortgage loans using a quantitative model of life in retirement where elderly
households make decision of consumption, savings, housing, and reverse
mortgages. Their model indicates that under the current environment and
RML terms, reverse mortgages are used by the borrowers to pay primarily for
medical expenses, while allowing them to retain their home.
4. Reed (2009) This paper investigates reverse mortgage perceptions in
Australia, particularly the potential for reverse mortgages to benefit seniors. It
investigates the present reverse mortgage providers and the products they
provide. This paper provides an overview of the Australian reverse mortgage
market, current providers, and how their products differ. It also examines two
recent reports on reverse mortgage perceptions by (a) an industry group
(SEQUAL) and (b) ASIC. A discussion of these findings finds gaps in
understanding reverse mortgage perception and identifies possible future
research areas.
5. According to Rajagopalan (2006), Reverse Mortgage loans are "Rising Debt
instruments" because the lender can never foresee future loan balances at the
time of loan origination. Second, because Reverse Mortgage loans are
nonrecourse, the lending organization cannot pursue the buyer's other
properties if the house valuation falls below the loan amount. Furthermore,
the author claims that among the various risks associated with RM loans,
interest rate risk is significant because it cannot be completely diversifiable
here.
6. Kumar et al. (2007) identify the two most important risks in RM loans from
the lender's perspective: the Crossover and Longevity Risks. The paper
clearly identifies these two risks and recommends methods for banks to
manage them. Finally, they talk about the importance of reverse mortgages in
the Indian industry.
7. Tripathi and Iyer (2009) investigated the characteristics of beneficiaries,
extant regulatory mechanisms, product comparisons, opportunities and
threats, current problems and challenges related to Reverse Mortgage. They
determined that Reverse Mortgage Loan schemes have a high potential
because the demand for RML exists and is growing. Because other social
security systems do not exist, the Indian government is pushing it. RML
appears to benefit all parties, including borrowers, lenders, and the regulator.
(GOI). Because of the size and composition of its people, India could become
a $500 billion market for RML products.
8. Paul and Chakravani (2007) investigated the utility of reverse mortgage
loans in the Indian setting. The author researched the Indian market and
conducted a comparative analysis of the different banks and financial
institutions that provide the loan. The numerous benefits and drawbacks to
both the borrower and the lender have also been thoroughly investigated.
According to the author, at the macro level, the adoption of reverse mortgage
schemes could lessen the burden on the government and employers who pay
pensions, whether in the public or private sector, and thus be an indirect
measure to bring about pension reforms.
9. Dr. V Chandrasekar (2007) discovered, in his study paper titled "Reverse
Mortgage in India: Social Implications," that, despite the potential for reverse
mortgage, there are several issues that may slow its spread as a reliable and
acceptable means of revenue generation. These issues include the complexity
of the reverse mortgage loan, fears of a debt burden, eviction and inability to
leave a legacy behind through a bequest, a lack of a comprehensive database
useful for constructing a suitable environment for reverse mortgage, and so
on.
10. Prof. Sachin Napate (2012) concluded that, while the idea of reverse
mortgage is still in its infancy in India, the introduction of reverse mortgage
products could be a worthwhile experiment given the changing social milieu
in India and the collapse of the joint family structure. Instead of relying on
their children for financial support, this would be a good choice for the
elderly to maintain a graceful lifestyle.
11. Rinku Sanjeev and Anurag Pahuja (2016) Even though the idea of reverse
mortgage is not even a decade old, it is not gaining traction in India. The
research looked into the numerous factors that influence its usage among
potential users. Financial
Independence, Revenue Returns, Risk Involvement, Complex Structure, and
Ownership are the five factors that influence prospective buyers' attitudes
toward reverse mortgages.
12. AARP Public Policy Institute's "A Review of the Literature" (2008):
Based on available research, this thorough review provides a balanced
analysis of the benefits
and risks of reverse mortgages. The review identifies knowledge gaps and
makes suggestions for future research. The authors conclude that reverse
mortgages can be a helpful tool for older adults to access their home equity,
but they warn that caution is required to prevent potential pitfalls.
13. Ruchi Tandon, Ankita Gupta, and Neelam Tandon (2017) published "A
Study of Awareness and Attitude Among the Elderly": The purpose of this
research is to assess the degree of awareness and attitude toward reverse
mortgages among elderly people in India. According to the authors, there is
little awareness of this financial product and many misconceptions about how
it functions. According to the research, there is a need for more education and
awareness about reverse mortgages in India.
14. David E. Lebow and Lynn M. Fisher, "Reverse Mortgage Loans: A
Quantitative Study" (1994) This study, which offers a thorough overview of
the reverse mortgage market, was one of the first to assess the characteristics
of reverse mortgage loans. The reverse mortgage market, albeit tiny at the
time, had a lot of room to grow as the population grew older and homeowners
amassed more wealth in their homes, according to the authors. The study also
looked at the variables affecting reverse mortgage interest rates and costs."
15. Michael D. Hurd, Susann Rohwedder, and Pierre-Carl Michaud's
"Reverse Mortgages and the Liquidity of Home Wealth" (2010) This study
explores the connection between reverse mortgages and older Americans'
housing wealth liquidity. The authors discovered that by enabling
homeowners to access the equity in their homes without having to sell or
move, reverse mortgages can boost the liquidity of housing wealth. The study
looks at how reverse mortgages might affect homeowners' longterm financial
security and contends that they can be a beneficial tool for managing
retirement income mortgages.
16. Stephanie Moulton and Donald Haurin's "Reverse Mortgages: Promise,
Danger, and Practice" (2010) The promise and risk of reverse mortgages are
thoroughly reviewed in this piece, along with best practises for reverse
mortgage lenders. Reverse mortgages, according to the authors, can be a
helpful tool for retirement planning, but they also come with a number of
risks, including high fees, interest rates, and the possibility of foreclosure.
The research offers suggestions for enhancing the market's transparency and
regulation in order to better safeguard consumers.
17. Sandra J. Newman, C. Scott Holupka, and Samantha Friedman's "The
Effect of Reverse Mortgage Borrowing on the Elderly" (2011) The effect of
reverse mortgage borrowing on the financial security of elderly homeowners
is investigated in this research. Reverse mortgage borrowers tend to be more
financially vulnerable and may be at a greater risk of default or foreclosure,
the authors discovered, but they also found that reverse mortgages can be a
valuable source of income for homeowners with few other choices.
According to the research, reverse mortgages should be used with caution,
and policymakers should look into other options for assisting senior
homeowners with their financial needs.
18. In their research, Bardhan & Barua (2003) discovered that home equity
conversion products can be used as a form of welfare for elderly people in
their later years. The market's size can be increased by promoting the legal
and regulatory structure, and government assistance through refinancing can
energise it.
19. "The Reverse Mortgage Market: Issues and Prospects" by Alicia H. Munnell,
Steven A. Sass, and Andrew Eschtruth (2007) This study provides a
comprehensive overview of the reverse mortgage market and discusses the
challenges facing the industry. The authors note that while the reverse
mortgage market has grown significantly in recent years, many consumers
still lack awareness of the product and its potential benefits.
The study also examines the costs of servicing reverse mortgages and the
potential impact of changes in interest rates on borrowers and lenders.
20. "Reverse Mortgages and the Liquidity of Home Equity" by Richard Stanton,
Nancy Wallace, and Michael White (2012) This study explores the role of
reverse mortgages in providing liquidity for older homeowners and examines
the potential impact of reverse mortgages on the housing market. The authors
find that reverse mortgages can be a valuable tool for homeowners looking to
access the equity in their homes without having to sell or move, but they
caution that the high costs of reverse mortgages may make them less
attractive to some borrowers.
21. Daniel B. Weller’s (2017) Reverse Mortgages: How Do They Measure Up
for Retirement Planning?" , this article provides an overview of reverse
mortgages and examines their potential role in retirement planning. The
author finds that reverse mortgages can be a valuable tool for retirees looking
to supplement their retirement income, but they caution that borrowers need
to carefully consider the costs and risks of reverse mortgages before making a
decision.
22. The Federal Reserve Bank of St. Louis published "Reverse Mortgages: A
Closer Look" (2018) This article offers a thorough review of reverse
mortgages and looks at both the advantages and disadvantages of the product.
Reverse mortgages, according to the author, can be a useful tool for
homeowners wishing to access the equity in their houses, but they issue a
warning that prospective borrowers should carefully assess the costs and
hazards of reverse mortgages before making a choice.
23. Shaun Pfeiffer and John Salter's "Reverse Mortgages: A Strategic
Opportunity for Financial Planners" (2018) This article examines how reverse
mortgages might be used in retirement planning and emphasizes the
significance of incorporating reverse mortgages within a more comprehensive
retirement income strategy. Reverse
mortgages, according to the authors, can be a useful instrument for
managing retirement concerns like longevity risk and healthcare costs as
well as supplementing retirement income.
24. According to Venti & Wise (1991), the elderly should only consider a
reverse mortgage as a last resort because of the strong legacy drive. He also
came to the conclusion that reverse mortgages provide a little percentage gain
in income for the typical senior homeowner.
25. According to Ahuja's (2014) study's conclusion, RM may in the future attract
Indian homeowners in need of retirement financing. Bankers are advised to
exercise patience because RM is not a typical financial product to accept, to
actively raise awareness, and to make documentation simple in order to be
more accommodating to senior citizens.
26. According to Sentinel (2014)'s article, a reverse mortgage can be used as a
standby line of credit—a standby cash reserve that would permit the assets to
stay invested and thereby increase in value.More money would be made as a
consequence, which would finance longevity. Using the above approach,
Davison and Turner (2015) have further developed this tactic by
summarising the benefits of using reverse mortgages as a tool for financial
planning.
27. Mitchell and Piggott (2004) conducted research on the significance of
policies in creating a setting that is supportive of the creation, application, and
promotion of reverse mortgages. A mechanism to guarantee that annuity
income flows are tax-free as well as tax accruals for reverse mortgages could
be included in the policies, which could also exempt reverse mortgages from
capital gain tax and transaction tax. They added that the high life expectancy
of the elderly, cheap interest rates, and declining residential housing values
will all have an adverse effect on the market for Reverse Mortgages.
28. Kumar et al. (2008) examined the lender risks associated with reverse
mortgages. They found a few potential target groups that could use reverse
mortgage products in India. Additionally, they recommended conducting a
survey to determine the potential demand for reverse mortgages in metro,
urban, and semi-urban regions across the nation. This would make it easier to
create novel reverse mortgage products that meet consumer demand.
Numerous research investigations have been conducted to determine
29. Pardhasaradhi et al. (2013)'s "Reverse Mortgage-Creating a Regular
Income Stream in Retirement," RML can be used to generate a regular
income stream in retirement. The author points out that the pension system in
India has undergone major changes recently. Pensions' "Defined Benefit
(DB)" scheme has been replaced by the "Defined Contribution" system. (DC).
Pensions are no longer assured and are now dependent on a person's
contributions made while they were employed. An elderly person wants a
reliable source of money in this circumstance. Their house is the most
important thing they own. A reverse mortgage may be utilised to provide
monthly revenue in old age
30. According to Wang, Valdez, and Piggott's article from 2007, the market
for reverse mortgages has become more established as a result of continued
life expectancy increases. The development of this reverse mortgage has,
however, been somewhat constrained by various risks associated with it,
especially the life span risk segment. In this article, they advocate using
securitization to reduce the life-cycle risk to the lender. According to their
findings, mortality financing is a good way to manage life expectancy risk
associated with subprime mortgages. They discovered that a lending
specialist can achieve a long-term assurance with a low premium through the
securitization exchange.
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CHAPTER-3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The aim of project is to study about Reverse Mortgage System and to find out the
perception among the society
OBJECTIVES OF THE STUDY:
1. To find out the awareness of Reverse Mortgage System among the society
2. To study that Reverse Mortgage System is a good option for senior citizens
3. To create a common understanding among the society about Reverse
mortgage system in India
4. To study that Reverse Mortgage system would alleviate the financial stress of
middle class.
RESEARCH DESIGN:
The research design is the conceptual structure with which research is conducted. It
constitutes the blueprint for the collection, measurement, and analysis of data. This
research is exploratory. As such the design includes an outline of what the researcher
will do from writing the objective and its implication to the final analysis of data.
Generally, a design which minimizes bias and maximizes the reliability of the data
collected and analysed is considered a good design.
The study is based on the field survey method. The study is purely empirical and
analytical which is supported by only primary data. In this research, there are two
variables consisting of one independent variable and two dependent variables. The
independent variable are Age, gender, education, marital status, living arrangement,
child status, health, region, life expectancy, and awareness of Reverse Mortgage and
while the dependent variables are whether the respondent is willing to use reverse
mortgage in later life..
RESEARCH TOOL:
The research tool used for this study is questionnaire
SAMPLE :
The sampling unit for this study are youngsters who met the two criteria :
(a) people aged 18 years or above, and (b) elderly who possessed home ownership.
To gauze the willingness of elderly for RM in a county like India, which is a growing
pillar of urbanization and modernization along with strong traditional value system is
complex. Thus, it was justified collecting sample from both sides. For proper
representation of elderly Indians, the sample was taken from both areas : metro as
well as non metro
SAMPLING TECHNIQUE:
Due to non availability of data composite of population characteristics and home

ownership, probability sampling techniques cannot be used. To accomplish the
objective of the current study, framing of sample was done by combining purposive
and snowball sampling methods, which are non probability sampling techniques.
SAMPLE SIZE :
A total of 150 respondents were visited between February 2023 - March 2023, but
we received a total of 110 responses, having a response rate of 69.5% (which is quite
moderate in primary data research) which were used to solve the research question.
The number of respondents from Chennai was 67
METHOD OF DATA COLLECTION:
Data for this research were collected through a self structured schedule. As
respondents of the study were elderly people and concept of RM is not popular in
India ; hence, to eliminate the chances of error and to add more accuracy, data were
collected personally through face to face interactions by us.
(ii) Dependent Variable : The DV of the current study is whether the respondent
is willing to use reverse mortgage in later life. The willingness to use RM is coded
binary, 1 = willing to use RM or 0 = not willing to use RM.
(iii) Independent Variables : The current study, in order to accomplish research

objectives, includes a number of demographic determinants as independent variables.
Age, gender, education, marital status, living arrangement, child status, health,
region, life expectancy, and awareness of RM are considered as independent
variables.
PERIOD OF STUDY:
The study was conducted during February 2023 to March 2023.
LIMITATIONS OF THE STUDY:
The study of awareness of Reverse Mortgage System in India suffer from the
following limitations-
• The current study was principally constrained by its small sample size, which
was 110 individuals. • Only certain regions of India were used for the study . So, the
study's findings could or might not apply to other regions of India.
• The study's use of solely questionnaires to gather the data was another
drawback. A potential upgrade would have been to speak with some people who live
across from the research area to learn more about their degree of Reverse Mortgage
knowledge. This approach might have supplied crucial qualitative information and
provided deeper understanding of the attitudes and beliefs of the respondents.
• We discovered through this survey that individuals do not want to reveal

personal information about their income levels. One of the study's weaknesses could
potentially be attributed to these response biases.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATIONS
Age group 18-24 25-34 35-44 45-54 Above 55
No of respondents 102 4 1 3 0
4.1 AGE:
TABLE 4.1
FIGURE 4.1
AGE
1%
3%
3%
18-24
25-34
35-44
45-55
Above 55
93%
INTERPRETATION
Out of 110 respondents, It was observed that 92.72% of the population belongs to the
age group of 18-24, 0.03% of the respondents belongs to the age 25-34, 0.009% of
the respondents belongs to the age group of 35-44, 2.7% of the population belongs to
the age group of 45-54 and there was no respondents above the age of 55
INFERENCE:
The above table shows that the majority of the respondents (92.72%) belongs to the
category of 18-24 years. Secondly age group of 25-34 has been responded
4.2 GENDER:
TABLE 4.2
Gender Male Female others Prefer not to say
No of respondents 70 39 0 1
FIGURE 4.2
GENDER
0% 1%
35% Male
Female
Others
Prefer not to say
64%
INTERPRETATION
Out of 110 respondents, It was observed that 63.6% of the respondents belong to
Male, 35.4% of the respondents belongs to the Female, 0.9% didn’t prefer to say.
INFERENCE
The above table shows that the majority of the respondents were Male(63.6%)
followed by the female section.
4.3 WHAT IS YOUR HIGHES LEVEL OF EDUCATION?
TABLE 4.3
Highest Level of High school or Some college or Bachelors Master’s Degree
Education Equivalent Trade school Degree
No of 30 25 53 2
Respondents
FIGURE 4.3
Level Of Education
2%
27%
High School
Some college or Trade school
48% Bachelors Degree
Masters Degree
23%
INTERPRETATION
27.27% of the respondents have high school or equivalent as their highest level of
education, 22.72% have some college or trade school as their highest level of
education, meanwhile 48.18% have bachelors and 1.81% have masters degree as
their highest level of education.
INFERENCE
The above table shows that majority of respondents have bachelors degree as their
highest level of education followed by High School or Equivalent
Income Below 20000-40000 40000-60000 60000-80000 Above
20000 80000
No of 86 11 6 1 6
Respondents
4.4 MONTHLY INCOME
TABLE 4.4
FIGURE 4.4
Monthly Income
1%
5%
6%
10% Below 20000

20000-40000
40000-60000
60000-80000
Above 80000
78%
INTERPRETATION
From the above figure,78.18% of the respondents earn below 20000 monthly, 10%
earn between 20000-40000,5,45% earn between 40000-60000, 0.90% earn between
60000-80000 and 5.45% of the respondents earn more than 80000 as monthly
income.
INFERENCE
Majority of the population (78.18%) earn below 20000, followed by 10% earning
between 20000-40000.
4.5 STATE:
State Kerala Tamil Nadu Gujarat Maharashtra Rajasthan Uttar

Pradesh
No Of 46 56 4 1 2 1
Respondents
TABLE 4.5
FIGURE 4,5
State
2%
1% 2%
4%
Kerala
TamilNadu
41%
Gujarat
Maharastra
Rajasthan
UttarPradesh
50%
INTERPRETATION
More than 40% of the respondents are from Kerala, 50.90% of them were from Tamil
Nadu, 3.63% of them were from Gujarat, 0.90% from both Maharashtra and Uttar
Pradesh and 1.81% of them were from Rajasthan
INFERENCE
Majority of them were from Tamil Nadu, followed by 41.81% of respondents from
Kerala
Response YES NO
No. Of Respondents 67 43
4.6 HAVE YOU HEARD OF THE TERM “REVERSE MORTGAGE” BEFORE
TABLE 4.6
INTERPRETATION
About 60.90% of the respondents haven’t heard of the term “REVERSE
MORTGAGE” and 39.09% of them haven’t heard of the term.
INFERENCE
Majority of the respondents have heard of the term “REVERSE MORTAGE”

4.7 ARE YOU AWARE OF THE REVERSE MORTGAGE SYSTEM IN INDIA
TABLE 4.7
Responses YES NO
No of Responses 57 53
INTERPRETATION
About 51.81% of the respondents did knew about the Reverse Mortgage System in
India and 48.18% didn’t knew about it.
INFERENCE
Majority of the respondents did knew about the REVERSE MORTGAGE SYSTEM
in INDIA
4.8 HAVE YOU OR ANYONE IN YOUR FAMILY EVER CONSIDERED

TAKING A REVERSE MORTAGE LOAN?
TABLE 4.8
Responses YES NO
No of Responses 18 92
INTERPRETATION
About 16.36% of the respondents of their families considered taking Reverse

Mortgage loan whereas 83.63% didn’t.
INFERENCE
Majority of the respondents haven’t even considered of taking Reverse Mortgage

loan.
4.9 WHAT ARE YOUR PRIMARY CONCERNS ABOUT REVERSE
MORTAGE SYSTEM
TABLE 4.9
Responses LACK OF HIGH COMPLEX I AM NOT
AWARENESS INTEREST ELIGIBILITY AWARE OF
RATES CRITERIA THIS
SYSTEM
No of 74 15 17 4
Respondents
INTERPRETATION
From the table above 67.27% responded Lack of Awareness,13.63% responded high
interest rates,15.45% responded Complex Eligibility criteria,3.63% weren’t aware of
this system
INFERENCE
Majority of the respondents responded Lack of Awareness, followed by 15.45%

responded Complex Eligibility Criteria
4.10 DO YOU THINK THE REVERSE MORTGAGE SYSTEM IN INDIA IS A
GOOD OPTION FOR MIDDLE CLASS PEOPLE?
TABLE 4.10
Response AGREE STRONGLY NEUTRAL DISAGREE
AGREE
No. of 28 9 64 9
Respondents
INTERPRETATION
25.45% of the respondents agreed to the question, 8.18% strongly agreed to it,
58.18% of the total respondents responded to the question Neutral, whereas 8.18% of
them disagreed to it .
INFERENCE
Majority of the respondents responded Neutral to the question followed by 25.45%

agreeing to it.
4.11 DO YOU THINK THE INTEREST RATES CHARGED ON REVERSE
MORTGAGE LOANS ARE HIGH IN INDIA?
TABLE 4.11
Response AGREE STRONGLY NEUTRAL DISAGREE
AGREE
No of 32 6 64 8
Respondents
INTERPRETATION
From the above table 29.09% agreed to the question whereas 5.45% strongly agreed
to it.58.18% responded Neutral and 7.2% disagreed to it
INFERENCE

agreed to it.
Response Simple Complex Confusing Not
Confusing
No of 31 11 59 6
Respondent
s
4.12 WHAT DO YOU THINK ABOUT THE CURRENT ELIGIBILITY
CRITERIA FOR AVAILING REVERSE MORTGAGE LOAN IN INDIA?
TABLE 4.12
INTERPRETATION
Out of the 110 respondents, 28.18% responded Simple, 10% responded Complex ,
53.63% responded Confusing and the rest 5.45% responded Not Confusing
INFERENCE
Majority of the respondents responded Confusing followed by 28.18% responded

Simple
4.13 HAVE YOU EVER FACED ANY DIFFICULTIES GATHERING
INFORMATION ABOUT REVERSE MORTGAGE LOAN IN INDIA?
TABLE 4.13
Response Yes, I have faced I am not familiar with No, I didn’t face
difficulties in finding Reverse Mortgage any difficulties
the information on loans in India & gathering the
reverse mortgage therefore cannot information on
loans in India answer the question Reverse mortgage
loans in India
No of Responses 19 48 43
INTERPRETATION
From the above table 17.27% of the respondents responded that they have faced
difficulties while gathering the information whereas 39.09% didn’t find any
difficulties. 43.63% of them responded that they were not familiar with the issue ,so
that they cannot answer for the same.
INFERENCE
Majority of the respondents were not familiar with Reverse mortgage loans in India
so they weren’t able to answer the same.
Response A loan that home A grant program A tax credit that
owners aged 62 or that provides homeowners can
older can use to financial claim based on
access the equity in assistance to the value of their
their home homeowners home
No of Respondents 57 25 28
4.14 WHAT IS REVERSE MORTGAGE & HOW DOES IT WORK
TABLE 4.14
INTERPRETATION
From the above table, 51.81% of the respondents responded that it is a loan that home
owners aged 62 or older can use to access the equity in their homes, 22.72%
responded that it is a grant program that provides financial assistance to homeowners,
25.45% responded that it is a tax credit that homeowners can claim based on the
value of their home.
INFERENCE
Majority of the respondents responded that that it is a loan that home owners aged 62
or older can use to access the equity in their homes
4.15 WHO IS ELIGIBLE FOR REVERSE MORTGAGE?

TABLE 4.15
Response Homeowners Homeowners of Homeowner of Homeowner of
55 or older 60 or older 65 or older any age
No of 19 56 19 16
Respondent
s
INTERPRETATION
17.27% of the respondents responded for homeowners aged 55 or above, 50.09% of

them responded for homeowners aged 60 or older, 17.27% of them responded for
homeowners aged above 65 or older and 14.54% responded for homeowners of any
age
INFERENCE
Majority of the respondents responded that homeowners above 60 or older followed
by homeowners aged 55 or above and 65 or above
4.16 HOW DO YOU FIND A REPUTABLE LENDER FOR A REVERSE
MORTGAGE?
TABLE 4.16
Response Work with a Check with the Do your own All of the
trusted National Reverse research & above
financial mortgage Lenders compare
advisor Association(NRMLA) lenders
No of 34 31 14 31
respondents
INTERPRETATION
From the following table it is found that 30.90% of the respondents responded to
work with a trusted financial advisor, 28.18% of the respondents responded to check
with National Reverse Mortgage Lenders Association, 12.72% suggested to do their
own research and the rest suggested All of the Above (28.18) .
INFERENCE
Majority of the population decided to work with a trusted financial advisor, followed
by checking with NRMLA.
4.17 WOULD YOU RECOMMEND THE REVERSE MORTGAGE SYSTEM
IN INDIA TO SOMEONE IN NEED OF FINANCIAL ASSISSTANCE?
TABLE 4.17
Responses Agree Strongly Agree Neutral Disagree
No of 37 14 56 12
respondents
INTERPRETATION
33.63% of the respondents agreed to the question and 12.72% strongly agreed to
it.50.09% of the total 110 respondents responded neutral and the rest disagreed to it
(10.90%)
INFERENCE
From 110 respondents, majority of the respondents responded to Neutral followed by

33.63% agreeing to it.
4.18 DO YOU THINK THE GOVERNMENT SHOULD TAKE MORE STEPS
TO PROMOTE REVERSE MORTGAGE SYSTEM AMONG MIDDLE
CLASS?
TABLE 4.18
No of 37 11 57 5
Respondents
INTERPRETATION
33.63% of the total 110 Agreed to the question while 10% strongly agreed to
it.51.81% responded Neutral to the question and 4.54 % disagreed to it.
INFERENCE
From the table above, majority of the respondents responded Neutral followed by
33.63% agreeing to it.
4.19 HAVE YOU EVER TAKEN ANY KIND OF LOAN FROM A FINANCIAL
INSTITUTION BEFORE?
TABLE 4.19
Responses YES NO
No. of respondents 42 68
INTERPRETATION
38.18% of the total 110 respondents have taken some kind loan from financial
institutions and the rest 61.81% respondents haven’t taken loans.
INFERENCE
Majority of the respondents have responded Yes

4.20 WHAT IS YOUR UNDERSTANDING OF HOW A REVERSE
MORTGAGE WORKS?
TABLE 4.20
Responses I have a clear I have some I have no
understanding understanding but understanding
need more
information
No. of 13 64 33
Respondents
INTERPRETATION
11.81% of them have a clear understanding of how an reverse mortgage system

works ,58.18% of them have some understanding but need more information , 30%of
the respondents have no understanding .
INFERENCE
Majority of the respondents have some understanding but need more information
(58.18%) followed by 30% have no understanding
4. 21 DO YOU THINK THE REVERSE MORTAGE SYSTEM IN INDIA IS
WELL REGULATED?
TABLE 4.21
No. of 17 9 67 17
Respondents
INTERPRETATION
Out of 110, 15.45% agreed that reverse mortgage system in India is well regulated
while 8.18% strongly agreed, 60.90% of the respondents responded to Neutral and
15.45% disagreed it.
INFERENCE
Majority of the respondents responded Neutral followed by 15.45% disagreed to it.

4.22 HAVE YOU EVER DISCUSSED THE REVERSE MORTGAGE SYSTEM
WITH A FINANCIAL ADVISOR?
TABLE 4.22
Responses YES NO
No. of Respondents 37 73
INTERPRETATION
33.63% of the total respondents have discussed the reverse mortgage system with a
financial advisor and the remaining 66.36% responded No.
INFERENCE
Majority of the respondents have responded No

4.23 HOW IMPORTANT DO YOU THINK IT IS FOR MIDDLE CLASS
PEOPLE TO HAVE ACCESS TO THE REVERSE MORTGAGE SYSTEM IN
INDIA?
TABLE 4.23
Responses Somewhat Very Important Not Important
Important
No of Respondents 77 19 14
INTERPRETATION
70% of the total 110 respondents responded that it is ‘Somewhat Important’, 17.27%
responded that it is ‘Very Important’ and 12.72% responded that its ‘Not important’.
INFERENCE
From the table above, majority of them responded that it is ‘Somewhat important’
followed by responding that it is not important.
4.24 DO YOU THINK THE REVERSE MORTGAGE SYSTEM IN INDIA HAS
THE POTENTIAL TO ALLEVIATE FINANCIAL STRESS AMONG THE
MIDDLE CLASS PEOPLE?
TABLE 4.24
No. of 23 14 64 9
Respondents
INTERPRETATION
20.90% of the total 110 respondents agreed that reverse mortgage system has the
potential to alleviate financial stress among the middle class people, 12.72% strongly
agreed to the question, 58.18% responded neutral and 8.18% disagreed to it.
INFERENCE
Majority of the respondents responded Neutral followed by 20.90% of them agreeing

to it.
4.25 WHAT FACTORS WOULD MAKE YOU CONSIDER TAKING A
REVERSE MORTAGE LOAN?
TABLE 4.25
Responses Low interest Simple Need for Other
rates Eligibility Additional
Criteria Income
No. of 56 23 25 6
Respondents
INTERPRETATION
50.90% responded Low Interest Rates, 20.90% responded to ‘Simple eligibility
Criteria’, 22.72% responded to ‘Need for Additional Income’ and the rest of the
respondents responded to the option ‘Others’.
INFERENCE
Majority of the respondents have responded to ‘Low interest rates’, followed by
22.72% responded to ‘Need for additional income’.
4. 26 DO YOU THINK THE REVERSE MORTGAGE IN INDIA IS GOOD
OPTION FOR SENIOR CITIZENS?
TABLE 4.26
Responses Agree Strongly agree Neutral Disagree
No of 37 4 58 11
Respondents
INTERPRETATION
Out of 110, 33.63% agreed to the question while 3.63% strongly agreed. 52.72%
responded Neutral and 10% disagreed to it
INFERENCE
Majority of the respondents responded Neutral followed by 33.63 % agreeing to it.

4.27 HOW LIKELY ARE YOU TO RECOMMEND THE REVERSE
MORTGAGE SYSTEM IN INDIA TO A FRIEND OR FAMILY MEMBERS?
TABLE 4.27
Responses Agree Strongly agree Neutral Disagree
No of 31 8 60 11
Respondents
INTERPRETATION
28.18% of the respondents agreed to the question, 7.27% strongly agreed to it.
54.54% of the total respondents responded to the question Neutral whereas 10% of
them disagreed to it
INFERENCE

agreed to it.
4.28 WHAT CHANGES, IF ANY, WOULD YOU LIKE TO SEE IN THE
REVERSE MORTGAGE SYSTEM IN INDIA?
TABLE 4.28
Responses Lower Interest Simple More other
Rates Eligibility Awareness &
Criteria Promotion
No of 25 42 35 8
Respondents
INTERPRETATION
22.72% responded ‘Low Interest Rates’, 38.18% responded ‘Simple eligibility

Criteria’, 31.81% responded ‘More Awareness & Promotion’ and the rest responded
to the option ‘Other’.
INFERENCE
Majority of the respondents responded ‘Simple Eligibility Criteria’ followed by

31.81% responded on ‘More awareness & promotion’.
CHAPTER 5
FINDINGS & SUGGESTIONS

5.1 FINDINGS
• Out of 110 respondents 92.72% of the respondents belong to 18-24 years.
• Out of 110 respondents, 63.6% of the respondents are male and 35.4% belong to
female
• From the study, it can be seen that 78.18% earns a monthly income of below Rs
20,000
• This research concluded that 110 respondents highest level of education is

Bachelor’s degree
• Majority of the population (60.90%) are fully aware about Reverse Mortgage
System and 39.09% are not aware about it.
• From the study it is known that 67.27% of people have of awareness, 13.63%
responded high interest rates,15.45% responded Complex Eligibility
criteria,3.63% weren’t aware of this system
• From the study it has been noted that they were not familiar with reverse
mortgage loans in India.
• It has been observed from the study that homeowners aged 60 or older are
eligible for Reverse Mortgage loans
• From the research we can conclude that about 51.82% responded that Reverse
Mortgage is a loan that homeowners aged 62 or older can use to access the equity
in their home
• From the response for 110 people, we observe that 30.90% would work with a
financial advisor
• From the research, it has been observed that 33.63% of the total 110 responded
Neutral on recommending Reverse Mortgage to someone in need of financial
assistance
• This study concludes that 33.63% of the total 110 respondents agree to the fact
that government should take steps to promote reverse mortgage system in India.
• It can be observed that 61.81% haven’t taken any kind of loan from a financial
institution before.
• From the study it can be noted that 58.18% have some understanding but they
needed more information about how Reverse Mortgage works
• It has been observed that 60.90% of the total 110 responded Neutral to the
reverse mortgage in India is well regulated
• It has been noted that 70% responded that it is somewhat important for
middleclass people to have access to reverse mortgage system in India.
• It is known that 58.18% of the population are Neutral to reverse mortgage system
has the potential to alleviate the financial stress among middle class.
• The study concludes that 52.72% are neutral to Reverse Mortgage system is good
for Senior citizens.
• From the study it is observed that 54.54% are Neutral to suggesting Reverse
Mortgage System in India to a Friend or Family member
5.2 SUGGESTIONS
• Simplify the application process: Make the application process for reverse
mortgages more accessible and straightforward, so that more elderly
homeowners can benefit from this product.
• Educate the public: Educate the public on the advantages and disadvantages
of reverse mortgages so that they can make informed decisions.
• Increase transparency: Improve transparency and disclosure requirements to

ensure that elderly homeowners fully understand the terms of the reverse
mortgage.
• Enhance consumer protection: Increase consumer protection by setting

stricter standards for lenders and servicers, and by monitoring compliance
with regulations.
• Introduce more flexibility: Allow for more flexibility in the disbursement of
funds, such as offering lump-sum payments or allowing borrowers to choose
the payment schedule that best suits their needs.
• Encourage competition: Encourage more competition among lenders to

promote innovation and better pricing for consumers.
CHAPTER-6
CONCLUSION
CONCLUSION
Based on the findings of this research on the Reverse Mortgage System in India, it
can be concluded that there is a significant lack of awareness about this system
among the population. Despite this, there is a growing interest in it, especially among
senior citizens and the middle class. The majority of the respondents were neutral
about the potential benefits and drawbacks of this system, but there is an apparent
need for more information and education about it.
The study indicates that a large percentage of the respondents have a limited monthly
income and lack financial literacy. However, it is encouraging to note that a
significant number of them are open to working with a financial advisor and are
receptive to the government promoting this system. Overall, the study highlights the
need for more outreach, education, and awareness programs to make the Reverse
Mortgage System more accessible and beneficial to the people in need.
BIBILIOGRAPHY
WEBSITES
• https://www.researchgate.net/publication/
307375120_Reverse_Mortgage_An_Empiri cal_Study_in_Indian_Perspective
• https://www.newretirement.com/retirement/reverse-mortgage
• https://www.scribd.com/document/117752129/Reverse-Mortgage-in-India
• https://journals.sagepub.com/doi/full/10.1177/2277977920958668 •
https://www.mlfoundation.in/media/uploads/article.in
JOURNALS
• An Analytical Study of Determinants of Reverse Mortgage in NCR -

https://jkbschool.org/wp-content/themes/jkbs/images/Analytical-v-2.pdf
• Reverse Mortgage- Growing Market in India By Singhal, Saket & Jain, Ami -
http://115.112.202.200/downloads/gcadata/10thGCA/Reverse
%20Mortgage_Saket%2 0Singhal.pdf
• http://115.112.202.200/downloads/gcadata/10thGCA/Reverse
%20Mortgage_Saket%2 0Singhal.pdf
BOOKS
• Understanding Reverse - 2023: Simplifying the Reverse Mortgage.

• The Financial System in India Markets, Instruments, Institutions, Services
and Regulations - By Subhash Chandra Das
• Reverse Mortgages-How to Use Reverse Mortgages to Secure Your

Retirement By Wade Donald Pfau · 2018
ANNEXURE
QUESTIONNARE
1. Name
2. Gender
a) Male
b) Female
c) Prefer not to say
3. Age
a) 18-24
b) 25-34
c) 35-44
d) 45-54
e) 55 or older
4. What is your highest level of education completed?

a) High school or equivalent
b) Some college or trade school
c) Bachelor's degree
d) Master's degree or higher
5. Monthly Income
a) Below 20000
b) 40000 – 60000
c) 60000 – 80000
d) 80000 or above
6. State
7. Have you heard of the term "reverse mortgage" before?

a) Yes
b) No
8. Are you aware of the reverse mortgage system in India?

a) Yes
b) No
9. Have you or anyone in your family ever considered taking a reverse mortgage
loan?
a) Yes
b) No
10. What are your primary concerns about the reverse mortgage system?
a) High Interest Rates
b) Lack of awareness
c) Complex eligibility criteria
11. Do you think the reverse mortgage system in India is a good option for
middle-class people?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
12. Do you think the interest rates charged on reverse mortgage loans are high in
India?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
13. What do you think about the current eligibility criteria for availing reverse
mortgage loans in India?
a) Complex
b) Simple
c) Confusing
d) Not confusing
13. Have you ever faced any difficulties in gathering information about reverse
mortgage loans in India?
a) Yes, I faced difficulties in finding information on reverse mortgage loans
in India.
b) No, I did not face any difficulties in finding information on reverse
mortgage loans in India.
c) I am not familiar with reverse mortgage loans in India and therefore
cannot answer this question.
14. What is a reverse mortgage and how does it work?

a) A loan that homeowners aged 62 or older can use to access the equity in
their home.
b) A type of savings account that pays out monthly income to homeowners.
c) A tax credit that homeowners can claim based on the value of their home.
d) A grant program that provides financial assistance to homeowners.
15. Who is eligible for a reverse mortgage?

a) Homeowners aged 55 or older
b) Homeowners aged 60 or older
c) Homeowners aged 65 or older
d) Homeowners of any age
16. How do you find a reputable lender for a reverse mortgage?

a) Check with the National Reverse Mortgage Lenders Association
(NRMLA).
b) Work with a trusted financial advisor.
c) Do your own research and compare lenders.
d) All of the above
17. Would you recommend the reverse mortgage system in India to someone in
need of financial assistance?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
18. Do you think the government should take more steps to promote the reverse
mortgage system in India among middle-class people?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
19. Have you ever taken any kind of loan from a financial institution before?
a) Yes
b) No
20. What is your understanding of how a reverse mortgage works?

a) I have a clear understanding
b) I have some understanding but need more information
c) I have no understanding
21. Do you think the reverse mortgage system in India is well-regulated?

a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
22. Have you ever discussed the reverse mortgage system with a financial
advisor?
a) Yes
b) No
23. How important do you think it is for middle-class people to have access to the
reverse mortgage system in India?
a) Very important
b) Somewhat Important
c) Not Important
24. Do you think the reverse mortgage system in India has the potential to
alleviate financial stress among middle-class people?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
25. What factors would make you consider taking a reverse mortgage loan?
a) Need for Additional Income
b) Low interest rates
c) Simple eligibility criteria
d) Others (please specify)
26. Do you think the reverse mortgage system in India is a good option for senior
citizens?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
27. How likely are you to recommend the reverse mortgage system in India to a
friend or family member?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
28. What changes, if any, would you like to see in the reverse mortgage system in
India?
a) Lower Interest Rates
b) Simpler eligibility criteria
c) More awareness and promotion
d) Other(please specify)
INTERNSHIP-REPORT
COMPANY PROFILE
SSRM & ASSOCIATES a professionally managed Chartered Accountancy firm

operating from Cochin, Kerala. The firm has been established as a partnership firm
duly registered with Institute of Chartered Accountants of India. The firm is led by
chartered accountants who have experience in the areas of accounting, auditing,
taxation, management consulting, system audit and support, SAP/ERP consultation,
Expatriate taxation, Transfer Pricing etc.
The partners are supported by a dedicated talent team involves young chartered
accountant aspirants, professional staff, Articled Assistants. We also have a
competent pool of professionals like Company Secretaries, IT Professionals on
assignment basis. Our team of highly skilled and motivated personnel have gained in-
depth experience and technology leverage to provide cutting edge solutions to our
clients. The Main customers of the SSRM &Associates limited as follows:
• The Choice School, Kochi
• Tea Garden, Munnar
• Calvins design, Kochi
• Edging private limited, Kochi
• Surya Enterprises, Kochi
The firm is committed to a policy of providing direct accessibility and service at

partner level and maintaining strong working and personal relationships with its
clients. The firm's view on its role in the profession is that: we are here to provide a
comprehensive service to clients such that they can be confident we will protect their
interests. The clients will trust them and feel they receive value and quality.
LEARNING EXPERIENCES
Week 1:
During the first week, as an intern in an auditing firm in Kochi, you will likely be
introduced to the office environment, the company culture, and the team you will be
working with. Your mentor or supervisor will likely provide you with an overview of
the company's policies, procedures, and objectives. Additionally, they will likely
brief you on the basics of auditing, such as the types of audits, the audit process, and
the importance of independence and objectivity. During this week, you may be
assigned simple tasks, such as organizing files or updating spreadsheets, to get you
familiarized with the company's work and processes.
Week 2:
In the second week, you will likely start getting involved in more complex tasks. You
may be assigned to help with fieldwork, such as collecting and organizing evidence
or conducting basic tests of controls. During this week, you will also have the
opportunity to shadow experienced auditors and learn from them. You may attend
meetings with clients, assist with report writing, or observe the review process. It's
crucial to pay attention to details, ask questions, and take notes during this phase to
get the most out of the learning experience.
Week 3:
In the third week, you will likely have more hands-on experience with client work.
You may be assigned to work on specific areas of an audit, such as revenue,
expenses, or fixed assets. During this week, you will likely have more interactions
with clients and have the opportunity to demonstrate your analytical skills. You may
also be required to write audit memos or reports, which will help you to refine your
writing and communication skills. You should be receptive to feedback from your
supervisor and strive to improve your work.
Week 4:
During the final week, you will likely be given more responsibilities and take on
more significant roles in the audit process. You may be assigned to lead specific
areas of the audit, supervise junior staff, or assist with the finalization of audit
reports. During this week, you should be confident in your abilities and communicate
effectively with your team members.
You should also take the time to reflect on your learning experience and think about
how you can apply the knowledge and skills you gained in your future career.
Additionally, it's an excellent opportunity to network with your colleagues and
supervisors to learn more about career opportunities in the auditing profession.
SELF APPRISAL FORM
Student Name: Pius Varghese Scaria

ID: 2001721100055
Class: III Bcom Professional Accounting
Name and Address of the Interning Company:
SSRM & ASSOCIATES
Arikupurath Building, Makiliambalam Road, Irumbanam,
Thrippunithura, Kochi, Kerala, Pin 682309
Brief description of Duties and Projects:
The intern was given more duties as the internship went on, including writing audit
reports and supporting documentation, examining financial accounts, and helping
with internal audit procedures. The intern also had the chance to study data, attend
meetings, interview clients, and report their findings to the group. The intern also
participated in a collaborative effort to create a presentation for a client while
working on more challenging chores including evaluating financial accounts and
looking for inconsistencies. The intern gained useful abilities during the internship,
including time management, communication, and problem-solving, and was
motivated to pursue a career in auditing.
In what ways did your B.Com program prepare you for this work experience?
The fundamental abilities and information I acquired while pursuing my B.Com,
including Tally, accounting vouchers, GST, and GSTR reconciliation, were crucial
to successfully performing my internship assignments.
What did you learn during the internship experience?
The intern can learn about the auditing process, including how to prepare audit
reports, review financial statements, and conduct internal audits. They can also
develop important skills such as time management, communication, and problem-
solving. Additionally, the intern can learn about the company's culture, values, and
policies. They can gain valuable practical experience, build a network of
professional contacts, and explore potential career paths in auditing.
What did you enjoy most about the internship (from both the personal and
professional perspectives)?
Interns may appreciate the chance to take part in social gatherings and team-building
exercises, which can help them get to know their co-workers and promote
camaraderie. They could also like the freedom and flexibility that some employers
offer, enabling them to take responsibility for their job and contribute significantly to
the team. Also, interns can find the internship to be a worthwhile educational
opportunity that advances their knowledge of the auditing industry and their own
professional objectives. They might also value the chance to learn new software and
technologies, which might improve their skill set and increase their marketability in
the labour market.
What did you find most difficult about the experience (from both the personal
and
professional perspectives)?
Interns may find it challenging to balance their work responsibilities with their
personal life, and may feel overwhelmed by the volume of work and the tight
deadlines. Additionally, interns may find it difficult to adapt to the company's
culture and communication style, especially if they come from a different
background or work experience. From a professional perspective, interns may find it
challenging to learn and master new software and technology tools used in the
auditing industry. They may also find it difficult to receive constructive feedback on
their work and implement it effectively. From a personal perspective, interns may
find it challenging to navigate the social and cultural aspects of the internship,
especially if they are new to the city or industry.
Would you pursue a permanent position with this firm? Why?
The intern wants to pursue higher education and has no intention of working for the
company full-time. If they decide to alter their intentions, the intern was lucky to
obtain an invitation from an auditor to complete an articleship in their audit firm.
Overall Comments and Recommendations
The intern's internship at this company was a terrific opportunity for learning all
around. The intern was able to make the connection between the practical knowledge
and its real-world applications thanks to the academic experience she had throughout
graduation. This circumstance gave the intern a realisation of how businesses
function in the real world and how the outside world looks.
Signatures:
Student: Date
Faculty Internship Advisor: Date

CONCLUSION
Ultimately, the intern's experience working in auditing has helped him hone his
auditing skills. He gained a better understanding of the audit procedure—including
audit planning, implementation, and reporting—throughout his internship. He had
the chance to hone his analytical, communication, and critical thinking abilities
while working on actual assessment processes.
In conclusion, the intern's four weeks at the audit business were a terrific learning
opportunity that assisted in the development of practical accounting abilities. The
internship gave the intern practical exposure using Tally Prime and GST.
The intern had previously only learnt theoretically about compliance and other
accounting duties from his academic studies. The intern gained insight into the value
of accuracy and precision through the tasks given, as well as the relevance of
following rules. The intern's understanding of actual situations and accounting firm
procedures was aided by the experience. Overall, the internship was a worthwhile
educational experience that would surely benefit the intern's future career.

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A STUDY ON THE REVERSE MORTGAGE SYSTEM IN CHENNAI

Submitted in partial fulfillment of the requirements

for the award of the degree of

Name: PIUS VARGHESE SCARIA

(Register No: 2001721100055)

DEPARTMENT OF COMMERCE (SHIFT - II)

MADRAS CHRISTIAN COLLEGE (AUTONOMOUS)

TAMBARAM, CHENNAI – 600 059

MORTGAGE SYSTEM IN CHENNAI” is a record of personal work done by Mr.

PIUS VARGHESE SCARIA, a student of Bachelor of Commerce (Shift – II),

work of the candidate under my supervision and guidance.

Date: SIGNATURE OF GUIDE

Date: SIGNATURE OF EXTERNAL EXAMINER

I first and foremost wish to express my profound thanks to our honorable

Principal DR. P. WILSON for providing me an opportunity to study in this

I then wish to extend my sincere thanks to the respectable Head of the

Department DR.NIRMALA MOHAN as her constant encouragement proved as a

source of unparalleled inspiration.

I express deep gratitude to my Guide Mr. JOSHUA W for the proper

have been completed.

PIUS VARGHESE SCARIA

AMONG PEOPLE IN CHENNAI” is an original work done by me in partial

fulfilment of the requirement for the awarding of the degree of Bachelor of

Commerce under the guidance of Mr. JOSHUA W, Department of Commerce (Shift

been submitted elsewhere for the award of any degree.

PIUS VARGHESE SCARIA

CHAPTER TITLE PAGE NO

2 Review of Litersture 23-31

3 Research Methodology 32-33

4 Data Analysis and Interpretations 34-61

5 Findings and Suggestions 62-63

S.NO TITLE PAGE NO

1 Profile of the company 97-98

QUESTION NO TITLE PAGE NO

4.1 Table showing the age of the respondents

4.1 Table showing the gender of the respondent

4.3 Table showing the highest level of Education

4,4 Table showing the Monthly Income

4.5 Table showing the State

4.6 Table showing that the respondents have heard of

CHART NO. TITLE PAGE NO.

4.1 Chart showing the Age of the respondents

4.2 Chart showing the Gender of the respondents

4.4 Chart showing the Monthly Income earned by the

4.5 Chart showing the State the e Respondents are

A Reverse Mortgage is a form of the financial arrangement between an ‘Equity rich-

In 2007, the then-finance minister P. Chidambaram launched RM in the Indian

INDIAN MARKET POTENTIAL

India-specific Characteristics of Relevance to Reverse Mortgage System

a. Benami holdings/ ‘Irrevocable power of attorney

• Absence of competitive suppliers for immediate life annuity products. This,

• India specific legal and taxation issues

a. License/ Permission required under insurance/ banking regulation for

Some demographic projections for India indicate that

SOURCES OF INCOME SUPPORT FOR THE ELDERLY IN INDIA

As per a survey of the National Sample Survey Organization (NSSO) in 1994,

However, the following aspects are worrisome: