Failing this, the property is transferred to the financial institution. If there is any surplus after sale of the property mortgaged, after adjustment of loan and interest amount, the refund will be made to the legal heirs.

Reverse mortgage also allows for revaluation of the house after specific periods. If the value of the property increases in this time, senior citizens can get a higher loan amount. If the senior citizen or the spouse lives beyond 15 years (the normal time of the mortgage) they can continue to live in the house till the last of them expire. If the couple had taken a lump sum loan, they will have to pay interest on the loan amount.

Ashok Gupta, Deputy General Manager, Chandigarh, Union Bank of India, says: "The scheme will prove to be a boon for many senior citizens, who are residing alone in their sprawling bungalows in Chandigarh, but have little available cash flow. "

ICICI Bank, the largest private sector bank, too, is keen to enter reverse mortgage business, once the guidelines are laid out. "This will prove beneficial for those above 55 years of age. But we are awaiting guidelines before taking the plunge in the business," says Kalpana Morparia, joint managing director, ICICI Bank.

Some bankers are, however, skeptical about working out the modalities for introducing the scheme. Vivek Vig, Head, Retail Bank, Centurion Bank of Punjab, says: "Though we are very keen to offer the scheme, several issues have to be resolved like execution of will and getting the property vacated from the heirs. Banks will have to gain expertise on estate management. The RBI and Indian Banks Association will have to call a meeting of banks to have a policy framework for introducing the scheme".