What is Reverse mortgage?

Reverse mortgage is a new product or concept in India although it is quite popular in the western countries.

So what is this reverse mortgage. Courtesy to wikipedia this is the best explanation

A reverse mortgage (or lifetime mortgage) is a loan available to seniors, and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care).

In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term (e.g., 30 years) the mortgage has been paid in full and the property is released from the lender. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, or a bulk payment of the available equity percentage for their age, then the debt on the property increases each month.

http://en.wikipedia.org/wiki/Reverse_mortgage

Nanden Nalkeni to head National ID Card Project

India needs more such visionaries and leaders to take up such projects which can impact our country in a big way. I am sure he is going to face a big cultural change moving from Infosys where the work culture is highly professional and dynamic to the more laid back and bureaucratic government sector. Wish him all success.

Updates

Its quite some time since I have put in a post. Had been busy with various things in life. But as always I had been keeping up to date with the market and real estate market in India.

India just got a new budget and as expected lot of emphasize on infrastructure and fulfillment of the rural population. These two factors are key for the next phase of growth with the world still limping with the worst ever recession in decades.