A "reverse" homeloan is a loan available to senior citizens, who is 62 years or more and don’t have regular income; they can easily get the loan against the home they are living in. Here instead of mortgaging the house property, the borrower can receive a periodic payment from the lender (a bank or house financing company), and in return the borrower don’t have to pay back and can continue to stay in the home during their lifetime.

With this kind of loan, the borrower can turn the value of the loan into cash without any equated monthly installments (EMIs) and opt for a lump sum or a monthly or even quarterly cash payment. The lender can recover the loan amount by selling the property after the death of the borrowers. If the owner permanently leaves the home before the loan tenure, or the value of the property increases with time then the borrower is likely to receive any excess amount at the end.