The concept of Reverse Mortgage RM is gaining momentum in India with the Finance Minister P. Chidambaram giving his nod in the Union Budget for 2007-08. Subsequently, the National Housing Bank NHB, a subsidiary of the Reserve Bank of India RBI, released the guidelines. This had led several banks to announce their intentions to launch the scheme. Taking the lead, Dewan Housing Finance Limited DFHL followed by Punjab National Bank PNB and Bank of Baroda BOB, States Bank of India SBI, etc. announced the scheme aimed at senior citizens.In a regular mortgage, a borrower mortgages his newexisting house with the lender in return for the loan amount, the same is charged at a particular interest rate and runs over a predetermined tenure. The borrower then has to repay the loan amount in the form of Equated Monthly Installments EMIs, which comprise of both principal and interest amounts. The property is utilized as a security to cover the risk of default on the borrowers part.