Businesspersons commonly use loan against property (LAP) to meet their cash flow requirements. They use their assets to borrow large sums at lower rates
The salaried also use it to fund significant expenses, such as marriage, education abroad, or for debt consolidation
Lenders typically lend up to 50-60 per cent of property value.
Earlier, non-banking finance companies (NBFC) were aggressive in this segment but have slowed down after the liquidity crunch
Industry experts say taking LAP from banks is advisable
Since the amounts offered are high, s.....