You are here: Home » PF » Features » Loans
Business Standard

Loan against property: The dos and don'ts

Frequent balance transfer in search of a lower rate can be tricky for borrowers, if property prices fall

Priya Nair 

Loan against property, or LAP, a popular way of raising money on a short notice for entrepreneurs, businessmen and individuals, seems to be running into rough weather. A recent report from India Ratings says there have been rising delinquencies - as much as 30 per cent in the case of some lenders - due to stagnancy in prices and dilution of risk mitigation practices. For instance, there is an increasing trend of accepting non-residential properties and unoccupied residential property. While selling, these might fetch lower value. LAP is typically availed of by self-employed businessmen, ...

TO READ THE FULL STORY, SUBSCRIBE NOW AT JUST Rs 149 A MONTH

Key stories on business-standard.com are available to premium subscribers only.

LOGIN

EMAIL / USER NAME
PASSWORD
REMEMBER ME Forgot password?

Not a member yet ? Resister Now

Connect using any below

  • Don't lose the opportunity of saving $26.77 per month
  • Don't lose the opportunity of saving $26.77 per month
Total Amount
Rs. 0.00
To proceed, kindly select a subscription package

WHAT YOU GET

On Business Standard Digital

  • Access your subscription from anywhere. Be it your computer, tablet or smartphone using a browser or the App, Your Choice.
  • Access to exclusive content, features, opinions and comment, hand-picked by our editors, just for you.
  • Pick your 5 favourite companies. Get all the news upates at the end of each day through E-Mail.
  • Pick the industry that you want to track. And get a daily news letter specific to that industry. Cut out the clutter.
  • And stay on top of your investments. Track stock prices in your portfolio
  • Access 18 years of archival data

On Digital

  • Seamless access to WSJ.com with your Business Standard digital account.
  • Experience the best of the Journal's reporting, video and interactive features.
  • Read about the people and events shaping business, finance, technology, politics, technology and culture.
  • Stay informed with newsletters - an easy way to get WSJ content straight to your inbox - making life easier on your busiest days.
  • More business executives read the Journal globally than any other publication.
*Note :
Our Partners are proud to be associated with this initiative and will contribute Rs 100 x 6 months thereafter, standard rate of Rs 149 will be charged.
Offer valid for Indian residents only
Requires you to share personal information like PAN, Date of Birth, and Income.
*Annual saving on WSJ subscription price of US$ 347.88 (12 months @ US$ 28.99 per month)
* 1US$ = 67.50 INR.
*Please note that this offer is not valid if you are/were a registered/existing user on WSJ Digital
RECOMMENDED FOR YOU

Loan against property: The dos and don'ts

Frequent balance transfer in search of a lower rate can be tricky for borrowers, if property prices fall

Frequent balance transfer in search of a lower rate can be tricky for borrowers, if property prices fall Loan against property, or LAP, a popular way of raising money on a short notice for entrepreneurs, businessmen and individuals, seems to be running into rough weather. A recent report from India Ratings says there have been rising delinquencies - as much as 30 per cent in the case of some lenders - due to stagnancy in prices and dilution of risk mitigation practices. For instance, there is an increasing trend of accepting non-residential properties and unoccupied residential property. While selling, these might fetch lower value. LAP is typically availed of by self-employed businessmen, ... image
Business Standard
177 22

Loan against property: The dos and don'ts

Frequent balance transfer in search of a lower rate can be tricky for borrowers, if property prices fall

Loan against property, or LAP, a popular way of raising money on a short notice for entrepreneurs, businessmen and individuals, seems to be running into rough weather. A recent report from India Ratings says there have been rising delinquencies - as much as 30 per cent in the case of some lenders - due to stagnancy in prices and dilution of risk mitigation practices. For instance, there is an increasing trend of accepting non-residential properties and unoccupied residential property. While selling, these might fetch lower value. LAP is typically availed of by self-employed businessmen, ...

image
Business Standard
177 22