Need emergency money? Opt for a bank when taking loan against property

Here is how the loan against property rates offered by banks and housing finance companies stack up

Tinesh Bhasin
Last Updated at October 13, 2019 23:55 IST

Representative image

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, some tend to over-leverage. Avoid doing so
The borrower can also get a top-up if he has a regular repayment track record
LAP does not offer any tax benefit. Business owners can, however, show the interest paid as an expense

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

MONTHLY

₹ 249

Select

ANNUAL

₹ 1799

Select

Best Offer

SMART ANNUAL

₹ 1499

₹ 1799

Opt for auto renewal and save Rs 300

Select

What you get on Business Standard Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Pick your 5 favourite companies, get a daily email with all news updates on them.
26 years of website archives.
Preferential invites to Business Standard events.