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 ...
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