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

• 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