Loan against property need not be a sin word for NBFCs

Standards of underwriting for loan against property have improved for listed NBFCs

Time and again there is enough caution sounded off about the risky nature of loan against property or LAP. But, industry experts call this caution as stretched and believe that all LAP loans should not be painted with the same brush. They argue that many of the listed non-banking finance companies (NBFCs) have improved their underwriting standards substantially to an extent that today they are well-equipped to stomach even 20-30 per cent fall in property prices. Underwriting is the process of detailed credit analysis deployed by financiers before sanctioning and disbursing loans based on information provided by their customers as