Alternatives to loan against property for business owners

For bigger amounts peer-to-peer lending platforms are good options

Loan against property or LAP is a good source of funds for small businesses and entrepreneurs. However, with the National Housing Bank (NHB) planning to cap the percentage of loan a housing finance company can offer to a borrower against a mortgaged property, this source of funds may soon dry up.

In fact, many lenders have already started going slow on LAP in the recent months. “The loan books of the entities that grew at 40 per cent and 30 per cent in the financial years 2015 and 2016 respectively. In the financial year 2017, the growth slowed down to