LAPs can be risky bets

Most borrowers of loans against property pin hopes on future cash flows from their business

Delinquencies in loan against property (LAP) are on the rise. According to Crif Highmark, one of the country's four credit bureaus, the total LAP portfolio of banks, non-banking finance companies (NBFCs) and housing finance companies (HFCs) stood at Rs 3.7 lakh crore in September 2017. Non-performing assets had risen to 3.75 per cent in September 2017 from 2.98 per cent a year earlier. Rating agency Crisil too expects delinquencies in the LAP segment for non-banking finance companies to rise by 70 basis points to 3.3 per cent by the end of this financial year. While lenders can be expected to