Cash ban may claim unlikely victim: Loan against property biz
https://www.linkedin.com/title/ripples-advisory Click here and watch out the best Share and Stock Market recommendations or One missed call on @9303093093
The Narendra Modi government’s decision to demonetize Rs 500 and Rs 1,000 currency notes is expected to have an adverse short-term impact on a number of sectors. Analysts believe that a small but fast-growing segment for banks and non-banking financial companies, or NBFCs, termed loan against property (LAP), is at particular risk from the government’s move to crack down on the cash economy. In this, a lender issues a loan keeping a customer’s property as security, with sanction being typically up to 60 percent of the underlying’s market value.
Customers take out these loans for personal or business needs or even to buy another property. At Rs 2.5 lakh crore split roughly evenly between banks and NBFCs, LAP is among the fastest growing segments in the country’s Rs 80 lakh crore credit industry.
The Narendra Modi government’s decision to demonetize Rs 500 and Rs 1,000 currency notes is expected to have an adverse short-term impact on a number of sectors. Analysts believe that a small but fast-growing segment for banks and non-banking financial companies, or NBFCs, termed loan against property (LAP), is at particular risk from the government’s move to crack down on the cash economy. In this, a lender issues a loan keeping a customer’s property as security, with sanction being typically up to 60 percent of the underlying’s market value. 
No comments:
Post a Comment