Loans against property (LAP) are popular among businessmen who prefer them over personal loans to meet their working capital needs as the interest rates are lower But if the business falters, or the borrower is unable to rent out the property and earn rental income from it, he could face problems in repaying the loan In case of a default, the lender could repossess the property.
Therein lies the main risk of LAP Only take this loan for productive purposes Have backups in place - assets like gold, ancestral property, shares, etc - that ...
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