Loan Against Property (LAP): LAP ‘A Long-Term Capital Lifeline for MSMEs’
‘Loan against Property’ (LAP) market estimated close to Rs. 3 trillion is quite sizeable in relation to overall
Indian banking credit to the MSMEs at Rs.8.4 trillion1
as on March 31, 2016. Further, this market is growing
at a much faster pace compared to the overall MSME pie and has significantly lower credit losses.
The level of attraction for the LAP market for lenders can only match the criticism level of analysts. While
the market has expanded at an impressive 25%+ annualized pace over the past 3-5 years, caution and
criticism from the analyst has remained strong and steady.
