NBFC liquidity squeeze hits Loans Against Property market

The market for Loans Against Property (LAP), among the borrowing avenues that fuelled runaway growth among Non Banking Finance Companies (NBFC) until the recent liquidity squeeze, appears to be grinding to a halt as lenders are not keen on increasing their exposure. 

With NBFCs holding on to cash and the cost of funds going up, LAP has become unviable as rates have been raised by up to 2.5 percentage points.

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