Why Are NBFCs Turning to Loan Against Property (LAP)?
India’s Non-Banking Financial Companies (NBFCs) are entering a new growth phase — and Loan Against Property (LAP) is leading the way.
The Shift Toward Secure, Reliable, and Scalable Lending
With growing demand from MSMEs and entrepreneurs in Tier-2 and Tier-3 cities, NBFCs are rapidly adopting LAP models to meet the need for quick and flexible financing. Unlike unsecured loans, LAP offers the advantage of asset-backed security, ensuring lower risk for lenders and better interest rates for borrowers.
Technology-driven lending models, digital property verification, and faster loan approvals are transforming how NBFCs operate — making LAP not just secure, but also efficient and profitable.
10 Reasons Why Loan Against Property Is Reshaping NBFC Lending by 2030
- Secure Lending Model: Collateralized loans reduce default risk.
- Rising MSME Demand: Small businesses prefer LAP for quick working capital.
- Attractive Interest Rates: Borrowers enjoy lower rates compared to unsecured loans.
- Flexible Repayment Options: Customizable EMIs support diverse borrower needs.
- Higher Loan-to-Value (LTV) Ratios: Improved accessibility for borrowers.
- Tech-Driven Processing: Digital KYC, AI valuation, and e-agreements enable faster approvals.
- Expanding Market Reach: NBFCs penetrate untapped rural and semi-urban markets.
- Stable Asset Portfolio: Real estate-backed loans improve balance sheet strength.
- Regulatory Support: RBI encourages transparent and structured lending frameworks.
- Sustainable Profitability: LAP drives long-term revenue stability for NBFCs.
How Induce India Helps NBFCs Succeed
At Induce India, we help NBFCs design compliant, scalable, and profitable lending models — from registration and licensing to growth strategy and digital transformation.
Whether you’re launching a new NBFC or expanding your loan portfolio, our team ensures your LAP model aligns with RBI norms and market trends.
Contact us for a free consultation
+91 93113 47006