Loan against property is a funding option (leveraging the appreciating equity of the property) which is exercised predominantly by business owners (proprietor, partners, and directors) to fund permanent working capital of a growing business. Sometimes, it could be used for investment purpose also.
While the property provides security to the transaction (therefore legal title & valuation plays a key role); the assessment of the business entity is crucial to LAP lending. Challenges include under-reporting of revenue & profits; ambitious projections, assessment of actual need & monitoring of end use of funds.
The 2 day training program provides insights on several aspects of credit assessment including both qualitative and quantitative aspects wrt to LAP lending. This would include understanding business cash flows, relevant financial ratios, revenue model, early warning signals & portfolio monitoring. It is important to understand the purpose of LAP, assessment of LAP requirement & linking it to the fund requirement of the customer. The training focuses more on credit assessment of the customer (revenue potential, cash flow stability, and end use) than property dynamics (value & legality).
Level Basic to Intermediate
The programme will cover
Overview on property market in India
Understanding issues in land ownership and title transfer in India
Financial statement analysis of different types of businesses
