MUMBAI: Home finance companies may be the toast on stock exchanges, but they are going slow in lending to struggling builders and small companies.The market for loans against property ­­ LAP ­­ which was among the fastest-growing segments in the loan market, is believed to have been building up risks in their books. India Ratings had said in a report that delinquencies may significantly increase in the next four quarters. “Delinquencies may even exceed 5% on a static basis for a few non-bank financial institutions (NBFCs), about three times those in FY14,“ the report had said. There's a fear that squeeze on refinancing due to risk aversion building up in some financiers is bringing stress to the fore. Bajaj Finance has cut its loan against property business, and it is down 5% over the previous quarter.

Source: Economic Times November 02, 2016 05:56 UTC