At present, all the borrowers are really struggling to repay their loan amount. A few years back, it was easy for the salaried persons to avail personal and other types of loans from the banks. They have used the money to buy international products like LED Televisions, Smartphones and other luxury products. Since the period repaying was too long, they were able to manage their loan payments. Recently, all the banks have increased rate of interest for all the loans and now, the borrowers are just sinking. The banks offer personal loans for the interest rate, between 16 and 36%. Now, the borrowers are confused and many of them are planning to go for the loan consolidation program.

The Loan Against Property is the basic LAP program. Already they are unable to meet their commitments and if they pledge their properties, how they are going to redeem their properties? A Chennai resident, Mr. Sridhar Sundaram says that he has availed the home loan from a public sector bank and has been repaying the monthly installments, on due dates. Now, he is trying to find another source to increase his income, so that he can manage his finance.