A total of 142 isolates of lactic acid bacteria (LAB) were isolated from dairy and non-dairy sources. The LAB isolates were screened for antimicrobial activity. Out of 142 isolates only 68 isolates exhibited antimicrobial activity. Among these isolates, nine showed wide spectrum antimicrobial activity as well as good bile salt, acid and phenol tolerance. Seven isolates of the latter ones showed more than 20% cholesterol reduction and an observed bile salt hydrolase (BSH) activity. The promising isolates were identified using phenotypic, biochemical and genetic methods.