L&T Finance Business Loan

Features and Benefits of L&T Business Loan

L&T Business Loans are designed to cater to the needs of small and medium business owners and professionals who wish to expand or grow their businesses or buy new heavy machinery or equipment, etc.

L&T Financial Services offers two types of business loans: SMB (Small and Medium Business) Loans and Farm Equipment Finance Loans. SMB loans are typically tailored to strengthen the new business via customised finance solutions for small and medium businesses and professionals like ICWAs, Chartered Accountants (CAs) and Doctors.

On the other hand, L&T's Farm Equipment Finance is associated with Rural Finance to support the entrepreneurship and livelihood of farmers. Such a loan is provided for purchasing new farm equipment like tractors, irrigation supplies, etc.

• Interest rates start from 10.75%
• Maximum loan amount up to ₹50 lakh
• No collateral required

By availing of L&T Business Loans, you will be loaded with several benefits. Some of the features that make L&T Business Loan stand out are as follows:

Eligibility Criteria for Obtaining L&T Business Loan

L&T has framed some easy eligibility criteria for obtaining business loans. They are as follows:

SME Loans

• You should be at least 26 years of age, and your age must not exceed 65 years at the tenure end. 
• Your annual business turnover should be between ₹80 lakhs and ₹250 crores.
• Should have a minimum business vintage of 3 years.
• At least six months of previous Bureau history is required.

Practice Loans: Loans for Professionals

• You should be at least 26 years old, and your age must not be over 65 years during tenure end. 
• The applicant must be graduated.
• Minimum business vintage of 3 years.
• At least six months of previous Bureau history is required.

Tractor and Farm Equipment Loan

• You should be at least 18 years old, and your age should not exceed 65 years at the end of the loan tenure.
• Should be KYC compliant.
• Income is assessed based on the size of landholdings and per acre yield.

L&T Business Loans Fees and Charges

The fees and charges applicable on L&T Business Loans are as follows:

L&T Business Loan Interest Rates

Since L&T offers different types of business loans, the interest rates of every loan differ.

SMB loan is further categorised into two types: SME Loan and Practice Loan. The interest rates of both SMB loans are different. Given below are L&T Business Loan Interest Rates:

Note: L&T Business Loan interest rates differ from one applicant to another based on their credit profile.

Factors Affecting L&T Business Loan Interest Rates

Business loan interest rates are usually higher than other loans. However, you may still want the lowest possible one. The following are some of the factors that you need to take care of to get a better deal on L&T Business Loan interest rates.

• Credit History: Your credit history must show that you have paid your bills and loans within the stipulated time. Any delays or irregularities will lead you to pay higher interest rates on your business loans.
• CIBIL Score: Your CIBIL/credit score must be at least 750. The better the credit score, the higher your chances of getting a loan at lower interest rates.
• Avoid Getting on Defaulters List: Ensure that you never get on the defaulter's list, or it will send a negative impression of yours to the lenders. As a result, you will be either denied the loan or will get a loan at higher interest rates.
• Relationship with the Lender: It's crucial to maintain a healthy relationship with the lender in case you want your loans to be sanctioned instantly and at lower interest rates.
• Age of the Borrower: The more you approach senior citizenship or retirement (65 in most cases), the lesser your chances of getting a loan at lower interest rates. This is because the retirement age tends to affect the loan repayment potential.
• Income of the Borrower: The banks and companies usually charge a lower interest rate to individuals or firms that have a higher income.

Documents Required for L&T Business Loan

When you are applying for an L&T Business Loan, you must furnish the following documents.

SME Loans

• KYC documents of the firm, including address proof, PAN Card, GST Registration Certificate (if applicable) and other applicable registrations
• KYC documents of the Director/Partner/Proprietor, such as Aadhaar Card, PAN Card, Rent Agreement/ Electricity Bill/Index II
• Income documents, such as the income tax returns along with computation for the latest two years (wherever applicable)
• Last two years' profit and loss statements, balance sheet and GST returns (if applicable)
• Bank account statement for the latest 12 months

Practice Loans

• KYC documents of the firm, including address proof, PAN Card, GST Registration Certificate (if applicable) and other applicable registrations
• KYC documents of the Director/Partner/Proprietor, such as Aadhaar Card, PAN Card, Rent Agreement/ Electricity Bill/Index II
• Income documents, including financial statements of the latest two years such as the computation sheet, IT returns, and balance sheet (wherever applicable)
• Active bank account statement for the last 12 months (if applicable)
• Qualification documents, including the certificate of practice and degree certificate

Tractor and Farm Equipment Loan

• ID proof such as the Aadhaar Card or PAN Card
• Address proof, such as Passport/Latest telephone bill (landline)/Latest electricity bill/Latest bank account statement
• Age proof, like passport/Voter ID card/Driving Licence/PAN card/Aadhaar card
• Income proof as per submissions made at the time of filing returns
• Bank statements for the last six months
• Other documents such as agricultural land documents, NACH/ECS Mandate, PDCs, etc.

How Does the EMI Calculation Work for L&T Business Loans?

L&T business loan calculator offers you an insight into the business loan EMI that you will incur depending on the desired loan amount. That way, you can manage your finances accordingly.

Determine your loan EMI in an instant by entering the amount of the loan, its tenure in years and the interest rate in the L&T Business Loan EMI calculator. The results will be displayed on your screen. The EMI calculator also offers you an option to tweak the amount as per your requirements.

Besides this, you can also use the formula for calculating the business loan. It is as follows:

EMI = P x R x (1+R)N/ (1+R) N - 1

Where,

• P = Loan Amount
• N = Loan Tenure
• R = Rate of Interest

How Does L&T Compare with Other Lenders?

Glance through the table below to understand the comparison of L&T's business loan interest rate with that of its competitors.

L&T Business Loan Customer Care Number

For any queries, grievances or information related to the L&T Business Loan, you can connect with the customer care executives of L&T at any of the following numbers-

• +91 9158004777
• 1800 102 7796
• 022-49186262
• 1800 102 0476 (for grievances)