L&T Finance Business Loan

L&T Financial Services (LTFS) is the brand name for LTFH's lending and non-lending operations, which provide financial solutions to a varied set of customers. L&T Financial Services offers an array of products to cope with customers' varied requirements including personal loans, business loans, and home loan at affordable interest rates.

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L&T Finance Business Loan

  • Interest Rate

    15.5% - 24%

  • Loan Amount

    Up to ₹50L

  • EMI Per Lakh

    ₹2,405 - ₹2,877

  • Processing Fees

    1% of the loan amount (fixed)
  • Pre-Payment Charges


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:

Higher Loan Amount Depending on your loan requirements, you can receive a loan amount of up to ₹50 lakh.
Competitive Interest Rates The company offers attractive interest rates on Tractor and Farm Equipment Loan starting at 10.75%, while the interest rates on SME Loans and Practice Loans start at 15.5% and 12.5%, respectively.
Maximum Repayment Tenure Businesses and practitioners get maximum repayment tenure of up to 60 months, i.e. of 5 years, while farmers get a repayment term of 6 years.
Live Status Updates You will get real-time updates on your application status, such as document verification, time taken to process your loan etc.
No Hidden Charges L&T Financial Holdings Ltd. doesn't keep any hidden charges. All the charges and fees, along with the interest rates, have been defined on the official website of the company.
No Collaterals Required The company doesn't ask you to pledge any collateral or securities for availing of a business loan.
Minimal Documentation Rendering a few documents like identification, address, and income proofs to L&T will get your loan sanctioned soon.

L&T Business Loans Fees and Charges

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

Types of Fees Applicable Rates and Charges
Pre-Payment Charges 2% on principal outstanding + applicable taxes
Processing Fees 2%
Bounce Charges ₹500 per bounce

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:

Types of Business Loans Interest Rates
SME Loan Starting at 15.5%
Practice Loan Starting at 12.5%
Farm Equipment Finance Loan Starting at 10.75 %

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


  • 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.

Bank/NBFCs Interest Rate
L&T 10.75% - 20.5%
DHFL 17% p.a.
IDFC First Bank 14.50% onwards
HDFC Bank 11.90% – 21.35% p.a.
Axis Bank 14.25% – 18.50% p.a.
Lendingkart Finance 1.5% – 2% per month
Kotak Mahindra Bank 16% – 19.99%
IIFL Finance 11.75% – 25.75% p.a.
ZipLoan 1% – 1.5% per month (Flat ROI)
RBL Bank 17.50% – 25% p.a.
Tata Capital Finance 19% p.a. onwards
ICICI Bank 18% onwards
NeoGrowth Finance 19% – 24% p.a.
Bajaj Finserv 17% p.a. onwards
FlexiLoans 1% per month onwards
Fullerton Finance 17% – 21%
Indifi Finance 1.5% per month onwards
Hero FinCorp Up to 26% p.a.

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)


From refinancing to reducing your interest, we have the answers right here.

What is the maximum amount of SMB loan I can avail of from L&T?

L&T offers a maximum of ₹50 lakh SMB loan. However, it varies from one individual to another. If your credit score is higher and you qualify for the loan, you might get the desired amount.

What is the interest rate offered on tractor and farm equipment loans?

L&T offers the lowest interest rate of 10.75% on Tractor and Farm Equipment loans.

What is the maximum business loan repayment tenure at L&T?

For SMB and Practice loans, you get a maximum repayment tenure of 60 months, while for Tractor loans, you get six years to repay your loan.

What should be the annual turnover of the business to avail L&T SMB loan?

The annual turnover of your company must range from ₹80 lakh to ₹250 crores to get an SMB loan from L&T.

Do I need to provide any collateral to avail L&T Business Loan?

No, you don't need to pledge any collaterals or securities for L&T Business Loans.

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