L&T Finance Personal Loan Interest Rates

4.5

L&T Finance Holdings Ltd. offers personal loans starting at 11% p.a. for loans up to Rs. 7 lakh and payback terms up to 4 years. The non-banking financial corporation (NBFC) makes consumer loans available to borrowers to cover costs associated with home improvements, festivals, weddings, education, and medical requirements. Low-income female borrowers can also get microloans from L&T Finance. The NBFC asserts that it offers L&T Finance Personal Loan with a fully digital application process, low documentation requirements, and a quick loan approval process to both salaried and self-employed applicants.

  • Personal Loan offer for You

  • 12% - 20%

    Interest Rate (p.a.)
  • ₹50K - ₹7L

    Tenure(1 - 4 Years)
  • ₹2,224 - ₹2,649

    EMI Per Lakh
  • 12% - 20%

    Interest Rate (p.a.)
  • ₹50K - ₹7L

    Tenure(1 - 4 Years)
  • <ul><li>Consumer Loan: Up to 2% of principal outstanding plus applicable taxes</li><li>Micro Loan: 1% of loan amount plus applicable taxes</li></ul>

    Processing Fee

Compare L&T Finance Personal Loan Interest Rates with Other Lenders

The table below compares L&T Finance Personal Loan interest rates with other banks and lending institutions.

  • Starting Interest Rate (p.a)
  • Processing Fee
  • Rating
  • Min. Loan Amount
  • CASHe PL Interest Rate

  • 27%

  • We offer a 2.50% interest rate per month (Equivalent to reducing the balance interest rate to 3.71% per EMI) on the loan amount.

  • 4.5

  • ₹1K - ₹4L

    Tenure(7 - 45 Years)

  • Prefr PL Interest Rate

  • 15% - 36%

  • 3-5% with Minimum Proc. Fee of INR 1500 + GST

  • 4.5

  • ₹50K - ₹5L

    Tenure(1 - 4 Years)

  • 50 K
  • 1 Cr
Years
  • 1
  • 5
%
  • 8
  • 25

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹10,00,000

Interest Payable

Total Amount Payable

L&T Finance Personal Loan Interest Rates

With a focus on customer satisfaction, L&T Finance's personal loan is a popular choice for those seeking a simple and efficient financing solution. The interest rate on personal loans offered by L&T Finance is competitive, ranging from 11.00% p.a., and can vary based on factors such as the loan amount and the individual's credit score.

Features and Benefits of L&T Finance Personal Loan 

L&T Finance Personal Loan features and benefits are listed below. 

  • Quick Disbursal: L&T Finance offers quick disbursal of personal loans, ensuring borrowers can access funds when needed.
  • Competitive Interest Rates: L&T Finance offers competitive interest rates ranging from 11.00% p.a. on their loans, providing borrowers an affordable financing option.
  • Flexible Repayment Options: L&T Finance offers flexible repayment options (12 -48 months) for personal loans, allowing borrowers to choose a plan that works best for their financial situation.
  • Wide Eligibility Criteria: L&T Finance has broad criteria for personal loans, making it easier for borrowers to qualify.
  • Convenient Application Process: L&T Finance's personal loan application process is simple and convenient, allowing borrowers to apply for a loan from their homes.

Factors Affecting L&T Finance Personal Loan

Several factors affecting L&T Finance Personal Loan Interest Rates are listed below. 

  • Credit Score: Your credit score is one of the most critical factors that affect your personal loan interest rate. A high credit score will increase your chances of getting a low-interest rate, while a low credit score may result in a higher interest rate or even loan rejection.
  • Income and Employment: When evaluating your loan application, lenders consider your income and employment stability. A steady source of income and stable employment can increase your chances of getting a personal loan at a low-interest rate.
  • Loan Amount and Tenure: The loan amount and tenure you choose will also affect your interest rate. A higher loan amount or longer loan tenure may result in a higher interest rate.
  • Purpose of Loan: The purpose of the loan may also impact the interest rate. For example, a loan taken for a high-risk purpose, such as funding a business, may result in a higher interest rate than a loan taken for a low-risk purpose, such as debt consolidation.
  • Loan to Value Ratio (LTV): The Loan to Value Ratio is the loan amount ratio to the collateral's value. A higher LTV may result in a higher interest rate, representing a higher risk for the lender. If you're putting up collateral to secure the loan, ensure you have a low LTV to get the best interest rate.

How to Calculate L&T Finance Personal Loan Interest and EMI?

To calculate the interest and EMI (Equated Monthly Instalment) for an L&T Finance personal loan, you can use the following formulas:

Interest calculation: The interest on a personal loan is calculated as the 

loan amount * interest rate * loan tenure (in months) / 12 / 100.

For example, if you take a personal loan of INR 1,00,000 at an interest rate of 12% per annum for a tenure of 2 years (24 months), the interest would be calculated as follows:

Interest = Loan amount * Interest rate * Loan tenure (in months) / 12 / 100 

Interest = 1,00,000 * 12/100 * 24/12 

Interest = 28,800

 

EMI calculation: The EMI for a personal loan is calculated using the formula: 

[P x R x (1+R)^N]/[(1+R)^N-1]

Where

P is the loan amount,

R is the monthly interest rate (calculated as the annual interest rate / 12)

N is the loan tenure in months.

For the above example, the monthly interest rate would be 12/12 = 1%. The EMI would be calculated as follows:

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

EMI = [1,00,000 x 1/100 x (1+1/100)^24]/[(1+1/100)^24-1] 

EMI = INR 4,766

Note: These calculations are based on simple interest calculations and may not reflect the exact amount you would have to pay as the actual interest rate and charges can vary. Checking with L&T Finance for the most accurate and up-to-date information is best.

L&T Finance Fees and Charges

The table below shows L&T Finance Personal Loan fees and additional charges. 

Charge Type - Consumer Loans Details
Processing Fee Upto 2% of loan amount + applicable taxes
Repayment bounce charges Rs.350/- + applicable taxes if any
Late payment interest 3% per month on overdue EMI
Part Prepayment Charges Upto 5 % of the prepaid amount + applicable taxes Upto 25% allowed twice in a year.
Foreclosure Charges 5% of principal outstanding + applicable taxes
Annual Maintenance charges Nil
Legal /Recovery charges As per actuals
Duplicate NOC charges (Charge is applicable for paper copy post three free copies per customer) Rs 250/- + applicable taxes
Repayment swap charges ( per swap) Rs 500/- + applicable taxes
SOA/RPS /FC letter & other documents Nil

How to Get Low-Interest Rates on L&T Finance Personal Loan?

To avail of lower interest rates on an L&T Finance personal loan, it is essential to follow the steps below. 

  1. Maintain a good credit score: A high credit score can increase your chances of getting a low-interest rate on a personal loan. You can check your credit score and take steps to improve it before applying for a loan.
  2. Compare interest rates from multiple lenders: Don't just rely on one lender; compare the rates offered by multiple lenders to find the best deal.
  3. Negotiate with the lender: If you have a good credit score and have been a responsible borrower in the past, you may be able to negotiate for a lower interest rate with L&T Finance.
  4. Consider longer loan tenure: Opting for a longer loan tenure can result in lower EMI payments and lower interest rates.
  5. Choose a loan with a fixed interest rate: A loan with a fixed interest rate is more predictable and can result in lower interest rates than a loan with a floating interest rate. Consider choosing a fixed-interest rate loan if you prefer stability and predictability in your loan payments.

Personal Loan by Other Banks

Frequently Asked Questions (FAQs)

What is the current interest rate of L&T Finance personal loan?

The current interest rate of L&T Finance personal loan is 11.00% p.a. It is best to check the latest rates directly with the lender.

How can I reduce my interest in L&T Finance personal loans?

Having a good credit score, negotiating with the lender, opting for a longer loan tenure, and choosing a loan with a fixed interest rate can help reduce your interest on a personal loan from L&T Finance.

Is L&T Finance personal loan a floating rate loan or a fixed-rate loan?

The type of interest rate offered by L&T Finance on personal loans can vary. It is best to check with the lender directly for more information.

Do L&T Finance demand collateral or security for personal loans?

L&T Finance doesn’t require collateral or security for personal loans.

Can individuals pay off their L&T Finance loans EMI early?

Individuals may be able to pay off their L&T Finance personal loans early. However, checking with the lender for more information on prepayment charges or fees is best.

What is the EMI for INR 1 lakh personal loan?

The EMI for an INR 1 lakh personal loan from L&T Finance will depend on the interest rate, loan tenure, and processing fees. Using an EMI calculator or contacting the lender for an accurate calculation is the best option before obtaining a personal loan.

What is the EMI for INR 10 lakhs personal loan?

The EMI for an INR 10 lakhs personal loan from L&T Finance will depend on factors such as the interest rate, loan tenure, and processing fees. Using an EMI calculator or contacting the lender directly for an accurate calculation is best.

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