Business Loan

Fuel your business growth with our instant business loan with an interest rate starting from 15%* p.a. Get financing up to ₹ 75 Lakh with a repayment tenure of up to 60 months. Our online business loans are collateral-free and have a simple application process. You can get quick loan approval and disbursal directly into your bank account. Our dedicated team is committed to providing personalised support and ensuring a seamless experience for you.

Loan Amount

Grow your business from loan amount from ₹ 7 lakh to ₹ 1 crore

Low Interest Rate

Easy loans with attractive rate of interest starting from 15%* p.a.

Flexible Tenure

Repay your loan with a maximum tenure of up to 60 months

Convenient Overdraft Facility

Easily access extra funds with online overdraft facility

Fast Approval with Simple Process

Real time update of stages with quick loan approval and disbursal

Collateral Free

There is no need to mortgage your belongings to get a loan

Business Loan EMI Calculator

Results generated by the calculator(s) are indicative in nature.

Preferred loan amount

₹

₹ 7,00,000

₹ 1,00,00,000

Interest rate (per annum)

15.00%

21.50%

Loan tenure (months)

12 months

60 months

Estimated EMI

per month

₹ 36,690
Interest payable
₹52,41, 690

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Business Loan Eligibility & Documents Required

Eligibility for Business

Age:

24 to 65 years

Turnover:

₹ 80 Lakh to ₹ 500 Crore

Ownership

Residence or Office to be owned

Minimum Business Vintage:

Your business should have been operational for at least 3 years.

Credit History:

A minimum of 6 months of credit history is required.

Documents Required for Business Loan

KYC Documents

Entity - PAN Details, Entity Registration Docs - depending on Entity Type (Shop Act / GST Returns / MOA / AOA / Certificate of Incorporation / Partnership Deed / LLP Agreement)

Individual (Proprietor / Partner / Director) – PAN Details, OVD Document (Aadhar Card / Voter ID / Driving License / Passport / Utility Bill + Rent Agreement)

Income Documents (wherever applicable):

Latest 2 years – Audited Financial Statements, Income Tax Returns, Tax Audit Reports, 6 months GST Returns

Bank Account Statement

Operative Bank Account Statement for the Latest 12 months

Others Documents

Ownership Documents ((Any 1) - Utility Bill / Sales Deed / Index II / Property Tax Receipt), Board Resolution, List of Shareholders, List of Directors

Business Loan Fees And Charges

List of all fees and charges for Business Loan

Charge type -Small Medium Enterprise (SME) Term Loan / Drop line / Over Draft (OD)/ Hybrid Over Draft (OD)
Details
Processing Fees
Up to 3% on sanctioned amount + applicable taxes
Facilitation Fee
For loans with Sanction up to Rs. 25 lakhs - Up to Rs.5,000/- + applicable taxes
For loans with Sanction above Rs. 25 lakhs – Up to Rs.10,000/- + applicable taxes
EMI Dishonour/Bounce Charge*
*A bounce charge is a charge for
(i) dishonour of any repayment instrument; or
(ii) non-payment of instalment(s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate
As shown in the table below

Loan sanction amount (in INR)

Charges in (in INR)

< 5 lacs

₹ 500

5 – 50 Lacs

₹ 1000

>50 Lacs – 2 Cr

₹ 1500

>2 Cr

₹ 2000

Penal Charge/Late Payment Charge (LPC)
Up to 2% per month (p.m.) on overdue EMI + applicable taxes
Part Prepayment Charges (For Term Loan):
Up to 2% on total partprepayment amount + applicable taxes
Part Prepayment Charges (for Dropline Overdraft / Hybrid Overdraft)
Nil, Part - prepayment of Loan will not amount to limit reduction.
Annual Maintenance Charges (AMC) (For Term Loan):
NIL
Annual Maintenance Charges (AMC) (for Dropline Overdraft)
0.5% + applicable taxes, on the Dropline limit starting on the 13th Instalment and every anniversary thereafter
In the event the average utilization of the Dropline Limit Facility, calculated based on daily limit utilization of the Borrower, is less than 50% for the preceding 365 days, then the Lender shall charge the Borrower twice the Annual Maintenance Charges as stipulated in the Schedule
Annual Maintenance Charges (AMC) (for Hybrid Overdraft)
No upfront charges/Zero charges at the time of disbursement for the Hybrid Limit. 0.5% + applicable taxes, on the Hybrid Limit as on the 13th Instalment & every anniversary thereafter
In the event the average utilization of the Dropline Limit Facility, calculated based on daily limit utilization of the Borrower, is less than 50% for the preceding 365 days, then the Lender shall charge the Borrower twice the Annual Maintenance Charges as stipulated in the Schedule.
Foreclosure Charges:
- After 6 months of disbursement: Up to 5% + applicable taxes on outstanding amount for Term Loan/ on Dropline/Hybrid limit amount on the date of such foreclosure
- Prior to 6 months of disbursement: Up to 6% + applicable taxes on outstanding amount for Term Loan/on Dropline/Hybrid limit amount on the date of such foreclosure
Repayment instrument Swap Charges (per swap):
Up to Rs.500/- + applicable taxes (applicable only for branch walk-ins)
Document retrieval / Duplicate NOC charges
Nil for digital copy.
Charge for paper copy is Up to Rs.1000/- + applicable taxes per statement/letter/certificate.
Legal fees and charges:
As per actuals or Up to Rs. 50,000/- whichever is lower + applicable taxes
Recovery charges:
As per actuals or Up to Rs. 15,000/- whichever is lower + applicable taxes
Field collection service charge:
Up to Rs.500/- per collection + applicable taxes

Business Loan Interest Rate

A Business Loan helps you manage your working capital, expand operations, or invest in growth opportunities. Knowing the Business loan interest rates and repayment options is important for financial planning. Business Loans are available starting from 15% per annum*, with flexible repayment tenure of up to 60 months.

Why Choose a Business Loan from L&T Finance?

A Business Loan might be the right way to get access to funds for growth and working capital. Finding the right lender gives you clarity, flexibility, and consistency in support throughout the loan tenure. L&T Finance gives you the option of getting Business Loans equipped with flexible terms and features to meet a wide range of business demands.

Here are some key reasons to choose a Business Loan from L&T Finance

Flexible Loan Amounts : Borrow up to ₹ 1 Crore and up to ₹ 2.5 Crore* with Supply Chain Finance, based on your business needs
Attractive Interest Rates : Competitive rates starting from 15%* per annum
Customised Tenure Options : Repayment period of up to 60 months* for ease of planning
Minimal Documentation : Simple process designed to save time and effort
Multiple Loan Types : Options such as Term Loan, Working Capital Loan, Equipment Financing, and Line of Credit
Transparency : Clear terms and repayment schedules with no hidden charges
Financial Growth Support : Helps manage working capital, business expansion, and purchase of equipment or stock

L&T Finance Business Loans give you the advantage of a trusted financial partner that understands business needs and provides solutions that support long-term growth.

Types of Business Loans

Businesses have different financial needs depending on their size, operations, and goals. To support these needs, there are various types of Business Loans available. Understanding each type can help you choose the right loan for your requirements.

Term Loan
It is a lump sum loan provided for a fixed amount and repaid in regular instalments over a chosen tenure. It is ideal for expansion, upgrading infrastructure, or meeting large capital needs.
Working Capital Loan
These loans help to manage day-to-day operational expenditures such as salaries, rent, and raw materials. This loan supports a smooth cash flow during setbacks of revenue fluctuations.
Equipment Financing
It is used to purchase or add on machines, vehicles, or any other required equipment related to the business. Since the loan is secured to the equipment, it is easier to gain funding.
Line of Credit
Provides the flexibility of drawing funds whenever required to the approved limit. Interest is charged only on the amount utilised, making it suitable for businesses with seasonal or unpredictable cash flow.

L&T Finance Business Loans give you the advantage of a trusted financial partner that understands business needs and provides solutions that support long-term growth.

How to Apply for Business Loan Online?

Apply for Business Loan with these steps

1. Apply Online
Click on the "Apply Now" button in the business Loan section and fill in the form with your personal details and loan requirement
2. Get in Touch
Our loan representative will contact you and share available loan offers and collect required documents
3. Eligibility and Document check
Our representative will check your bussiness loan eligibility and verify your documents before processing the loan
4. Get Loan Disbursement
Get your loan disbursement directly in your bank account, ensuring fast and seamless access to funds

FAQs & Support

View all

How is the Processing Fee for a Business Loan Calculated?

Lenders charge a processing fee of 1-3% of the loan amount, deducted before disbursal.

What is the minimum turnover requirement for a Business Loan?

Minimum turnover varies from ₹10 lakh to ₹50 lakh, depending on the lender and loan type.

What are the requirements to get a business loan?

Applicants need identity proof, business proof, financial statements, and a good credit score to qualify for a business loan.

What is the minimum CIBIL score needed for a business loan?

A CIBIL score of 650+ is recommended for higher approval chances and better interest rates.

How is the interest rate for a Business Loan Calculated?

The interest rate depends on credit score, loan amount, business turnover, and lender policies.

What is the tenure to repay my business loan?

Loan tenures typically range from 12 months to 5 years, with flexible EMI options.

Who can apply for a business loan?

MSMEs, startups, self-employed professionals, traders, manufacturers, and business owners meeting business loan eligibility criteria can apply.

How much time does it take to process a business loan?

Online business loans are processed within 24-72 hours, while offline loans may take up to 7 days.

What are the different types of collateral-free business loans?

Options include unsecured working capital loans, MSME loans, and government-backed small business loans.

How to apply for a Business Loan online?

Borrowers can apply for business loan online by submitting KYC, financial statements, and business proof through the lender's website.

Explore all FAQs

Business Loan

As a steel and aluminum trader, I needed constant capital post-COVID. L&T Finance's DLOD service impressed me with a seamless, fully digital process. Their executive guided me well, leading to a swift sanction. The competitive interest rate & round the clock transaction facility were game-changers for my business.

Jignesh Solanki

Mumbai

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As a 2nd generation entrepreneur, expanding my PVD coating business was made easy with L&T Finance. The process was fast & smooth, with minimal paperwork & the best interest rates. All documents got digitally uploaded & approved. PLANET App mae part payments & additional withdrawals easy.

Harsh Gosalia

Pune, Maharashtra

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Setting up a molecular lab post-pandemic was challenging, but L&T Finance made it possible with quick turnaround, minimal documentation, and competitive rates. Thanks to their support, I expanded services, reduced waiting times, and offered new tests, serving more people efficiently.

Dr. Hrishikesh Chevle

Thane, Maharashtra

SME

The special aspects of L&T Finance SME Loans are their faster turn around time, minimal documentation. I had a very good experience with L&T Finance SME Loans and I recommended it to a lot of my Doctor friends who have equally benefitted.

Dr. Hrishikesh Chevle

Pathologist, Alpine Diagnostics