Faqs - L&T Finance

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How is the interest rate for a Business Loan determined?

It is based on credit score, loan amount, business performance and loan type.

Do secured and unsecured Business Loans have different interest rates?

Yes. Secured loans usually have lower interest rates due to the presence of collateral.

How can I get a lower interest rate on my Business Loan?

Maintain a high credit score, provide complete financials, offer collateral, and compare offers from multiple lenders.

Does my credit score impact the Business Loan interest rate?

Yes. A good credit score can get you better rates, while a low score increases the lender’s risk, leading to higher rates.

What is the difference between fixed and floating Business Loan interest rates?

Fixed rates remain constant throughout the tenure. Floating rates vary as per market changes and the base rate.

What are the penalties for late repayment of a Business Loan?

L&T Finance charges a late payment of 2% per month (p.m.) on overdue EMI + applicable taxes on SME Loans. These charges may vary depending on the type of Business Loan you choose.

How does the loan tenure affect the Business Loan interest rate?

Shorter tenures usually attract lower rates. Longer tenures might come with higher rates due to extended risk exposure.

Can I refinance my Business Loan for a lower interest rate?

Yes. Refinancing is possible if you meet eligibility.

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