FAQ - L&T Finance

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Do seasonal businesses qualify for SME Loans?

Yes, as long as they demonstrate stable cash flow during their operational months and meet other eligibility criteria. We assess the annualized cash flow, not just peak season performance.

Can I apply for an SME Loan without audited financial statements?

Audited financials strengthen your application, but you can apply for an SME Loan without them. However, non-audited statements may limit the maximum loan amount you are eligible for.

What minimum turnover is required to qualify for an SME Loan in India?

Turnover requirements for L&T Finance range from ₹ 80 Lakh to ₹ 500 Crore. The exact minimum required depends on the loan amount and your business profile. (Updated from ₹ 250 Crore to align with the main eligibility section.)

Are co-applicants or guarantors necessary for SME Loans?

Not always. However,Some instances may require a co-applicant or guarantor, especially for larger loan amounts or if the primary applicant's credit profile needs strengthening.

Can I get an SME Loan if my business is not yet profitable?

Yes, some lenders may offer loans to growing businesses with strong potential, provided other criteria like revenue and creditworthiness are met. Focusing on strong cash flow and minimal existing debt will be crucial in this case.

What financial documents are typically required to apply for an SME Loan?

Documents like financial statements, tax returns, bank statements, and business registration proofs are commonly required. A complete list of necessary SME Loan documents will be provided upon initiating the application process.

What is the minimum credit score required for SME loans?

While a score above 750 is generally considered strong, the minimum required score may vary based on the loan product and internal risk assessment.

How long does the SME loan approval process take?

The approval timeline varies, but it typically takes 7-10 working days after all required documentation is successfully submitted and verified.

Can startups apply for an SME loan?

Generally, most NBFCs require a business vintage of at least 3 years to qualify for a standard SME Loan. Startups that do not meet this criterion may explore specific government schemes or alternative financing options.

What is the difference between SME loan and business loan?

The terms are often used interchangeably in India. However, SME loan specifically targets Small and Medium Enterprises as defined by the government (based on investment and turnover criteria), while a business loan is a broader term for any commercial financing.

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