Faqs - L&T Finance

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What is the average cost of processing fees for SME Loans?

Processing fees for SME Loans at L&T Finance 3% on sanctioned amount + applicable taxes.

How are foreclosure charges calculated for SME Loans?

SME Loan foreclosure charges vary based on the loan tenure. For loans foreclosed within 6 months of disbursement, a 10% charge applies. After 6 months, the charge is 5%, both calculated on the outstanding loan amount, plus applicable taxes.

Is it possible to negotiate business loan fees with lenders?

Yes, you may get a reduced fee with a strong credit score.

Are there any penalties for repaying my SME Loan early?

Yes, prepayment or foreclosure charges apply, 2% plus applicable taxes on the pre-payment amount.

Can I reduce my loan fees by choosing a secured loan over an unsecured loan?

Yes, secured loans generally have lower processing fees and interest rates than unsecured loans.

How do SME Loan fees impact my business's cash flow?

High fees increase borrowing costs, affecting your cash flow and reducing funds available for operations.

Are business loan fees refundable?

Most fees, such as processing charges, are non-refundable.

Can I negotiate the foreclosure charges for an SME Loan?

You can contact our customer care to know if you can negotiate foreclosure charges.

How can I avoid unnecessary SME Loan charges during application?

Read the terms carefully, clarify all costs upfront and avoid add-ons unless required.

Do loan repayment terms impact SMEs' overall fees and charges?

Yes, longer tenures may increase the total interest paid, while shorter tenures could involve higher EMIs but lower overall costs.

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