L&T Finance offers two main types of unsecured working capital solutions for businesses:

🔹 1. Unsecured Business Loan

This is a fixed-term loan offered without collateral to meet business needs like expansion, equipment purchase, stock, or working capital.

✅ Key Features:

Loan Amount: ₹5 lakhs to ₹50 lakhs (may vary based on profile & location)

Tenure: 12 to 60 months

Collateral: No security or collateral required

Interest Rate: Usually 16%–24% per annum (reducing), based on business profile and financials

Processing Fees: Typically 2%–3% of loan amount

Repayment: EMI-based (monthly)

Eligibility:

Proprietors, partnerships, Pvt Ltd, LLPs

Minimum turnover and business vintage (usually 2–3 years)

Good banking and ITR history

🔹 2. Unsecured Business OD (Overdraft Facility)

This is a flexible credit limit extended to a business where interest is charged only on the amount utilized.

✅ Key Features:

OD Limit: ₹5 lakhs to ₹50 lakhs+

Tenure: Generally 12 months, renewable annually

Collateral: Unsecured (no property or security needed)

Interest: Charged only on the amount utilized, not the full limit

Flexibility: Withdraw and deposit money anytime within the limit

Repayment: Flexible (interest is paid monthly, principal as per usage or at renewal)

Best For:

Businesses with fluctuating cash flow

Seasonal working capital needs

📑 Common Documents Required:

PAN, Aadhaar (Applicant + Co-Applicant)

Business registration documents

GST Certificate & GST returns (last 12 months)

ITRs (last 2 years)

Current & savings account bank statements (12 months)

Office & residence electricity bill

Property ownership proof (if any)

🏦 L&T Finance Preference:

Businesses with good banking, consistent turnover

Owned office/residence premises preferred

Clean repayment track record (no defaults)