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L&T Car Finance
L&T Finance was established in the year 1994, it is a subsidiary of L&T financial services. This wing offers solutions to individuals, SMEs, Corporates. It also provides agricultural insurance solutions in rural areas. Further, L&T finance is engaged in providing financial assistance in buying home, car and car insurance.
L&T finance provides car loans to buy various types of cars including but not limited to hatchback, sedan, SUVs, MUVs, commercial transportation vehicles etc. The specifics with respect to features, eligibility and documentation are similar to that of other car loan lenders. However, this article is a deep dive into understanding the key aspects of L&T car finance.
Features and benefits of L&T finance car loan
The features and benefits of L&T finance car loan are similar to that of its competitors, however, the brand L&T reckons best-in-class services and product range. Here is an overview of the features of L&T car finance –
- Quantum of loan extended – The quantum of loan extended is up to 95% of the value of the car. This is especially significant when we consider the ex-showroom prices of luxury / sedan cars which come at very expensive price tags. In many cases the accessories and gadgets are also included as part of the loan extended. The minimum loan extended is Rs. 1 Lakh
- Loan tenure – The loan tenure can be between 12 months – 60 months, they also provide the flexi – payment option. The borrower is allowed to swap loan repayment tenure subject to charges. The longer tenure would help the borrower pay his EMIs conveniently over the long horizon.
- Loan processing – The loan processing is methodically streamlined to ensure that technology is leveraged to optimal extent. This in turn brings in the much-required operational efficiency. Thereby, the entire process is easy, convenient and logistically aligned from the customer’s perspective.
- Customized solutions – L&T Finance has consistently strived to provide the best service to its esteemed customers. Holding this principle in true spirit, the solutions are customized to suit the needs and requirements of the clients.
Eligibility for L&T car finance
The eligibility criteria for L&T car finance is pretty straight forward with minimal restrictions. The key aspects pertaining to eligibility are tabulated below –
| L&T Car finance | |
|---|---|
| Minimum and Maximum Age | 25 yrs – 65 yrs |
| Type of employment | Salaried, self-employed, company |
| Minimum income | Varies based on type of employment |
| Minimum monthly income | Rs. 25,000 per month |
| Quantum of loan extended | 75% to 95% (ex-showroom price) |
| Debt to Earnings | Lower existing EMI, higher chances of eligibility |
Based on the eligibility, the potential borrower can accumulate the documents and submit the same along with the application form to check if loan approval can be granted based on this documents / eligibility.
Documentation required for L&T car finance
The documentation process is considered the most important of all the steps in loan processing. The representative from dealers end or L&T finance will guide you through the entire process. If the documents are aligned properly alongside a fully filled loan application, the chances of loan approval and disbursement is high. The documents required for salaried class and self-employed / company vary slightly, the same has been tabulated below as per requirement –
| Residence Proof | Passport, Lease Agreement, Telephone bill, Utility Bill, Bank Statement (both salaried and self-employed / company applicants) |
| Age Proof | PAN, Passport, Aadhar card, Voter Id, any other document issued by GoI (both salaried and self-employed / company applicants) |
| Identity proof | Salaried applicant - PAN, Passport, Aadhar card, Voter Id and an Employee Id issued by the Government of India Other applicants - Passport, PAN Card, Driving License, Sales Tax registration Certificate |
| Additional documents for salaried applicants | Last 3 months’ salary – slips Form 16 or Income tax returns |
| Additional documents for self-employed /company applicants | Last 3 years ITR with computation of Income Last 3 years CA certified / Audited Balance sheet and Profit and Loss Account |
L&T car finance interest rates
The interest rates and charges pertaining to loan processing / repayment are in line with the market standards. The interest rates are typically decided based on the applicants’ credit score, credit history, tenure of loan, quantum of loan, vehicle chosen and prevailing market interest rates. The EMI is calculated as a function of quantum of loan, tenure, interest rate.
L&T used car finance interest rates
The interest rate for used cars tends to be higher compared to interest rates extended on new cars. Typically, the loan type is monthly reducing balance with an interest rate of 16% - 17%. The processing fee charged is in line with new car loan processing rates which is 2% of the loan value. The tenure of the loan can be between 1 year to 5 years. Similar to all other types of car finance / loans, there is no requirement of guarantor in the case of loan extended for used cars.
Fees and other charges pertaining to L&T Car finance
As in the case of any other loan, there are certain fees and charges applicable on L&T car finance as well. The loan processing fee is 2% of principle amount, which is standard for all types of car loans financed by L&T finance. The payments can be made through post – dated cheques, Paytm, online banking etc., Any default in payment will be penalized. There are pre-closure and partial repayment charges applicable at 2% of outstanding loan amount + Goods and services tax (GST). The entire loan processing is transparent, the charges are mentioned upfront, there are no hidden charges. L&T finance reckons trust and integrity as its high order principle which reflects in the way they conduct their business. Hence, the customers are usually extremely satisfied in their dealings with L&T car finance.
What are the benefits of availing L&T car finance?
L&T car finance uses a very methodical approach to the entire loan processing cycle. It offers easy, convenient and hassle-free loan processing and disbursement. The potential buyer has to first select the car he / she intends to buy, after conducting a due-diligence and finalizing on the right car, the process to ascertain eligibility of loan with L&T finance has to be initiated. Once the eligibility has been established, the potential borrower has to fill out the loan application and submit it along with the required documents including passport size photos. This can be done either physically with the dealer or any outlet of L&T finance or by means of uploading soft copy of filled application form / documents on the website. By using the virtual route, the customer will get an e-approval via email. The representative will however review the original documents before loan is disbursed.
On loan disbursement, the car is delivered to the borrower, the copy of vehicle registration, insurance copy and invoice are retained at the lenders end. The borrower will start his / her EMI payment while the car is at his / her disposal.
There are some specific advantages of availing L&T car finance, such as the flexibility to swap the loan tenure (subject to charges), longer tenure for easy repayment, higher quantum of loan, availability of loan for a wide variety of personal and commercial vehicles. Apart from all these, the fact that L&T finance is extremely transparent about its entire loan processing and is evidenced from the fact that it remains one of the most preferred financiers in the country.
Owning a car of your preference is no longer a far-fetched dream, it can be easily achieved by availing a loan from L&T finance which offers car finance for a wide variety of cars. Further, the loan – to value offered by L&T finance is significantly high as compared to some of its competitors. L&T finance remains one of the favorite financiers in the car loan segment given the integrity and transparency in operation.
Summary
- L&T Finance offers car loan for personal and commercial vehicles
- The loan – to- value offered by L&T finance is significantly higher than that of its competitor
- Eligibility criteria for car loan is minimal in the case of L&T finance
- Documentation and loan processing are simplified to ensure that the customer is able to complete the entire process in a hassle-free manner
- Transparency and integrity are two highly valued principles of L&T finance which has made them the most preferred car lenders in the country
Frequently asked questions
1. What is the minimum and maximum loan amount that can be availed from L&T finance?
Minimum loan amount is Rs. 1 Lakh and maximum is up to 95% of the ex-showroom price of the car.
2. Do car loans require additional mortgage or guarantor?
No, car loans do not require additional mortgage or guarantor. The asset purchased becomes the underlying mortgage in this case.
3. What are the various modes of EMI payments available with L&T car finance?
EMI payments can be made by means of post-dated cheques, online / net banking or ECS (electronic clearing service).
4. After the documents are submitted, how long will the loan disbursal take?
The loan disbursal should take not more than 48 hours after the documents and loan application is submitted.
5. Can I view my Loan schedule online?
Yes, there will be a unique login and password extended which will enable the borrower to generate the latest statement which provides data on payment schedule, outstanding loan etc.