Short answer: L&T Finance starts slightly lower (10.5% against 10.99%) with fees up to 4% (Tata Capital: up to 5%) and accepts ₹15,000 income outside tier-1 cities and self-employed applicants. Tata Capital allows free part-prepayment of up to 25% and lends up to ₹35 lakh.
Last verified: 12 October 2026 from each company’s official website and, where marked, its Google Play listing. Rates and fees change; the lender’s Key Fact Statement (KFS) and loan agreement decide your actual terms. FundsTiger does not rank lenders.
L&T Finance vs Tata Capital at a glance
| L&T Finance | Tata Capital | |
|---|---|---|
| Type | RBI-registered NBFC (Upper layer) | RBI-registered NBFC (Upper layer) |
| Loan amount | Up to ₹30 lakh (calculator from ₹50,000) | ₹40,000 to ₹35 lakh |
| Interest rate | From 10.5% a year (salaried page: from 11% APR) | From 10.99% a year (reducing balance) |
| APR | Not published | Not published |
| Processing fee | Up to 4% + taxes (salaried page: up to 3%) | Up to 5% + taxes |
| Tenure | 12 to 72 months | Up to 6 years |
| Minimum income | ₹25,000 a month in tier-1 cities; ₹15,000 in tier-2 and 3 | ₹20,000 a month |
| Who can apply | Salaried and self-employed | Salaried (1 year in current job, 2 years total) |
| Age | 21 to 58 | 21 to 58 |
| Prepayment and foreclosure | Up to 5% + taxes on foreclosure or part-prepayment; no charge in the 3-day cooling-off period | Part-prepay up to 25% of the disbursed amount free; Tata Capital’s own FAQ cites 6.5% foreclosure within 12 months and 4.5% after |
| Product | Term loan (EMI) | Term loan; Hybrid Term Loan option |
| RBI-regulated lenders | L&T Finance lends directly | Tata Capital lends directly |
| On RBI’s digital lending app list | Yes: 1 RBI-regulated lender lists it; 1Cr+ installs, rated 4.7 | Yes: 2 RBI-regulated lenders list it; 50L+ installs, rated 4.4 |
| Also worth knowing | 3-day cooling-off period; Paperless; approval in minutes (claimed) | Hybrid option charges interest only on the amount used; CIBIL 725+ preferred |
Install counts and ratings are from Google Play, as recorded on RBI’s digital lending app list check of 5 October 2026.
What a ₹3 lakh loan over 36 months would cost
We costed the same loan on each lender’s advertised figures, using the standard reducing-balance EMI formula and adding 18% GST to fees where the lender quotes them before tax. The lowest advertised rate is usually for the strongest credit profiles; many borrowers are offered more.
| Lender | Scenario | Rate a year | EMI | Total interest | Fee incl. GST | Total cost |
|---|---|---|---|---|---|---|
| L&T Finance | Lowest advertised rate, highest fee | 10.5% | ₹9,751 | ₹51,026 | ₹14,160 | ₹65,186 |
| Tata Capital | Lowest advertised rate, highest fee | 10.99% | ₹9,820 | ₹53,527 | ₹17,700 | ₹71,227 |
Try your own numbers in our personal loan EMI calculator. For loans quoted only as APR, the APR already includes fees, so the total is an estimate.
Key differences
- Rate: L&T Finance from 10.5%; Tata Capital from 10.99%.
- Fee: L&T Finance up to 4% (3% on its salaried page); Tata Capital up to 5%.
- Prepaying: L&T Finance up to 5% + taxes; Tata Capital 25% free part-prepayment.
- Who can apply: L&T Finance salaried and self-employed; Tata Capital’s page lists salaried.
Which should you choose?
L&T Finance may suit you if you live in a tier-2 or tier-3 city, are self-employed, or want the lower fee.
Tata Capital may suit you if you plan to part-prepay or need more than ₹30 lakh.
Whichever you pick, compare the APR in the KFS you are actually offered, not the advertised starting rate.
Before you apply
- Find the lender’s name in the app and check it on RBI’s list of digital lending apps or our RBI-registered NBFC search.
- Read the Key Fact Statement (KFS) before you accept. It must show the APR, every fee and the total you will repay.
- Never pay a fee before the loan is disbursed. Regulated lenders deduct fees from the loan or add them to the EMI.
- Apply to one or two lenders, not ten. Each application is a hard enquiry on your credit report.
- Check that the EMI fits your budget with our FOIR calculator.
Want to see offers from several RBI-regulated lenders in one place?
Frequently asked questions
Does L&T Finance have a cooling-off period?
Yes. It states no prepayment penalty if you cancel within the 3-day cooling-off period after disbursal.
Which needs a lower income?
L&T Finance asks for ₹15,000 a month in tier-2 and tier-3 cities (₹25,000 in tier-1). Tata Capital asks for ₹20,000.
Are these lenders RBI-regulated?
The loans described here are given by RBI-registered NBFCs or banks named in the table. Check the lender named in your loan agreement on RBI’s digital lending app list.
Where do these figures come from?
From each company’s official website and, where noted, its Google Play listing, checked on 12 October 2026. Where a company’s own pages disagree, we show both figures.
Sources
- L&T Finance personal loan
- L&T Finance interest rate
- L&T Finance loan for salaried
- Tata Capital personal loan page
- Tata Capital on loan closure
Read more: L&T Finance app review · Tata Capital app review · L&T Finance lender profile · Tata Capital lender profile · All loan app reviews · Lender directory
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Disclosure: FundsTiger (Gatimaan Finance Advisors Pvt. Ltd.) is a loan marketplace and lending service provider for RBI-regulated lenders. Aparampaar Finance Pvt. Ltd. (Omozing), one of those lenders, is a related party of FundsTiger. This article is general information, not financial advice. Read your loan agreement and KFS before you decide.