Working Capital Loans
Working Capital LoansWorking capital is essential for a business’s day-to-day operations, ensuring liquidity to cover expenses. Proper management offers benefits such as operational continuity, inventory optimization, efficient accounts receivable and payable, flexibility in responding to market changes, and overall cash flow stability. It plays a critical role in maintaining financial health and supporting both short-term and long-term business goals.
There are multiple types of working capital as mentioned below to cater your day-to-day business needs:
Types of Working Capital Loans
Types of Working Capital Loans
Cash Credit Facility:
This allows businesses to withdraw funds up to a certain limit, and interest is only charged on the utilized amount. It offers flexibility, as businesses can manage their cash flow by borrowing according to their needs.
Overdraft Facility:
Similar to cash credit, an overdraft facility allows businesses to overdraw from their bank accounts, up to a specified limit, enabling them to manage short-term financial needs and emergencies effectively.
Bank Guarantee:
In business transactions, a bank guarantee acts as a promise from the bank to cover a loss if a borrower fails to fulfill the terms of the agreement.
Line of Credit (LC) Facility:
A line of credit is a flexible loan that grants businesses access to a fixed amount of capital, which they can use whenever it's needed for business operations.
Foreign Currency Term Loan (FCTL):
This type of loan is available in foreign currency and is suitable for businesses involved in international transactions, helping in managing currency fluctuations and facilitating global trade.
Packing Credit Facility:
A short-term loan provided to exporters and suppliers to finance the purchase of raw materials for the production of goods for export.
Buyers Credit Facility:
This allows businesses to raise short-term funds to improve cash flow, finance imports, and manage payment terms with suppliers, enhancing business operations and growth.
Eligibility Criteria
- Age Range: 21-65 years
- Business Age: Minimum 3 years.
- Business Turnover: Minimum of Rs. 1 Crore.
Working Capital Loan Fees & Rates
Working Capital Loan Fees & Rates
While our interest rates differ based on the company's profile, we promise competitive rates tailored for you.
Required Documentation
- Additional documents: Passport-size photo, ID proof, address proof, financial documents, and ownership proof.
- Bank statement (Last 1 year)
- Partnership deed copy (if applicable)
- GSTR3B for last 1 year
- Business registration proof
- Company PAN card
- PAN & Aadhar card copies of the proprietor
- 3 years IT returns of company and individuals
For more documentation, our consultant will guide you based on
loan requirements.
