Working Capital Loan India

A Working Capital Loan is a loan which helps the businesses to finance the day to day expenses like purchasing inventory, procurement of raw materials, paying for overhead costs like rent, salaries, paying suppliers in advance, maintaining a healthy cash level etc.

Financial urgency is a part and parcel of the businesses. To overcome these, working capital loans come handy. These loans are a dream come true for small and medium enterprises to cater to their financial requirements and run their day to day business without having to worry about the funds.

Working capital is calculated by the following formula:

Working Capital = Current Assets – Current Liabilities

Working capital loans are the funds to meet the immediate and short-term needs of your company or business. In times, when there isn’t much liquid cash to finance the daily operational requirements, working capital loans comes handy.
 

Who needs working capital loans?
 

Which business doesn’t need an extra dose of cash? Working capital loans in India is a great source of capital for SMEs and for businesses with seasonal sales who need cash in hand to meet the daily operational costs.

KEY FEATURES:

Age: 21 years to 65 years
Loan Amount: Dependent on applicant’s profile
Tenure: 12 month -48 months
Processing Fee: Up to 2% of the loan amount
Interest Rate: Variable from bank to bank (usually 16 % onwards) 
Collateral Security: Not required
Offered to: Pvt. & Ltd. Firms, MSMEs &Self-employed
Interest rate type: Fixed
Business tenure: Min. 3 years in business with profit

Why are working capital loans needed?
 

Ups and downs are part of businesses. To overcome loss or stagnation in businesses, working capital loans becomes a need. These loans are usually given to MSMEs and not to the big corporate companies for meeting out the daily operational requirements. These loans are mostly unsecured in nature. They are often availed by businesses in the field of manufacturing, retailing, distribution, restaurants, stocking, services etc.