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A Working Capital Term Loan (WCTL) provides a fixed sum to meet short-term business expenses. Get funding of up to ₹80 Lakhs, interest rates starting from 13.50% p.a., and repayment tenures of up to 96 months to manage cash flow and operational requirements.
Last updated on: Oct 14, 2026
Working capital allows you to invest in strategic inventory purchases and expand your marketing reach. You can seize unexpected business opportunities with access to capital. A working capital term loan bridges these short-term gaps. Use the funds to clear dues and capitalise on growth opportunities ahead of competitors.
A Working Capital Term Loan (WCTL) is a business financing facility designed to meet short-term operational and liquidity requirements. Unlike a conventional term loan, which is generally used for long-term investments such as equipment purchases or business expansion, a WCTL focuses on day-to-day working capital needs.
Under this facility, businesses receive a fixed loan amount that can be used to manage inventory purchases, salary payments, supplier dues, marketing expenses, and other operational costs. The loan is repaid through scheduled instalments over an agreed tenure.
A WCTL in banking helps bridge temporary cash flow gaps that arise due to differences between incoming receivables and outgoing payments. It enables businesses to maintain smooth operations, respond to seasonal demand fluctuations, and take advantage of growth opportunities without disrupting working capital cycles.
A working capital term loan combines accessible funding with flexible repayment options, making it a practical solution for businesses seeking support for short-term operational requirements. Key features and benefits are outlined below:
| Feature | Details |
|---|---|
Loan Amount |
Funding of up to ₹80 Lakhs for various business requirements |
Interest Rate |
Interest rates starting from 13.50% p.a. |
Repayment Tenure |
Flexible repayment periods of up to 96 months |
Quick Disbursal |
Funds may be disbursed instantly, subject to lender policies |
Collateral Requirement |
Available without collateral through participating lenders |
Transparent Charges |
Applicable fees and charges are disclosed upfront |
Online Application |
Fully digital application process with minimal paperwork |
Cash Flow Support |
Helps manage inventory, salaries, marketing expenses, and vendor payments |
Business Continuity |
Assists businesses in addressing temporary working capital shortages |
Disclaimer: The mentioned details are subject to change at the lender’s discretion.
This credit facility is a strategic tool that helps you unlock the true potential of your business. The following are some of the common reasons why companies take working capital term loans.
A working capital term loan can empower you to purchase raw materials in advance. This ensures you can capitalise on opportunities without letting stock shortages hinder your growth.
For businesses with seasonal sales cycles, maintaining regular cash flow is a challenge. This loan offers a financial safety net during seasonal dips, helping manage fluctuations in operational costs.
A limited inventory can restrict your ability to meet customer needs. This loan can be the key to expanding your inventory. It enables you to offer a wider selection of products, cater to larger orders, and tap into new markets.
A working capital term loan acts as a financial buffer during unforeseen events. It allows you to handle such expenses efficiently, whether it is equipment repairs, sudden surges in material costs, or other disruptions.
A working capital term loan helps you manage short-term business needs by providing timely funds. The process typically works as follows:
| Stage | What Happens |
|---|---|
Application Submission |
The applicant submits the loan application along with the required business and financial documents |
Lender Assessment |
The lender evaluates the business profile, credit history, turnover, cash flow, and repayment capacity |
Loan Sanction |
Upon approval, the lender determines the sanctioned amount, interest rate, and repayment schedule |
Fund Disbursal |
Funds are credited to the approved bank account and can be utilised for business operations |
Repayment |
The borrower repays the loan through scheduled EMIs during the selected tenure |
Note: The application, approval, disbursal, interest rate, and repayment terms of a working capital term loan may vary based on the lender’s policies, eligibility assessment, and documentation requirements. Actual timelines are subject to verification and approval by the lender.
Eligibility requirements may differ across lenders. However, applicants generally need to satisfy the following criteria.
| Parameter | Requirement |
|---|---|
Nationality |
Indian citizen |
Age |
21 years or above |
Credit Score |
650 or more |
Business Vintage |
Typically 6 months of business operations |
Business Type |
Registered business entity |
Annual Turnover |
As per lender-specific eligibility requirements |
Note: Actual eligibility criteria may vary depending on the selected lender and loan product.
Lenders generally request documents from the following categories during the application process:
PAN Card
Aadhaar Card
Passport
Voter ID
Driving Licence
Business registration certificate
GST registration documents
Shop and Establishment certificate, where applicable
Partnership deed, LLP agreement, or incorporation certificate
Recent bank account statements
Income Tax Returns (ITRs)
GST returns
Audited financial statements
Profit and loss statements and balance sheets
Note: Documentation requirements may vary depending on the lender and applicant profile.
You can apply for a working capital term loan online by following these steps:
Click here to start the loan application process
Enter the required business and personal details
Select the preferred loan amount and repayment tenure
Upload the required KYC and business documents
Submit the application and wait for lender evaluation and approval
Following approval, the sanctioned amount is disbursed according to the lender's process and timelines.
Although the terms are often used interchangeably, a working capital term loan and a working capital loan can differ in structure and repayment.
| Parameter | Working Capital Term Loan | Working Capital Loan |
|---|---|---|
Structure |
Fixed lump-sum disbursal |
May be structured as revolving or non-revolving credit |
Disbursal |
One-time disbursal |
Can be provided through multiple working capital facilities |
Repayment |
Fixed EMI-based repayment schedule |
Repayment structure varies by facility type |
Tenure |
Predetermined tenure |
May vary across products |
Usage |
Short-term operational expenses |
General working capital requirements |
Borrowing Pattern |
Fixed borrowing amount |
Flexible depending on product structure |
Note: The features, structure, repayment terms, and availability of working capital financing facilities may vary across lenders and loan products. Borrowers should review the applicable terms and conditions before making a financing decision.
This credit facility often helps businesses cover the time difference between accounts payable and accounts receivable. The need for these loans is felt more in seasonal businesses. This is because such businesses experience peak seasons with high cash inflows, followed by periods of reduced or irregular income.
They generally rely upon WCTLs to remain operational throughout the year. Check out a real-world example of a business needing working capital term loans:
Consider a business specialising in handcrafted Diwali lights
It manufactures clay diyas, intricate paper lanterns, and vibrant LED string lights
A significant portion of their income arrives after Diwali
But they have to incur significant expenses well in advance
They require capital for purchasing raw materials, hiring temporary staff to meet production demands, and stocking up on inventory
This creates a cash flow gap that can hinder their ability to capitalise on the peak Diwali season
They need a working capital term loan to keep their business operational before the Diwali season
With the loan, the business can maximise production capacity, maintain inventory levels or seize growth opportunities
Getting a WCTL can help manage your business operations seamlessly, as you can use the funds to cover day-to-day operational expenses. Compare the interest rates offered by various lenders and choose one that best fits your requirements.
Reviewer
In banking, the full form of WCTL stands for working capital term loan. It refers to a loan structured to meet the short-term operational requirements of a business.
The maximum tenure of a working capital term loan is up to 96 months on Bajaj Markets. However, the actual tenure may vary based on the lender’s policies and the applicant’s credit profile.
The formula for a working capital term loan is:
Net Working Capital = Current Assets − Current Liabilities
This calculation helps identify the net working capital needed after accounting for existing liabilities and available credit limits.
To be eligible for a working capital term loan on Bajaj Markets, meet the following criteria:
Be an Indian citizen aged 21 years or above
Have a CIBIL score of 650 or higher
Have 1 to 3 years of business experience
Your business must be a registered entity with a minimum annual turnover of ₹1 Lakh
Interest rates on a working capital term loan start from 13.50% p.a.. The final rate offered may depend on factors such as business vintage, annual turnover, and credit profile.
Working capital term loans available through Bajaj Markets can be offered without collateral. However, security requirements may vary depending on the lender and loan amount.
A WCTL provides a fixed lump-sum amount that is repaid through scheduled instalments. An overdraft is a revolving credit facility where interest is generally charged only on the amount utilised.
Eligible borrowers can obtain funding of up to ₹80 Lakhs. The final sanctioned amount is determined based on factors such as business turnover, repayment capacity, and working capital requirements.
Most lenders require a minimum business operating history before approving a working capital term loan. New businesses may need to explore lender-specific startup, collateral-free, or government-supported financing options.
Processing fees vary across lenders and are usually charged as per the applicable loan policy. GST and other statutory charges may apply wherever applicable.
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