About Working Capital Loan

A working capital loan allows you to meet fund requirements for the regular operations of your business. These types of loans may be used for the following purposes

  • Purchasing raw materials

  • Making advance payments to suppliers

  • Buying inventory

  • Funding accounts receivables if payments from debtors are delayed

  • Meeting overhead expenses such as salaries, utility bills, and rent

Who may need a working capital loan?

Small and medium enterprises (SMEs) often have fund limitations and a working capital loan is useful to meet these needs. Some companies have a seasonal or cyclical business and have no stability in sales during the entire year may opt to avail working capital loans to meet their regular operational expenses.

Cyclical businesses manufacture their products during the off-season. The majority of their revenues come through sales during the peak season. Therefore, during the remaining year, cyclical businesses require funds to ensure the smooth operations of their companies.

Uses of working capital loans

  • Manages sales fluctuations

  • Offers flexibility to take advantage of potential business opportunity

  • Provides a cash cushion

  • Helps to stabilize and boost cash flows

  • Offers the funds needed to fulfill bulk orders

 Features and Benefits of Working capital Loan

Business Loan for Working Capital have several features as follows:

  • Higher loan amount of up to INR 30 lakh is available to ensure companies do not face any problems in running their operations due to lack of funds

  • Flexibility in drawdown and repayment provides a smart and convenient way to manage business’ cash flows; interest is levied only on the amount used and this helps to reduce the Equated Monthly Installment by up to 45%

  • Lenders offer competitive and affordable business loan interest rates ensuring you do not have any difficulty in servicing the EMI in a timely manner

  • The eligibility criteria are easy to meet and documents required while applying for the loan are also minimal, which ensures a quick, smooth, and easy approval and disbursal process

  • Financial institutions provide online access to the loan account that enables borrowers to check all details through the portal, making it easier to manage the loans

Also read about how to use working capital loans

How do you calculate working capital requirement?

A working capital helps the business to operate smoothly and meet all its short-term financial obligations. Working capital can be used to meet daily expenses of the business and it is calculated by using the current ratio, i.e., current assets divided by current liabilities. If the ratio is above 1, it means that the current assets exceed liabilities. Therefore the higher the ratio, the better it is for the business.

Working capital is calculated by using the current ratio, which is current assets divided by current liabilities. A ratio above 1 means current assets exceed liabilities, and generally, the higher the ratio, the better.​

Current Ratio= Current Assets/Current Liabilities.

What is the interest rate for working capital loan?

The working capital loan offered at Finserv MARKETS are flexi Interest-only loans, wherein the monthly instalments consist of only interest, with principal payable at the end of the tenor

What is the eligibility criteria for working capital loan?

The eligibility criteria for working capital loan is mentioned below:

  1. You must be between 22-55 years of age

  2. Your business should be in operations for at least 3 years

  3. Your business’ income tax returns must have been filed for the same period

  4. In case your annual turnover last year was higher than Rs.1 crore, your financial statements would need to be audited by a CA

How to apply for a working capital loan?

You can apply for a working capital loan online from the comfort of your home. All you have to do is fill an online application form, specify loan details and upload the required documents. Once the loan application is reviewed, the lender will disburse the loan amount within 24 hours.  

Several lenders provide pre-approved offers that simplify the procedure. Additionally, pre-approval further reduces the time when borrowers actually need to avail the loan. To check the eligibility and determine the estimated EMI on the borrowed amount of unsecured business loan for working capital, borrowers may use an online business loan calculator. Individuals simply need to input the amount, tenure, and the interest rate to determine the estimated EMI.

Check your eligibility here and get a pre-approved working capital loan today.

You can also avail a mudra loan for women and enjoy lower interest rates.

Business Loan for Working Capital Reviews

Business Loan for Working Capital Reviews

4out of 5

9 reviews

Best Interest Rate

Bajaj Finserv working capital loan has been incredibly helpful to our company by providing a line of credit for our continued growth. At Finserv MARKETS you can avail the best business loan at attractive interest rates and added benefits.

Flexible Repayment Options

The working capital loan at Finserv MARKETS offered flexibility in drawdown and repayment by providing a convenient way to manage my business’ cash flows easily. I would definitely recommend getting a loan with them if you want to avail an online business loan.

Minimal Documentation

The eligibility criteria for working capital loan was quite easy to meet and documents required while applying for the loan were also minimal with smooth, and easy approval and loan disbursal process. I am happy with the business loan services provided by the team.

Instant Loan Disbursal

With the help of working capital loan I was able to operate my business smoothly and meet all the short-term financial obligations. The online business loan application process at Finserv MARKETS was smooth and easy and I was able to avail the loan amount with ease.

Working Capital Loan for Entrepreneurs

If you are entrepreneur looking to avail funds for expanding your business, you must certainly go ahead with business loan available at Finserv MARKETS. I recently applied for a working capital loan at Finserv MARKETS to manage the daily operations of my business. I must say that I made the right choice, couldn’t have asked for a better service.

Attractive Business Loan Interest Rate

I applied for a business loan at Finserv MARKETS and I am extremely happy with the overall service I received. One of the key benefits was the attractive business loan interest rate. It helped me lower the repayment burden significantly.

Flexible Business Loan Repayment Tenure

I recently availed an unsecured business loan of Rs. 30 lakhs at Finserv MARKETS. I was able to choose a repayment tenure as per my convenience. Moreover, I could also get an estimate of the monthly installment by using an online business loan EMI calculator.

Instant Loan for My Business Operations

The business loan eligibility at Finserv MARKETS is very flexible and simple. Due to my high credit score, I was easily eligible for a business loan amount of Rs. 30 lakhs. I received the money instantly and this helped me carry out my business operations without any hindrance.

Affordable Business Loan Interest Rates

Availing working capital loan is one of the best ways to meet financial requirements of the business. I could easily avail the desired loan amount at Finserv MARKETS at a very competitive business loan interest rate. Couldn’t have asked for anything better.