Know the benefits of a working capital loan in growing your business and managing operational expenses.
✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now!
A working capital loan is a credit facility that helps with short-term funding to cover everyday business expenses and manage cash flow, particularly for SME/MSMEs, seasonal businesses and manufacturers. This facility helps businesses address immediate financial needs, like covering operational costs or managing seasonal fluctuations.
The day-to-day operations can include:
Purchase raw materials
Make advance payments to suppliers
Buy inventory/ raw materials
Fund accounts receivable if payments from debtors are delayed
Meet overhead expenses such as salaries, utility bills, and rent
Features and Benefits of a Working Capital Loan
Here are some benefits that will work in the favour of your business if you decide to go for a working capital loan.
No Collateral Requirement
You can get a working capital loan without pledging any collateral
Maximum Loan Amount
On Bajaj Markets, you can get up to ₹50 Lakhs without any collateral. The substantial sum allows you to cover various expenses, including payroll, inventory, leasing, machinery, storage, fleet, and m Read Moreore. Read Less
Quick Application and Approval
Enjoy a convenient and speedy application and approval process by sharing basic information. After the approval, you will get the funds within a few hours or days.
Flexible Withdrawals
With the flexi facility, you can have funds readily available to cover any unexpected or overhead costs. Moreover, you pay interest only on the withdrawn amount, not the total loan amount.
Minimal Documentation
You need to submit only the basic documents to get quick approval. All you need to do is meet the eligibility criteria to qualify for the loan.
While the exact criteria depend on the lender, there are some common requirements, such as:
The applicant should be at least 25 years old
The business vintage should be at least 3 years
Must have a credit score of 685 or above
Must have business ownership proof and other required financial documents
Must have no history of defaults
Trusts, NGOs, and MSMEs cannot apply
You may need to provide additional information for business verification purposes, such as audited P/L reports or Income Tax Returns. So, be sure to check the requirements before applying for a seamless experience.
Checking this list can help you ensure that you have everything you need. Here are some documents required for a working capital loan by most lenders:
Passport-size photographs
KYC documents
Relevant financial documents/P&L statements
Proof of business operations and vintage
Latest bank account statements going back at least one year
Remember, the lender may ask for additional documents before or after you submit the application. Ensure you submit all of them to get the funding you need. On Bajaj Markets, you can get a working capital loan without submitting a collateral. This allows you to meet your operational needs affordably.
The interest rate levied on a working capital loan is determined by several factors, such as:
Type of business
Business vintage
Business revenue
Credit score
On Bajaj Markets, you can get an interest rate starting at 14% p.a. Use the free EMI calculator to decide on the loan terms based on your eligibility and repayment comfort.
Let’s assume that you have a working capital loan of ₹5 Lakhs at 9.75% p.a. for a tenure of 3 years (36 months).
In this case, you will end up paying a total of ₹5,78,699 to the lender. Of this, ₹78,699 (13.6% of the total amount) will be the total interest paid.
Principal Borrowed |
₹5,00,000 |
Interest Rate |
9.75% p.a. |
Loan tenure |
3 years (36 months) |
EMI |
₹16,075 |
Total Amount Paid |
₹5,78,699 |
Total Interest Paid |
₹78,699 |
Disclaimer: This calculation is for information purposes only; the actual values may differ as per the policies of the lender.
Calculating the EMI manually can be tiring, and you may even end up miscalculating due to an inadvertent error. Instead, use the business loan EMI calculator on Bajaj Markets as many times as you want to try different tenures.
You can use it to calculate your working capital loan EMI and the total amount that you will be paying as interest to your lender. The calculator is easy to use and has an intuitive interface. What’s more, it helps you plan your repayment hassle-free and make smarter decisions.
How to Apply for Working Capital Loans on Bajaj Markets
You can apply for a working capital loan online by following these steps.
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Click on ‘CHECK OFFER’ on this page
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Fill in the digital form with your business details and proceed further
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Enter the loan amount and select a suitable tenure
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Submit KYC documents, such as your Aadhaar card, PAN card, voter’s ID, etc.
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The representative will get in touch with you for further steps
Reference of all T&C necessarily refers to the terms of the Partners as regards to pre-approved offers and loan processing time amongst other conditions.
FAQs on Working Capital Loans
How much working capital finance can one get? On what basis is the quantum decided?
You can get up to ₹50 Lakhs as a working capital loan through Bajaj Markets. The quantum of financing is decided based on the health of the business, revenue, and relationship with the lending partner.
What is an example of a working capital loan?
Acquiring financing for letter of credit, cash credit, overdraft facility, and invoice financing are some examples of a working capital loan. You can opt for any of these types of loans as per your business requirements.
What is the reason for taking a working capital loan?
These loans allow you to cover everyday operations and financial requirements. You can take a working capital loan to pay bills, vendors, rent for your office/warehouse/factory/store or to buy materials, and more.
What is the limit for a working capital loan?
The limit is usually up to ₹50 Lakhs. However, it also depends on the lender you choose and the working capital loan eligibility criteria set by them. Creditworthiness, business vintage, and finances are some factors affecting the maximum loan amount you can get.
