Working Capital Loans For New Business
Trusted by over 5,000 businesses across 20+ cities and towns. Loans worth over 500 crores sanctioned so far.
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Helping Business Owners to get Business Loan from 1 crore & above only
Trusted by over 5,000 businesses across 20+ cities and towns. Loans worth over 500 crores sanctioned so far.
Working Capital Loans For New Business in 2023
Working capital loans are short-term loans that are easy to obtain and can be used for various purposes such as funding day-to-day operations, purchasing inventory, or paying salaries. They can be secured or unsecured and can help improve cash flow for small businesses. Any business may it be Manufacturing, Trading or Services is eligible for Working Capital Loan.
Most of the financial institutions across India consider firms/companies which are minimum 3 years old with audited Income Tax Returns for Working Capital Loans. But, since our mission is to EMPOWER MSME’s Financially irrespective of their number of years in business, our Working Capital Loan services are available for startups as well.
What is the Eligibility Criteria for Working Capital Loan?
Any business may it be Manufacturing, Trading or Services is eligible for working capital loans are eligible for Working Capital Loans
- Applicants should be 21 years and above
- Applicant with good credit score and repayment history
- The firm/company must have procured all the relevant statutory permissions and licenses to start with Business
What are the Benefits of Working Capital Loan?
- It helps to buy inventory as well as can be utilized for operational expenses like logistics, salary, utility Bills
- Based on the nature of translation, there are multiple types of Working Capital Loans
- Interest on Working Capital is charged on per day/amount utilization basis, hence saves costs.
- Working Capital Loan is also available without EMI options which reduces the burden on cash flows
What is the interest rate on working capital?
Interest rates offered for Working Capital Loans may vary depending on business requirements and the financial institution. It may also vary based on the credit facility and the end utilization. However average cost of interest for Machinery Loan ranges from 6% to 13% per annum.
What are the different types of Working Capital Loan?
Working Capital Loan comes in both Unsecured and Secured form. Further It’s been divided into Fund Based Limits and Non Fund Based Limits.
Fund Based Working Capital Loan:
- Cash Credit (CC)
- Machinery Term Loan (TL)
- Project Term Loan (TL)
- Export Packing Credit (EPC)
- Packing Credit Foreign Currency (PCFC)
- Bills Discounting (BD)
Non Fund Based Working Capital Loan:
- Letter of Credit (LC)
- Guarantee (BG)
What are the Documents Required for Working Capital Loan FOR MSME?
- KYC documents of the applicants along with the firm/company, such as PAN Card, Aadhaar, Udyam, Utility Bills (Water and Electricity Bills)
- Relevant Business Licenses
- Project Report/CMA Data
- Additional documents, as required by the financial institution
What about Working Capital Loan without Collateral Security for Startups MSME? (UNSECURED WORKING CAPITAL)
Under Government sponsored CGTMSE scheme, any MSME irrespective of number of years in business is eligible for Working Capital loan Without Collateral Security