Boost Your Business with a Working Capital Loan
Working Capital Loan
Attractive Interest Rate
Customised Loans
Flexible Repayments
Minimal Documentation
Quick Approvals & Disbursals
Regular Reminders
Features & Benefits of Working Capital Loan
Key Benefits
- Short-Term & Long-Term Tenure: Flexible repayment options from 12 to 60 months, tailored to your business cycle.
- Financial Support During Difficulties: Manage cash flow shortages and maintain smooth operations.
- Collateral-Free Option: Unsecured loans available for eligible MSMEs through partner lenders.
- Stability in Lean Periods: Maintain Financial Security During Seasonal Fluctuations.
- Flexible Usage: Use funds for raw materials, salaries, vendor payments, or business expansion.
- Loan Amount: Finance up to 100%, based on eligibility and lender terms.
- Fast Processing: Quick approval and disbursal with minimal documentation.
- Digital Application: Apply online and track loan status easily.
- No Collateral Required: Collateral-free options for smaller loans.
- Competitive Interest Rates: Starting from 10.75% p.a., depending on credit profile.
- Flexible Tenure: Repayment options between 12 and 60 months.
- Transparent Charges: No hidden costs; all fees disclosed upfront.
- Easy Repayment Options: Convenient EMIs aligned to your cash flow.
Types of Working Capital Loan
1
Overdraft Facility
A credit facility linked to your current account, allowing withdrawals beyond your balance up to a limit. Interest is charged only on the amount utilized, ideal for sudden short-term needs.
2
Cash Credit Facility
A revolving credit limit sanctioned against assets or receivables, helping businesses finance working capital expenses like raw materials, wages, and utilities. Interest applies only on the withdrawn amount.
3
Invoice Financing
Borrow funds against unpaid invoices, providing quick liquidity without waiting for customer payments. Perfect for companies with long credit cycles.
4
Trade Credit
Credit extended by suppliers, allowing businesses to purchase goods or services now and pay later. Helps reduce immediate financial pressure.
5
Bill Discounting
Sell trade bills or post-dated cheques to financial institutions at a discount for instant funds. Commonly used in bulk trading and B2B transactions.
Working Capital Loan Eligibility and Documents
Eligibility Criteria for Working Capital Loan
Who Can Apply?
- Business owners, entrepreneurs, and professionals
- Proprietorships, partnerships, private/public limited companies, and MSMEs
- Traders, manufacturers, service providers, and transport operators
Age Criteria
- Applicants must be between 21 to 65 years
- Age should not exceed 65 years at loan maturity
Business Stability
- Minimum 3 years of business operations
- At least 2 years of profitability in financials
Financial Criteria
- Minimum annual turnover of ₹10 lakh (higher loans may require higher turnover)
Restrictions
- Businesses in restricted categories (NGOs, trusts, speculative businesses, etc.) are not eligible
Documents Required for Working Capital Loan
Basic Business Proof
- Business registration documents (GST, Shop Act, Partnership Deed, etc.)
- Proof of at least 3 years in operation
Financial Documents
- Last 2 years’ audited financial statements
- Last 6–12 months’ bank statements
- Loan repayment track record (if applicable)
Additional Documents
- KYC of owners/directors
- Collateral documents (only for secured loans)
- Any additional documents requested during processing
How to use Working Capital Loan EMI Calculator
Estimate your monthly installments by:
- Entering the loan amount, interest rate, and tenure
- Clicking Calculate
- Viewing EMI, total interest, and repayment schedule
- Adjusting tenure if needed
- Considering extra costs
- Confirming budget compatibility with the lender
Fees and Charges for Working Capital Loan
| Particulars | Charges |
|---|---|
| Processing Fees | Up to 2% of loan amount |
| Interest Rates | Starting from 10.75% p.a. (subject to profile & loan type) |
| Loan Tenure | 12 – 60 months |
| Pre-closure Charges | 2–4% of principal outstanding (waiver may apply in special cases) |
| Installments | Easy monthly EMIs |
| Other Charges | Documentation, verification, NOC, duplicate statement charges may apply |
Working Capital Loan Reviews
Rohan Mehta
Priya Sharma
Arvind Khanna
Meera Joshi
Working Capital Loan FAQs
A Working Capital Loan is a short-term business loan provided by banks/NBFCs to cover everyday operational expenses such as inventory, payroll, and cash flow gaps. Taurus Financial Services helps you connect with the right lenders.
Most working capital loans are collateral-free. Some lenders may request security in certain cases.
Repayment tenure typically ranges between 12 to 36 months (1–3 years), offering flexible EMIs.
Business owners, self-employed professionals, transport operators, and entrepreneurs with at least 12 months of stable business operations and a minimum turnover of ₹75,000 in the last three months can apply.
Business proof, financial statements, bank statements (last 6 months), and additional documents as requested by the lender.
With proper documentation, approval and disbursal usually happen within a few working days through partner banks.
Yes. Most lenders allow prepayment or foreclosure, often with zero or minimal charges for unsecured loans.