Working Capital Loan Fees & Interest Rates

Customized Interest RatesFair, Transparent – starting from 1.25% per month
Processing Fees2-5%
Loan Tenureup to 3 years
Pre-closure ChargesPre-closure charges are applicable as per the lender’s policy
Eligibility Criteria> ₹ 90,000 turn over for 3 Months
Loan Amount₹ 50,000 – ₹ 2 crore
InstallmentsFlexible Monthly / Bi-weekly

*Based on the health of your business, revenues and annual turnover

**Pre-closures are only allowed after the first EMI is paid in full

To facilitate an easy assessment of your monthly financial obligations, consider utilizing our user-friendly Working Capital Loan EMI calculator.

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Eligibility Criteria

  • Business operational for more than 3 months.
  • Minimum turnover of ₹90,000 in the last 3 months.
  • Business not listed under the blacklisted/excluded category for SBA finance.
  • The business location should not be in a negative list area.
  • Trusts, NGOs, and charitable institutions are ineligible.

Documents Required

  • Proof of business operation for over 3 months.
  • Financial statements showing a turnover of ₹90,000 for the last 3 months.
  • Proof that the business is not blacklisted or excluded for SBA finance.
  • Verification of business location outside negative list areas.

Benefits of Working Capital Loan

  • Short-tenured Loan: With terms from 1 to 36 months, it’s perfect for covering immediate needs without long-term debt.
  • Handle Financial Difficulties: Provides a cushion during cash flow shortages, allowing your business to continue operations smoothly.
  • No Collateral/Security Required for Unsecured Loans: Keeps your assets safe while you access the funds needed.
  • Helps in Lean Periods: Offers financial stability during seasonal sales fluctuations, ensuring business continuity.
  • Spend at Your Discretion: The funds can be used for any business need, offering complete flexibility in managing your operations.

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Comparative Analysis of Do’s and Don’ts When Considering a Working Capital Loan

AspectDoDon’t
Evaluating AlternativesAssess other working capital management strategies like reducing expenses and optimizing invoices.Jump straight to applying for a loan without attempting to improve financial management through internal measures.
Strategic UtilizationHave a detailed plan for the utilization of loan funds, specifically for short-term needs.Borrow without a specific plan, risking the funds on inappropriate expenses or long-term investments.
Assessing Business BenefitsConsider the loan’s benefits to your operation’s efficiency and ensure ability to service the loan.Apply for a loan without evaluating your business’s revenue adequacy for repayments, especially if the business is relatively new.

Frequently Asked Questions:

The application process is completely online. You can create a free Lendingkart account here or use our mobile app for applying for a small business loan.

You can avail a loan of minimum ₹ 50,000 and maximum ₹ 2 crore for a maximum period of 36 months. The quantum is decided based on your business’s health, revenues and relationship with Lendingkart Finance.

All our working capital loans are unsecured and do not require a security.

If your business satisfies our eligibility criteria and all your documents are in order, the loan will be disbursed to your account within 3 days.

Even if you have CC or OD limit, you can have the evaluation done (there are no charges for the evaluation) so that in case of contingency, you can get funds within 24 hours. Also, in case of exhaustion of CC/OD limit, our funds can be utilized.

Our product can act as a “standby source of funds” in the sense that you can use them for a month or so, or as and when needed.

Working capital loans are short-term loans, meant for purchasing inventory and maintaining day-to-day operations. Normally, we offer loans for a period of 1 to 24 months. However, a further extension of 12 months (total 36 months) can be availed on a case to case basis.

Term loans are generally given for 3-10 years’ duration and are meant for purchase of capital assets. Working capital loan is primarily for inventory and is generally sanctioned for a period not more than 1 year.

It is a score assigned by Credit Bureaus, based on your business’s financial history. It gives us an idea about the credit worthiness of your business and plays a crucial role in determining interest rates.

Yes. We will check your CIBIL rating.

We take PDCs as a security only in case of default. We will cancel and return the PDCs at your instruction once the cycle is over.

We have rescheduling and late payment charges which are 0.1% of the principal amount per day for the number of days of delay. Late payment charges will be levied on the sanctioned/disbursed amount and not the outstanding amount.

NACH is a facility like ECS wherein the amount will be debited from client’s account on the due dates. This will also eliminate the need for creating standing instructions at client’s end. For the first instalment or till the time, NACH is registered with the bank, client will be required to pay the instalments through RTGS/NEFT/IMPS. Once the NACH is registered with the bank, client will get a mail and a call to this effect and thereafter, instalments will be credited to our account through NACH.

No, we do not charge for foreclosure. Only the interest of current month in which foreclosure is done, will be charged. For example, if the loan is of 3 months duration and foreclosure is done in middle of second month, then only the interest for second month will be payable.

Yes, we do. In such cases, we try to understand the nature of services provided by the client and the reliability of their customer base. We also do an assessment of their working capital needs before processing the loan application.

Yes, you can apply for new product while your current loan with us is running, subject to satisfactory credit evaluation.

Cities We Serve

Delhi NCR

Delhi, East Delhi, Gurugram, Faridabad, Ghaziabad, New Delhi, South Delhi, Noida, Rithala

Haryana

Chandigarh, Rohtak, Palwal, Gurgaon, Rewari, Panipat, Kaithal, Karnal

Himachal Pradesh

Shimla, Mandi, Manali, Chamba, Kullu, Rampur

Uttar Pradesh

Lucknow, Agra, Kanpur, Allahabad, Varanasi, Meerut, Jhansi

Punjab

Amritsar, Ludhiana, Jalandhar, Patiala, Firozpur

Uttarakhand

Dehradun, Haridwar, Mussoorie, Roorkee, Kichha

Odisha

Bhubaneswar, Cuttack, Sambalpur, Berhampur

West Bengal

Kolkata, Hooghly, Howrah, Kalyani

Bihar

Patna, Sasaram, Nalanda, Aurangabad, Jahanabad, Siwan, Darbhanga, Buxar

Jharkhand

Ranchi, Jamshedpur, Dhanbad, Deoghar

Gujarat

Ahmedabad, Vadodara, Surat, Jamnagar

Goa

Panaji, Madgaon, Mapuca, Ponda

Rajasthan

Alwar, Jaipur, Ajmer, Behror, Dholpur

Maharashtra

Mumbai, Palghar, Pimpri, Ulhasnagar, Thane, Ahmednagar, Aurangabad, Nashik, Nanded

Telangana

Hyderabad, Ranga Reddy, Khammam

Karnataka

Bangalore, Mangalore, Hubli, Mysore, Shimoga, Davanagere, Gulbarga, Bellary, Belgaum

Andhra Pradesh

Vijayawada, Visakhapatnam, Guntur, Tirupati, Rajahmundry, Kakinada, Amaravati, Kadapa, Nellore, Kurnool, Anantapur

Tamil Nadu

Chennai, Coimbatore, Madurai, Trichy, Salem, Vellore, Erode

Kerala

Ernakulam, Kochi, Thiruvananthapuram, Kollam, Thrissur, Malappuram