Working Capital Loan

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

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.

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.