Working Capital Loan

A Working Capital Loan is one that is availed of to fund the day-to-day operations of a business, ranging from payment of employees’ wages to covering accounts payable. Not all businesses see regular sales or revenue throughout the year, and sometimes the need for capital to keep the operations going may arise.

A Working Capital Loan is not meant to fund your business expansion or asset purchase plans; it is a type of business loan that is used to meet your short-term financial obligations and operational requirements. The short-term liabilities could range from payment of monthly overheads to day-to-day expenses, purchase of raw materials, and inventory management. These are only a few examples of a business's short-term operational requisites. With the aid of a Working Capital Loan, your short-term necessities are taken care of, and you have more space to plan and focus on your long-term goals.

Documents required for a working capital loan

• KYC documents along with firm registration/ proof of identity
• Primary business bank statement for 6 months
• Salary slips for 2 months (if applicable)
• Partnership deed/ company MOA/ AOA/ COI (if applicable)
• The primary banking account of the applicant should have a minimum vintage of 1 year
• Property documents such as sale deed, house tax receipt, electricity bill