Working Capital Loan - Apply for Working Capital Finance in India
Every business needs money to conduct their day-to-day operations, such as procuring raw materials, paying wages to the employees, clearing existing debts, etc. This money, known as working capital, enables the business to function efficiently, conduct its operations smoothly and without any hurdle. A shortage of working capital can lead to detrimental effects on business output and productivity.
With the Poonawalla Fincorp Business Loan for Working Capital, you can access quick funds to meet all short-term financial needs for your business. Moreover, our Working Capital Loans are collateral-free and come with a slew of benefits like flexible tenure, repayment options, competitive interest rates, easy approval, and quick disbursal facility.
Reasons to Get a Working Capital Loan
By availing the Working Capital Loan from us, you can ensure seamless operations of your business. Our Business Loans for Working Capital allow you to meet the extra financial demands during peak season.
Here are some of the various reasons why you must take a Working Capital Loan from Poonawalla Fincorp:
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Meet short-term financial needs
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Pay emergency expenses
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Renovate or expand business infrastructure
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Pay for overhead costs like rent, electricity, etc.
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Maintain a healthy cash-flow
Working Capital Business Loan EMI Calculator
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EMI Amount = *
Working Capital Loan Interest Rates & Fees
At Poonawalla Fincorp, the working capital loan interest rates start at 15%* per annum. Our Business Loan for Working Capital can be used for a variety of purposes for your enterprise. You can use the working capital finance to get advanced machinery, infuse working capital, hire staff, expand your product portfolio, and open a new manufacturing facility or office space.
The interest on working capital loan also depends on your credit score, credit history, loan amount and loan tenure.
| Business Loan Interest Rates | 15% p.a onwards |
| Loan Amount | ₹1 Lakh to ₹50 Lakhs |
| Loan Processing Fees | Up to 3% plus applicable taxes |
| Lowest EMI per month | Starting from ₹3,467* per Lakh for 36 months |
| Loan Tenure | 6 - 36 months |
| Prepayment/Foreclosure Charges | 0%* If paid from own sources |
| Default Interest | 3% per month |
| Repayment Instrument Dishonor Charges | ₹1000 per bounce plus applicable taxes |
| Stamp Duty | At actuals (as per state) |
| No Other Hidden Charges | |
Working Capital Loan Eligibility Criteria
Our Working Capital Loans come with basic eligibility requirements, allowing you to access funds for your business even during an emergency.
Citizenship
Indian
Age
24 to 65 years
Business Vintage
2 years or above
Business Turnover
₹6 Lakh or above
Note: The above-mentioned eligibility criteria are indicative in nature and more information can be asked by Poonawalla Fincorp team during loan processing as per the policy.
Documents Required for Online Working Capital Loan
Important Documents for Online Working Capital Loan Application:
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Identity proof
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Address Proof
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Financial documents
If you need a working capital loan, apply on the website using the easy application process and on successful verification, the loan will be disbursed to your account.
Features and Benefits of Business Loan for Working Capital
Poonawalla Fincorp provides Working Capital Loans for businesses with simple eligibility criteria and minimum documentation process. The aim of the Poonawalla Fincorp is to provide financial assistance to all business owners and help them grow and expand.
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Quick online application process
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Hassle-free loan approval
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Minimum documentation requirements
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Simple eligibility criteria
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High loan amount of up to ₹50 Lakh
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Low interest rates
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Flexible repayment tenure option
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Minimum processing fees
Apply for Instant Working Capital Business Loan within 5 Minutes
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Online
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Click on Apply Now and enter your contact details.
Business
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Enter your annual business turnover and other business details.
Verification
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The application will then proceed for verification and assessment
Frequently Asked Questions
You can apply for a Working Capital Loan either offline or online which provides the convenience of applying from your home/office.
Follow the few simple steps mentioned below:
- Step 1 – Visit our website or your nearest branch
- Step 2 – Check your eligibility for the Working Capital Loan
- Step 3 – Fill up the loan application form
- Step 4 – Wait for a representative to contact you and get the loan amount credited in your bank account post verification
A Working Capital Loan is a special designed loan given to business owners to help them address their short-term financial needs. It enables them to conduct their business operations seamlessly without worrying about any cash crunch.
You can take a Working Capital Loan to meet various financial obligations related to your business, it can be procuring raw materials, paying wages to employees, clearing existing debts, maintaining a healthy cash flow, paying utility bills, etc.
All small and medium-scale businesses owners are eligible to avail a Working Capital Loan provided by Poonawalla Fincorp.
The interest rate for a Working Capital Loan varies from lender to lender. Poonawalla Fincorp provides Business Loans for Working Capital at competitive interest rates.
No. With Poonawalla Fincorp, you don’t have to pay any additional charges for availing a Working Capital Loan for your business. We only charge a nominal one-time processing fee of up to 3% of the loan amount plus applicable taxes.
You can use our online Working Capital Loan EMI calculator to determine your EMIs in advance. All you need to do is enter your loan amount, interest rate, and tenure and then click on Calculate.
A working capital loan also called a Working capital Business Loan is a type of loan availed of by business owners for meeting their working capital requirements. Working capital is the capital that is required by any business for running day-to-day operations. This could be related to inventory, debtors, creditors, liquid cash management, etc.
Working capital finance in India is essential for any enterprise to sustain itself. It is needed to fulfil the difference between your enterprise’s current assets and current liabilities. Working capital is required for continuing everyday operations, and to be financially stable during emergencies. If your working capital is lesser than required, you might experience financial stress in the long run.
Since need for business owners are generally to get this type of loan quickly, it is colloquially also referred to as a fast capital loan. This commonly used term emphasizes the fast nature of the process – right from application to disbursal. This Business capital loan is used by smaller businesses also as they have need to sustain their day-to-day operations. Such types of loans are also referred to as Working Capital Loans for small business.
Working capital is essential for the smooth operation and growth of a business. It represents the difference between current assets (such as cash, inventory, and accounts receivable) and current liabilities (such as bills, salaries, and short-term debt). Sufficient working capital ensures the ability to meet short-term financial obligations, maintain steady operations, and seize growth opportunities. It enables businesses to cover daily expenses, manage inventory effectively, maintain cash flow stability, and build strong relationships with suppliers. Additionally, having adequate working capital provides a safety net during emergencies, enhances financial stability, and improves the overall resilience of the business in the face of unforeseen challenges.
The four main components of working capital are:
- Cash: Cash represents the most liquid component of working capital and includes cash on hand and in bank accounts. It allows a business to meet immediate financial obligations, such as paying for expenses and managing day-to-day operations.
- Accounts Receivable: Accounts receivable refers to the money owed to a business by its customers for goods or services provided on credit. It represents the outstanding invoices that are yet to be collected and is an important component of working capital, as it represents the funds the business expects to receive in the near future.
- Inventory: Inventory includes the raw materials, work-in-progress, and finished goods held by a business for production or sale. It ties up capital but is necessary to meet customer demand and maintain a smooth production and delivery process.
- Accounts Payable: Accounts payable represents the amount a business owes to its suppliers or vendors for goods or services received on credit. It represents the short-term debts and obligations of the business and is a crucial component of working capital management, as it affects the cash flow and liquidity position.
Efficient management of these components is essential for maintaining adequate working capital levels and ensuring the smooth operation of a business.
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