Working Capital Loans

Working Capital Loans

Working Capital Loans are financial facilities offered by banks and financial institutions to help businesses meet their short-term operational needs. Also known as Cash Credit, the loan amount depends on the company’s stock, debtors, and creditors, which together represent its working capital.

Each lending institution has its own method for calculating the working capital limit. Typically, the interest rate starts from 12% p.a., and the final rate may vary depending on the borrower’s profile and business performance.

While stock and receivables serve as primary security, lenders may also request additional collateral for safeguarding the loan. With flexible terms, quick approvals, and tailored repayment options, Working Capital Loans enable businesses to maintain liquidity and smoothen day-to-day operations.