Working Capital Loan

Name: Investkraft
Address: Office No. 101A, D Mall, Netaji Subhash Place, Delhi, 110034, IN
Telephone: 9797971876

Manage short-term expenses with Working Capital Loans

High Capital Limit

Low Interest Rate

Fast Disbursal

*For Partnership Companies, Pvt. Ltd., LCC companies, and other eligible legal entities.

Why InvestKraft?

We are India’s fastest growing fintech company with all BFSI services on one platform.

10 Lakh +

Happy Customers

5 Years +

Expertise & Excellence

5k+

IK Partners

*Disclaimers/Conditions Apply

Get your Working Capital Loan Eligibility in minutes !

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What is Working Capital Loan?

A working capital loan meaning a short-term loan that is very beneficial for your business to manage operational expenses during a lack of funds. Basically, these are for making your business run smoothly during a financial crisis. In short, you can use a working capital loan for the following:

Purchasing inventory
Paying suppliers
Handling operating expenses
Managing cash flow

So, if you are running a small or medium-scale business, and there is a temporary financial crunch that can hamper the operations, then InvestKraft is here to help you out.

Loan amount

₹

₹1,000

₹1,00,00,000

Rate of interest (p.a)

1 %

50%

Loan tenure

1 yrs

30 yrs

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Features and Advantages of Working Capital Loan with InvestKraft

Let us see some of the features and advantages of the working capital loan from InvestKraft:

Flexibility

There are various types of working capital loans like term loans, overdraft facility, line of credit and others. InvestKraft gives you the flexibility to choose your business loan as per your requirements and repayment capacity.

Quick Access to Funds

We understand that time is of the essence, that is why our working capital loans do not require you to wait. With 100% paperless documentation, you can get the required funds in your account in a very short period of time.

Improve Cash Flow

When there are delayed payments or seasonal demands, your business requires working capital to pay salaries, buy raw material and other expenses, and that is where InvestKraft helps you get the necessary business loan, which also helps in improving the cash flow.

Support Business Growth

When you are planning to grow your business, the first thing that is required is additional funds for marketing, hiring, boosting production and other expenses. To cater to all these, our working capital loan can make it happen. Apply now and take your business to new heights.

Build Credit History

When you take a working capital loan, your business operations are smoothened, but that is not the only thing that improves. With timely repayment, your credit score builds up, and that can help you get bigger loans at a lower interest rate in the future.

Start Your Loan Application Now!

Advantages of Term Loan (Short & Long-term Loan):

Predictable Cash Flow

Imagine your business income is like a river. Sometimes it flows smoothly, sometimes it slows down. A Term Loan is like a steady stream flowing into your business. You know exactly how much you need to pay back each month, helping you keep your financial boat afloat even when the river gets a little choppy.

Flexible Use of Funds

Think of a Term Loan as a versatile tool in your business toolbox. You can use it to buy new equipment, hire more staff, rent a bigger office – whatever you need to grow and succeed. It's like having a handyman who can fix any problem or build anything you dream up.

Improved Creditworthiness

Paying your bills on time is like building trust. When you consistently repay your term loan, lenders will see that you're a responsible borrower. This builds a strong credit history, making it easier to get loans in the future – like having a good reputation that opens doors for you.

Long-term Growth

Imagine your business as a young tree. To grow tall and strong, it needs nourishment. A Term Loan provides that nourishment – the extra funds to invest in new ideas, reach new customers, and expand into new markets. It's like giving your business the fuel it needs to reach its full potential.

Simplified Budgeting

Budgeting can feel like a complicated puzzle. But with a Term Loan, you have one less piece to worry about. You know exactly how much you'll pay each month, making planning your finances easier and avoiding unexpected surprises. It's like having a roadmap that makes it easier to reach your financial goals.

Eligibility Criteria for Working Capital Loan

The following are the basic eligibility criteria you need to meet to get working capital loan:

Eligibility Criteria	Details
Business Registration	The business must be legally registered and actively operating in India.
Financial Performance	Must show consistent revenue, profitability, and positive cash flow.
Creditworthiness	A good credit history is preferred. Lenders may also consider alternate credit data for thin-file borrowers.
Business Plan	Some lenders may ask for a detailed business plan explaining how the loan will support business growth.
Collateral (if applicable)	Depending on the loan amount or type (secured/unsecured), lenders may require assets like property, inventory, or receivables.

Please note that these are the basic eligibility criteria. There can be some variations depending on your financial background and your lender.

Documents Required for Working Capital Loan

The following are the documents required for the working capital loan, as mentioned in the table below:

Document Type	Details
Business Registration Proof	Certificate of Incorporation, Partnership Deed, GST registration, or other valid business documents.
Financial Statements	Audited Profit & Loss Statement, Balance Sheet, and Cash Flow Statement (usually for the last 2 - 3 years).
Bank Statements	Bank statements of the business account for the past 6 - 12 months.
Income Tax Returns (ITR)	ITRs of the business and/or proprietors for the past 2 - 3 years.
Personal Financial Documents	PAN Card, Aadhaar Card, and income proof of proprietors/partners (if applicable).
Collateral Documents	Property documents, vehicle RC, or any other asset papers (only if collateral is needed).

Please note that these are the basic documents required. However, depending on your lender and your financial situation, there may be a requirement for more documents.

Who can apply for Working Capital Loans?

The following types of applicants can get a working capital loan:

Eligible Applicant	Details
Small and Medium Enterprises (SMEs)	Startups, small businesses, and medium-sized enterprises from various sectors need funds for daily operations or short-term needs.
Established Businesses	Mature businesses aiming to expand, manage seasonal cash flow gaps, or fund short-term projects.
Non-Profit Organizations	Eligible for working capital loans to finance operational costs or support community-driven programs.

Please note that if your application does not belong to any of the above applicant types, then please contact us, and we will help you get the best business loan based on your profile.

How to Apply for a Working Capital Loan?

In just 4 easy and simple steps, you can get a working capital loan for your business:

Visit InvestKraft Website

Explore loan options and submit an online application

Document Submission

Submit the required documents as per the checklist.

Loan Application Review

Lenders at InvestKraft will assess your application and eligibility.

Disbursement

Upon approval, the loan amount will be disbursed to your bank account.

Rate of Interest and Other Charges on Working Capital Loan

When you take a working capital loan, there is a rate of interest like every other loan. It is very important that you understand these charges and make an informed decision.

Parameter	Details
Interest Rate	HDFC Bank: From 10.75% p.a. IDFC First Bank: From 10.50% p.a. Bajaj Finserv: From 14% p.a. Indifi: From 1.50% per month
Processing Charges	HDFC Bank (New Loans): up to 1% of the loan amount HDFC Bank (Used Loans): up to 1.5% Punjab & Sind Bank (up to INR 25 Lakhs): 0.40% Punjab & Sind Bank (above INR 25 Lakhs): 0.50%
Pre-closure Charges	Usually from 2% to 5% of the pre-paid amount + GST, depending on the lender and terms.
Bounce Charges	Most banks and NBFCs charge INR 500 + applicable taxes per bounced EMI or payment.

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Frequently Asked Questions

There are several types of working capital loans available, including:

Line of Credit: A line of credit functions similar to a credit card, allowing you to borrow funds as needed up to a pre-approved limit.
Term Loan: A term loan provides a lump sum of cash that needs to be repaid over a fixed term with regular installments.
Invoice Factoring: This option allows you to sell your outstanding invoices to a factoring company at a discount to receive immediate cash.

Lenders typically consider your business's financial health, creditworthiness, cash flow history, and the purpose of the loan when evaluating your application for a working capital loan.

The interest rate on a working capital loan can vary depending on your creditworthiness, the loan amount, and the type of loan you choose. Generally, interest rates for working capital loans tend to be higher than those for traditional business loans.

Some alternatives to working capital loans include business credit cards, merchant cash advances, or invoice factoring. However, it is important to compare the interest rates and terms of each option before making a decision.

Maintaining a strong credit history, having a solid business plan, and demonstrating a clear need for the funds can significantly improve your chances of getting approved for a working capital loan.