Working Capital Loan



CreditCentral offers a customized working capital loan for small and medium enterprises to meet their working capital requirements. A working capital loan helps you in running everyday operations. These loans usually cover recurring expenses such as accounts payable, wages, etc. Our working capital loans help offset your working expenses during a low sales / revenue period. We have combined the best features of several types of such loans to create an offering which is suited for Indian SMEs and start-ups.

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Top Features of a LendingKart working capital loan

This is a short-term, small ticket loan of up to 2 crores,given for a period of 1 to 36 months. Here are some of its salient features:

  1. Loan amount from 50 thousand to 2 crores

    Your requirement may be small or large,we cater to them all – from 50,000 to 2 crores.

  2. Superfast processing

    We process all loan applications within 72 hours on an average.

  3. Completely online processing

    There is no need to visit physically or wait in long queues. The application is very simple & is processed online.

  4. No collateral required

    An unsecured working capital loan that reduces the risk of asset loss for your business.

  5. Fair interest rates

    Interest rates range Starting from 1.25% per month, depending on your credit profile.

  6. Loan tenure

    We sanction loans with a tenure varying between 1 and 36 months, for easy & convenient repayment.

  7. Processing fee

    One-time processing fee of 2 to 5%, no other hidden costs or charges.

  8. Flexible Repayments

    Monthly or bi-weekly instalments available for your convenience.


Benefits of Working Capital Loan by CreditCentral

CreditCentral is a non-banking financial company. NBFCs offer several benefits over traditional private and public financiers.

– Faster processing:

You can get a working capital loan within 3 days by submitting all documents.

– Preserving your ownership:

These loans help you avoid equity divestment by providing quick and easy access to credit without collateral.

– Streamlines your cash flow:

Our loans allow you to operate normally during cash crunch and cyclic upheavals in sales and revenues by providing ready cash at hand.

– Improve your credit score:

If your business was denied a bank loan due to low credit score, CreditCentral helps you improve your credit rating as well by reporting your loan transactions to the Credit Bureau.


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Working Capital Loan Fees & Interest Rates


Customized Interest Rates Fair, Transparent – starting from 1.25% per month
Processing Fees 2-5%
Loan Tenure up to 3 years
Pre-closure Charges Nil**
Eligibility Criteria > ₹ 90,000 turn over for 3 Months
Loan Amount ₹ 50,000 – ₹ 2 crore
Installments Flexible Monthly / Bi-weekly

*Based on the health of your business, revenues and annual turnover
**Pre-closures are only allowed after the first EMI is paid in full
To facilitate an easy assessment of your monthly financial obligations, consider utilizing our user-friendly Working Capital Loan EMI calculator.


Eligibility Criteria for Working Capital Finance

In comparison with banks and traditional lenders, Lendingkart Finance has a very relaxed eligibility criteria for working capital loans. Here are the pre-requisites for getting the same:

  1. A business that has been in operation for more than 3 months.
  2. A minimum turnover of ₹90,000 in the 3 months preceding your loan application.
  3. The business should not fall under blacklisted / excluded list for SBA finance.
  4. The physical location of your enterprise should not be in the negative location list.
  5. Trusts, NGOs and Charitable institutions are not eligible for small business working capital loan.


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Documents Required for a working capital loan


  Proprietorship Partnership Pvt. Ltd. / LLP / One Person Company
Bank statement (12 months) Docs Docs Docs
Business registration proof Docs Docs Docs
Proprietor(s) PAN Card Copy Docs Docs Docs
Proprietor(s) Aadhar Card Copy Docs Docs Docs
Partnership Deed Copy Docs Docs Docs
Company PAN Card Copy Docs Docs Docs

We accept any of the following as a Business registration proof

  1. Business Registration Certificate
  2. GST filing
  3. Gumastadhara
  4. Trade License
  5.  Drug License
  6. TIN
  7. VAT registration

Apply for working capital loan online in 3 simple steps


  1. Submit Application

    It just takes 60 seconds

  2. Upload Documents

    Completely online process

  3. Get Sanctioned

    We evaluate your application and give you a fair sanction


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Working Capital Loan types

These are of two types: secured & unsecured. Secured loans require an asset as a collateral in lieu of the funds loaned to your business. However, unsecured loans rely on the financial health of your business for sanctioning the loan amount. Here’s a list of six most common types of working capital loans for SME.

  1. Bank Overdraft / Credit Line:

    This is a pre-approved withdrawal limit which a bank or financial institution gives you on your current account. Prerequisites include a long working relationship, good credit score, and a reasonable loan amount. Interest is only paid on the amount withdrawn, even if the sanctioned limit is higher. However, interest rates are generally 1 to 2 percent higher than the prime rate of the lending institution.

  2. Equity Funding

    Equity funded working capital loans are acquired through personal resources or investors, such as investment from friends or family. These working capital loans are mostly taken by start-ups and businesses with a less than ideal credit score.

  3. Short-term Loans

    These are one of the most popular sources of working capital finance for Indian SMEs. These are normal working capital loans, granted at a fixed interest rate with a short repayment period of up to one year. Generally, these are secured loans that may also have other policy requirement such as revenue/sales targets for you to follow.

  4. Loan on Accounts Receivables

    Granted against confirmed sales order value, this kind of debt is ideal for your business if you have a reliable customer base as there is always a risk of invoice defaults. In lieu, financial institutions are also hesitant to provide these working capital loans to new businesses.

  5. Factoring / Advances

    Like an accounts receivable loan, this loan is given against future credit card receipts instead of confirmed sales. However, this type of debt is only suitable for a business that accepts credit card payments.

  6. Trade Creditor

    A trade creditor working capital loan is provided by a current or new supplier. This facility is generally offered on placing bulk orders. However, trade creditors usually have strict policy parameters to be followed by the borrower.


Do’s and don’t’s

A working capital loan is a debt which you will have to eventually pay off. So, it is important that you consider your business needs seriously before committing to it. Here are some things you should consider before applying for one:


Have you explored all other options for managing your working capital?

While working capital finance is one of the best ways to manage your operational requirements, there are several other measures you can take to streamline your cash flow. For example, identifying and cutting back unnecessary expenses, optimizing your invoice cycle, reducing stock of slow-moving inventory items, etc. So, before going for a loan make sure you have tried every measure to streamline your finances.


How do you intend to use the loan money?

If you do not have a plan to utilize the funds, you might end up putting your business in a poor financial situation. Working capital loans are not meant for financing expansions and long-term assets. Make sure you carefully consider the usage of your working capital loan before applying for one.


Does it benefit your business?

A healthy business with streamlined supply chain and operations will no doubt benefit from a working capital loan. But if you are a relatively new business, you should also know about the ultimate advantages of taking a working capital loan along with its usage. This includes having the ability to service the loan. If your business needs a working capital infusion but your current revenues are not enough for EMI payments, you should consider alternate means of stabilizing before applying for the loan.


Working Capital Loan News

Ominous clouds of financial constraints looming over MSMEs

Industrial units, particularly MSMEs across Gujarat that do not have large cash reserves, are facing problems. Manufacturers are either downsizing production or cutting operational hours. Higher coal and gas costs are also making manufacturers shell out more.
Jaimin Shah, co-chairman, Assocham Gujarat State Council, informed:

  1. Cash flow cycles for MSMEs are stretched due to stuck and delayed payments. 
  2. In most cases, payment is received by manufacturers after shipments reach their destination.
  3. Thus, payments due to the lack of shipping containers are delayed by an additional 45-60 days. 

MSMEs are reeling from a shortage of working capital. Higher input costs on raw materials across Gujarat create a shortage of raw materials.

  1. Plastic packaging manufacturing units have been running at around 65% capacity. 
  2. Production of dyes and chemicals is being hampered due to skyrocketing raw material prices. 
  3. The need for working capital has increased due to the rise in the price of steel and non-ferrous metals. 
  4. At least 20% of foundries are yet to resume after Diwali. 
  5. Textile processors have cut working hours due to raw material prices shooting through the roof.

Updated Date: 21-12-2021


Extension of the Emergency Credit Line Guarantee Scheme to the Hospitality Sector

The extension of the Emergency Credit Line Guarantee Scheme (ECLGS) to the Hospitality Sector was a much-needed reprieve for the industry that has been going through a grind since the start of Covid in 2020. The Hospitality Sector has suffered a lot in the last year and a half with huge losses leading to the shutdown of some quite famous hotels. Around 40% of revenue and 5 Crore jobs have been lost by the hospitality industry and thus managing to run a hotel became a tougher job overnight with the financial pressure and reduced income.
The hospitality industry is one of the heavily taxed sectors with taxes at state as well as national levels and a lot of money being spent on getting permits and licenses. The decision to provide the ECLGS to this sector is a very good one as the tourism and hospitality sector needs money to be able to stand again and this funding source might just help the sector which is known to adjust and evolve despite calamities, thanks to their cost-efficient structures.

Updated Date: 17-08-2021



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