Easily Obtain Bank Loan

Working capital loan can be used for building up of current assets and regular operations of a business. IndiaFilings can help you obtain working capital facilities for your business from Rs.99899/-

From Rs.99899 /- all inclusive fees
EMI: Rs.8920 for 12 months*

Working Capital Loan

Working capital loans are provided for financing everyday operations of a company and used to cover or build-up current assets like inventory, stock-in-trade, accounts receivables, etc., Companies that have high seasonality or cyclical sales cycles usually rely on working capital loans to help with periods of reduced business activity. Various types of bank facilities fall under working capital facility. Some of the types of working capital facilities are cash credit, overdraft, letter of credit, bank guarantee, packing credit, post shipment finance and bill discounting.

IndiaFilings is the largest business services platform in India, offering a variety of services like working capital syndication, CMA report preparation, company incorporation, trademark registration, GST registration, income tax filing and more. IndiaFilings can help you syndicate working capital loan for your business. Get a free consultation for working capital loan syndication through IndiaFilings by scheduling an appointment with an IndiaFilings Advisor.

Different Types of Bank Loan Facilities

Term Loan

Term loan is sanctioned by Banks for purchase of fixed assets like land, building, equipment and other types of assets. Repayment is fixed over a period of 5 years with EMI payments or bullet payments.

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Working Capital

Working capital loan is sanctioned by Banks for working capital purposes like holding of inventory, receivables and build-up of other current assets in a business. Working capital facilities are renewable every year.

Letter of Credit

Letter of credit is a type of facility from a Bank guaranteeing a buyer's payment to a seller, in the event that the buyer is unable to make payment on the purchase as per terms of the transaction.

Bank Guarantee

Bank guarantee is a promise from a bank that the liabilities of a party will be met by the Bank in the event that the party fails to fulfill contractual obligations. Bank guarantees are typically requested while executing large projects.

Mortgage Loan

Mortgage loans are loans that are backed by real property by putting a lien on the property being mortgaged. The funds generated from a mortgage loan can be used by the business for any purpose.

Identity and Address Proof

Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.

Registered Office Proof

All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

Documents Required for Working Capital Loan

What is Working Capital?

Working Capital of a business is the total current assets of the business minus the total current liabilities of the business. A good amount of working capital ensures the business functions smoothly and meets its current liabilities on time.

What is Working Capital Loan Syndication?

Working Capital Loan Syndication is the process of formulating a credit request, preparing a detailed project report along with the necessary documents, submitting the requests to banks or financial institutions and obtaining sanction & disbursement of working capital facilities like cash credit, letter of credit (LC) or bank guarantee.

What is tenure of a working capital loan?

Working capital loans do not have tenure. Working capital loans can be renewed each year based on the performance of the entity.

What is the rate of interest for term loan?

The rate of interest for a working capital loan will be based on the borrowers profile and credit worthiness. Usually, working capital loan interest rates are fixed as a set percentage over the banks base lending rate.

Can I get a working capital loan for buying building or land or machinery?

No, working capital loans are sanctioned only for utilization towards the operation of the business and can be used only for acquiring short-term assets like inventory.

What is a cash credit limit?

Cash credit limit allows a business to utilize bank funds for acquiring stock or other assets required for running a business and/or for liquidating current liabilities of a business as it becomes due. Cash credit limit is similar to a credit card for individuals, wherein the bank allows the business to use a certain amount of funds in credit for working capital purposes. The amount of cash credit limit sanctioned is based on the business profile and credit worthiness of the borrower.

What is Letter of Credit Limit?

A Letter of Credit facility allows the borrower to obtain current assets on credit from a supplier. The letter of credit gives the supplier assurance that the payment for the goods provided on credit will be repaid either by the customer or the bank.

Can I get a bank loan without any Collateral?

Yes, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme provides a way for Entrepreneurs to obtain a bank loan of upto Rs.1 Crore without any collateral security. However, to obtain sanction under the CGTMSE Scheme, the Entrepreneur must have excellent track record and very good credit worthiness.

What are some of the main factors that determine loan eligibility?

Some of the main factors that determine the credit eligibility of a business are Promoters background, business model, operational performance, infrastructure, location, collateral security offered, present financial Performance, future financial performance, credit repayment track record, external credit rating, etc., The credit decision is based on a composite of the above factors.

How long will it take to obtain sanction of bank loan?

The processing time for obtaining a bank loan is anywhere between 1 and 3 months. However, the processing time will depend on the information submitted by the promoter, information requested by the bankers and a host of other factors. Therefore, the 1 to 3 months is a very good estimate of the time required to obtain a bank loan.

How will IndiaFilings help me obtain Bank Loan?

IndiaFilings has experience financial professionals who syndicated bank loans for hundreds of business. Our Financial Professionals will first understand you business, know your requirements, prepare a custom Detailed Project Report for your business, advice you on the Capital Syndication options, submit the request to bankers or financial institutions and follow-up until sanction and disbursement of the credit facility. Our Financial Professionals will provide end-to-end support on the loan syndication process.

What documents or information should I provide to start the process?

Bank loan syndication process starts with our Financial Professionals understanding your business. So we would require information like your present or proposed business plan, business location, business infrastructure, promoters profile, past and/or projected financial performance, present relationship with banks or financial institutions, collateral security offered and other pertinent information. The information can be provided through email or phone. Once, our Financial Professionals understand your business, they can advice you on the Capital Syndication efforts and the roadmap to achieving financial closure.

What documents will be submitted to the Banks?

The submission to the banks will include a Detailed Project Report, Request Letter, Financial Statements, Business Constitution documents and other information pertaining to the credit request. In case, the bank requests for further documents or have a query, we will address the same in association with the client.

What will be the fee charged for Bank Loan Syndication?

IndiaFilings will initially charge a consulting fee for evaluating the client with respect to the bank loan syndication process. Once our Financial Professionals are satisfied with respect to the credit worthiness of the client, further fee and process will be discussed to start the Bank Loan Syndication process.

SIMPLE & TRANSPARENT PRICING

Basic

^Rs.99899/-

all inclusive fees

CHECKOUT

Working capital loan syndication for a quantum of upto Rs. 50 lakhs.

From Rs.99899 /- all inclusive fees
EMI: Rs.8920 for 12 months*

Standard

^Rs.199899/-

all inclusive fees

CHECKOUT

Working capital loan syndication for a quantum of upto Rs. 100 lakhs.

From Rs.199899 /- all inclusive fees
EMI: Rs.17848 for 12 months*

Premium

^Rs.399899/-

all inclusive fees

CHECKOUT

Working capital loan syndication for a quantum of upto Rs. 250 lakhs.

From Rs.399899 /- all inclusive fees
EMI: Rs.35705 for 12 months*

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How we help with working capital loan

IndiaFilings.com can help you syndicate working capital loan.

Free Consultation

Got questions? Request a call from an IndiaFilings Business Advisor.

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Document Collection

An IndiaFilings Capital Syndication Expert will collect the necessary information and documents for preparation of project report.

Application Processing

Once the application is prepared and submitted in the required format, Officials from the Bank or Financial Institution will process the application and verify the particulars presented in the application.

Sanction & Disbursement

Application is scrutinized by the Bank or Financial Institution. If the application is in order, loan is sanctioned and disbursed.

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Easily Obtain Bank Loan

Working Capital Loan

Different Types of Bank Loan Facilities

Term Loan

Working Capital

Working capital loan is sanctioned by Banks for working capital purposes like holding of inventory, receivables and build-up of other current assets in a business. Working capital facilities are renewable every year.

Letter of Credit

Bank Guarantee

Mortgage Loan

Identity and Address Proof

Registered Office Proof

What is Working Capital?

What is Working Capital Loan Syndication?

What is tenure of a working capital loan?

What is the rate of interest for term loan?

Can I get a working capital loan for buying building or land or machinery?

What is a cash credit limit?

What is Letter of Credit Limit?

Can I get a bank loan without any Collateral?

What are some of the main factors that determine loan eligibility?

How long will it take to obtain sanction of bank loan?

How will IndiaFilings help me obtain Bank Loan?

What documents or information should I provide to start the process?

What documents will be submitted to the Banks?

What will be the fee charged for Bank Loan Syndication?

Basic

all inclusive fees

Standard

all inclusive fees

Premium

all inclusive fees

Online Trademark Search

Enter a brand name to search across all trademark classes

How we help with working capital loan

Free Consultation

Document Collection

Application Processing

Sanction & Disbursement

INDIAFILINGS

OUR MISSION

LEARNING CENTER

Vibrant Team

24/7 Support

EMI Payment

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