Business finance
Working Capital Loan
Overdraft, cash credit and dropline limits that match how your business actually breathes.
Working capital facilities from ₹10 lakh to ₹5 crore, including overdraft, cash credit, dropline overdraft and invoice discounting, at rates from about 11% p.a., secured or unsecured.
- Rate from
- 11.00% p.a.
- Amount
- ₹10 L to ₹5 Cr
- Tenure
- 1 to 15 years
- Processing fee
- 0.5% to 2% of the limit plus GST
Check working capital loan eligibility
Free pre-screen across our lender panel. No bureau enquiry.
About working capital loans
Term loans fund one-time needs; working capital finances the gap between paying suppliers and getting paid by customers. The right facility is a limit you can draw and repay repeatedly, paying interest only on what you use, rather than a lump sum that sits idle for half the year.
We structure cash credit and overdraft limits against stock and receivables, dropline overdrafts against property for businesses that want flexibility without annual renewals, and invoice or bill discounting for firms with strong corporate customers. The assessment methods differ across lenders, and we know which method favours your business.
Rate note: Secured limits against property or receivables price from 11% p.a.; unsecured overdrafts and invoice finance run higher.
Why borrowers choose it
What a working capital loan through LoansPartner gets you
Pay interest only on usage
A limit, not a lump sum. Draw and repay as cash flows dictate.
Dropline overdraft
Long-tenure limits against property with no annual renewal hassle.
Invoice discounting
Convert receivables from strong customers into cash within days.
Right assessment method
Turnover, cash-budget or MPBF methods: we pick the lender whose method gives you the larger limit.
Common uses
- Inventory and raw material purchases
- Bridging receivable cycles
- Seasonal business peaks
- Executing large orders and contracts
- Replacing costly short-term borrowings
Eligibility
Who qualifies
Norms vary by lender. These are the ranges across our panel; we tell you precisely where your profile fits before you apply.
- Age
- Promoters aged 25 to 65
- Income
- Annual turnover of ₹1 crore or more for most bank facilities; lower for invoice finance
- Credit score
- Promoter score of 700 and above; satisfactory commercial bureau report
- Employment
- Manufacturers, traders, distributors, service firms and contractors. 3+ years of business vintage with audited financials
- Also
- Collateral (property, stock, receivables) for larger limits
- Also
- Regular GST filing and healthy account conduct
Documents
What to keep ready
A complete file is the single biggest driver of a fast sanction. We collect everything digitally in one go.
- Entity and promoter KYC
- Last 3 years' audited financials and ITR
- Last 12 months' bank statements of all accounts
- GST returns for 12 months
- Debtor and creditor ageing, stock statement
- Collateral documents where applicable
- Projected financials for the coming year
How it works
Five steps, one point of contact
- 01
Share your business profile, turnover, receivable cycle and available collateral.
- 02
We recommend the facility type and shortlist lenders with a suitable assessment method.
- 03
Financials, projections and collateral documents are submitted.
- 04
The lender sanctions a limit with a Key Fact Statement; security is created.
- 05
The limit is live in your current account. We handle renewals and enhancements each year.
Indicative EMIs
What the instalment looks like
Computed at the lowest rate in this product's range. Run your own numbers in the EMI calculator.
| Loan amount | 2 yr | 3 yr | 5 yr | 7 yr |
|---|---|---|---|---|
| ₹10,00,000 | ₹46,608 | ₹32,739 | ₹21,742 | ₹17,122 |
| ₹20,00,000 | ₹93,216 | ₹65,477 | ₹43,485 | ₹34,245 |
| ₹50,00,000 | ₹2,33,039 | ₹1,63,694 | ₹1,08,712 | ₹85,612 |
| ₹1,00,00,000 | ₹4,66,078 | ₹3,27,387 | ₹2,17,424 | ₹1,71,224 |
| ₹2,00,00,000 | ₹9,32,157 | ₹6,54,774 | ₹4,34,848 | ₹3,42,449 |
Lenders
Where we place working capital loan files
A selection from our panel. The best lender for you depends on your profile, city and the property or asset involved.
HDFC Bank
Private bankSalaried professionals seeking competitive personal, home and car loan pricing.
ICICI Bank
Private bankHome buyers in approved projects and businesses needing working capital lines.
Axis Bank
Private bankCorporate salaried borrowers and SMEs with strong banking.
Kotak Mahindra Bank
Private bankSalaried home buyers and self-employed borrowers with property.
State Bank of India
Public sector bankGovernment employees, home buyers seeking the lowest published rates, and education loan applicants.
YES Bank
Private bankSMEs and self-employed borrowers with property.
FAQs
Working Capital Loan questions, answered
What is the difference between cash credit and overdraft?
Cash credit is a limit against stock and receivables, monitored through periodic stock statements and drawing power. An overdraft is a limit on your current account, often against property or fixed deposits, with fewer monitoring requirements. Both charge interest only on the amount drawn.
What is a dropline overdraft?
A long-tenure overdraft, typically against property, where the sanctioned limit reduces every month or year over the tenure. It gives the flexibility of an overdraft without annual renewals, and is popular with businesses that want a stable facility.
Can I get working capital without collateral?
Yes, at smaller limits: unsecured overdrafts up to ₹50 lakh to ₹1 crore from some lenders for well-banked businesses, and invoice discounting where the receivable itself is the security.
Related products
Sometimes a different product is cheaper. We will say so.
Business Loan
Unsecured business loans from ₹2 lakh to ₹1 crore for proprietors, partnerships and companies, at rates from about 14% p.a., with tenures up to 5 years and minimal collateral requirements.
- Rate from
- 14.00% p.a.
- Up to
- ₹1 Cr
Loan Against Property
Loans against residential, commercial or industrial property from ₹10 lakh to ₹15 crore at rates from about 8.75% p.a., with tenures up to 15 to 20 years and funding up to 70% of market value.
- Rate from
- 8.75% p.a.
- Up to
- ₹15 Cr
Machinery and Equipment Loan
Loans for new and used industrial machinery, medical and construction equipment, from ₹5 lakh to ₹5 crore, at rates from about 10.5% p.a., funding up to 90% of invoice value with tenures up to 7 years.
- Rate from
- 10.50% p.a.
- Up to
- ₹5 Cr
Guides
Read before you apply
Get your working capital loan shortlist.
Share your requirement in two minutes. Our credit desk pre-screens your profile and calls with lenders, rates and next steps. No fee, no bureau enquiry.