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A Working Capital Loan is one that is availed of to fund the day-to-day operations of a business, ranging from payment of employees' wages to covering accounts payable.

Working Capital Loan

A Working Capital Loan in India refers to a type of financing provided by banks or financial institutions to businesses to cover their day-to-day operational expenses.

This type of loan is specifically designed to help businesses manage their short-term financial needs, such as purchasing inventory, paying wages, covering utility bills, and meeting other immediate expenses.

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Working Capital Loan-

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Following are the procedure steps:

1. Determine the Need:

Before applying for a working capital loan, businesses need to assess their short-term financial requirements. They should identify the purpose of the loan, whether it's to finance inventory purchases, cover operating expenses, manage cash flow fluctuations, or any other immediate financial needs.

2. Choose a Lender:

Research and identify potential lenders who offer working capital loans in India. This can include banks, non-banking financial institutions (NBFCs), and other financial intermediaries. Compare their loan products, interest rates, terms, and eligibility criteria to find the most suitable option for your business.

3. Check Eligibility:

Review the eligibility criteria set by the chosen lender to ensure that your business meets the requirements. Eligibility criteria may include factors such as business vintage, turnover, credit score, financial stability, collateral, etc.

4. Documentation:

Gather the necessary documents required for the loan application. Typical documents may include:

  • Business registration documents (e.g., Certificate of Incorporation, Partnership Deed, etc.)
  • KYC documents of the business owners/partners/directors
  • Financial statements (e.g., Balance Sheet, Profit & Loss Statement, Cash Flow Statement)
  • Bank statements
  • Income tax returns
  • Business plan or project report (if required)
  • Any other documents as specified by the lender

    • 5. Loan Application:

    Fill out the loan application form provided by the lender. Provide accurate information and ensure that all required documents are attached to the application.

    6. Credit Appraisal:

    The lender will conduct a credit appraisal to assess the creditworthiness of the business and determine the risk associated with extending the loan. This may involve evaluating the business's financial health, credit history, repayment capacity, and other relevant factors.

    7. Loan Approval:

    If the lender finds the application satisfactory and the business meets the eligibility criteria, they will approve the loan. The terms of the loan, including the loan amount, interest rate, repayment schedule, and any applicable fees, will be communicated to the borrower.

    8. Loan Disbursement:

    Upon loan approval, the lender will disburse the approved loan amount to the borrower's designated bank account. The borrower can then use the funds to meet their working capital requirements as planned.

    9. Repayment:

    Repay the loan according to the agreed-upon repayment schedule. Ensure timely payments to avoid penalties and maintain a good credit standing with the lender.

Why choose Livanity for Working Capital Loan?

Livanity is a one-stop solution for all your financial needs. Here, we try to provide you best services that are hassle-free and quick in nature. For Working Capital Loan, we provide you a comparative analysis of what different banks are offering. We also assist you in your final decision.

Here are a few reasons for you to apply for a Working Capital Loan at Livanity:

Fast assistance:

At Livanity, you can contact us at any official working hours of the day.

Customer needs in forefront:

Your needs are our priority. We promise to deliver you with services that are best on our capabilities. By handpicking Working Capital Loan offers based on customer profile, we try to give you the most personalized experience.

Compare Offers Online:

With more than 100 lenders as partners, you can compare the different offers of financial institutions to make the right decision. In fact, we help you find the best lender as per your eligibility requirements. There is a personalized relationship lender for every customer who helps him/her select the bank of his/her choice.

Real-time customer support:

Our customer support team is fast and efficient to clear all your doubts regarding loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.

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