For routine and regular operations, any business needs working capital. It practically denotes the cash flow position in the business, which helps it in inventory management, payment of bills for utilities, payment of salaries, and expansion opportunities. 

Depending on the health of cash flow, there may be a squeeze on the working capital. It is in such times that businesses look for working capital loan to tide over the immediate needs for infusion funds so that business operations are not hampered.

Loan Amount

1 lac

2 Cr



6 Months

36 Months


Interest Rate




Principal Amount


Interest Amount


Monthly EMI


Total Amount Payable:


What is working capital?

In common parlance working capital is defined as the difference between current assets and current liabilities. 


You can arrive at working capital needs and your shortfall for an appropriate loan by using the working capital loan calculator. It is a tool by which you can ascertain the contours of your loan comprising the amount, rate of interest, and the tenor to get the tentative EMI. Alternatively, you can also use the working capital loan EMI calculator for the same results. 

It is an indicator which will show if the envisaged loan is viable and your ability to service the loan comfortably. 

Some cardinal points help you in arriving at an ideal loan possibility. Longer the tenure, lower is the interest and the resultant EMI, which will make repayment easier.

Why do you need a working capital loan?

The primary reason for a working capital loan is to fund short term operational needs. The general business model followed in India is heavily dependent on cyclical sales. As such, many enterprises do not have adequate revenues in equal measure all through the year, putting a strain on business in certain periods. Let us check them out:

  • Seasonal Fluctuations:  It is most common to face slump of sales in offseason and pick up in the season. 
  • Slim Cash Reserve: Every business needs a cash cushion to tide over emergencies. 
  • Irregular Cash Flow: This can happen for several reasons when pending invoices pile up affecting inventory management, ultimately slowing down the cycle and increasing the turn over time. 
  • Fail to Capitalize: It is not wise to let go off a business opportunity for want of adequate funds. 

Benefits and features of working capital loan:

Any loan is the last resort, but no business can do without it. It is thus sensible to check for the loan size using SME working capital loan calculator to enable you to borrow what you can comfortably repay. The inevitability of loan makes it crucial to check its features and benefits:

  • Most working capital loans are unsecured and thus free of any collateral.
  • You get flexible options of short term loans and overdraft facility or line of credit, which is a rolling loan.  You can define the contours with the help of a working capital line of credit calculator.
  • Speedy disposal of application is the norm in case of working capital loan. 
  • Interest on a working capital formula applied in short term loans result in imposition higher rate. 
  • Flexibility in the use of funds as long as it is used in operations and an increase in revenue. 
  • Lendingkart disburses the loan within a maximum time of 72 hours.

Eligibility Criteria:

There are two aspects to the eligibility criteria. As far as the amount is concerned, using a working capital loan eligibility calculator is fruitful. The other factors are listed below:

  • The applicant must be over 18 years of age.
  • The constitution of the business should be Proprietorship, Partnership, Limited Liability, or Private Limited Company.
  • The turnover should be over Rs.90000 during the preceding three months or as specified by the lender. 
  • The business should be operational for a period specified by the lender. 
  • Business activity and location should not be in the negative list

What are the different types of working loan products in the market?

There are a host of products to suit every need. Some of the common types are enumerated below:

Documents required:

It goes without saying that the documentation will depend on the constitution of the business. Still, the general list could be:

  • KYC documents of the applicant as well as the Business, including the PAN card.
  • Proof of business existence, including registration certificate and requisite licenses.
  • Partnership Deed or Memorandum of Incorporation / Articles of Association if applicable. 
  • Financial statements sought by the lender. 

How to apply for a working capital loan?

Most lenders offer an online facility for a working capital loan. While in the case of banks, it is only an expression of interest, lenders like Lendingkart offer a fully digital platform for the entire cycle. Let us check out the steps.

  • Visit the portal and apply for the appropriate loan.
  • Upload the requisite documents in digital format. 
  • Wait for evaluation and interest on working capital calculation by the lender, to offer a fair loan.
  • Acceptance and sanction of the loan.
  • Disbursal.

Fees and Charges:

Cost of capital being important, it makes sense to access working capital loan interest calculator to arrive at the interest outgo. However, other charges and features are equally important.

Rate of interest 

15 to 27% depending on the tenure and credit rating

Processing fee

1 to 2% of the loan amount upfront

Foreclosure fee


Repayment Method 

ENI or fortnightly


Up to 24 months



Working Capital Loan Calculator FAQs:

1.What is the total quantum of working capital loan?

The range is from Rs.50K to Rs.2C.

2. Which business constitutions are ineligible for a working capital loan?

Charitable Institutions, Trusts, and NGO are not eligible to apply for a loan.

3. What are the important factors for interest calculation on working capital loan?

The factors can be defined in the following:
  • Purpose of the loan.
  • Size and scale of business
  • Size and tenor of the loan
  • The creditworthiness of the applicant.

4. Who are the lenders who extend the working capital loan?

Banks, NBFC and Digital NBFC like Lendingkart.

5. What are the basic forms of the working capital loan offered to the borrower?

They are basically of two types – Term and Overdraft/ Line of Credit.

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