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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 from 1% to an average of 2% 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 3%, no other hidden costs or charges.

  8. Flexible Repayments

    Monthly or bi-weekly instalments available for your convenience.

Benefits of Working Capital Loan by Lendingkart

Lendingkart 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, Lendingkart 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 Rates15 to 27% *
Processing Fees2-3%
Loan Tenureup to 3 years
Pre-closure ChargesNil**
Eligibility Criteria> ₹ 90,000 turn over for 3 Months
Loan Amount₹ 50,000 – ₹ 2 crore
InstallmentsFlexible 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

Eligibility Criteria

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

 ProprietorshipPartnershipPvt. Ltd. / LLP / One Person Company
Bank statement (12 months)DocsDocsDocs
Business registration proofDocsDocsDocs
Proprietor(s) PAN Card CopyDocsDocsDocs
Proprietor(s) Aadhar Card CopyDocsDocsDocs
Partnership Deed CopyDocsDocsDocs
Company PAN Card CopyDocsDocsDocs

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

3 simple steps to your working capital loan

  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 SMEs.

  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 FAQs:

The application process is completely online. You can create a free Lendingkart account here or use our mobile app for applying for a small business loan.
You can avail a loan of minimum ₹ 50,000 and maximum ₹ 2 crore for a maximum period of 36 months. The quantum is decided based on your business’s health, revenues and relationship with Lendingkart Finance.
All our working capital loans are unsecured and do not require a security.
If your business satisfies our eligibility criteria and all your documents are in order, the loan will be disbursed to your account within 3 days.
  • Even if you have CC or OD limit, you can have the evaluation done (there are no charges for the evaluation) so that in case of contingency, you can get funds within 24 hours. Also, in case of exhaustion of CC/OD limit, our funds can be utilized.
  • Our product can act as a “standby source of funds” in the sense that you can use them for a month or so, or as and when needed.
Working capital loans are short-term loans, meant for purchasing inventory and maintaining day-to-day operations. Normally, we offer loans for a period of 1 to 24 months. However, a further extension of 12 months (total 36 months) can be availed on a case to case basis.
Term loans are generally given for 3-10 years’ duration and are meant for purchase of capital assets. Working capital loan is primarily for inventory and is generally sanctioned for a period not more than 1 year.
It is a score assigned by Credit Bureaus, based on your business’s financial history. It gives us an idea about the credit worthiness of your business and plays a crucial role in determining interest rates.
Yes. We will check your CIBIL rating.
We take PDCs as a security only in case of default. We will cancel and return the PDCs at your instruction once the cycle is over.
We have rescheduling and late payment charges which are 0.1% of the principal amount per day for the number of days of delay. Late payment charges will be levied on the sanctioned/disbursed amount and not the outstanding amount.
NACH is a facility like ECS wherein the amount will be debited from client’s account on the due dates. This will also eliminate the need for creating standing instructions at client’s end. For the first instalment or till the time, NACH is registered with the bank, client will be required to pay the instalments through RTGS/NEFT/IMPS. Once the NACH is registered with the bank, client will get a mail and a call to this effect and thereafter, instalments will be credited to our account through NACH.
No, we do not charge for foreclosure. Only the interest of current month in which foreclosure is done, will be charged. For example, if the loan is of 3 months duration and foreclosure is done in middle of second month, then only the interest for second month will be payable.
Yes, we do. In such cases, we try to understand the nature of services provided by the client and the reliability of their customer base. We also do an assessment of their working capital needs before processing the loan application.
Yes, you can apply for new product while your current loan with us is running, subject to satisfactory credit evaluation.

Cities we serve

Delhi NCR: Delhi, East Delhi, Gurugram, Faridabad ,Ghaziabad, New Delhi, South Delhi, Noida, Rithala Haryana: Chandigarh, Rohtak, Palwal ,Gurgaon, Rewari, Panipat, Kaithal, Karnal Himachal Pradesh: Shimla, Mandi, Manali, Chamba, Kullu, Rampur Uttarpradesh: Lucknow, Agra, Kanpur, Allahabad, Varanasi, Meerut, Jhansi Punjab: Amritsar, Ludhiana, Jalandhar, Patiala, Firozpur Uttarakhand: Dehradun, haridwar, Mussoorie, Roorkee, Kichha
Odisha: Bhubaneswar, Cuttak, Sambalpur, Berhampur West Bengal: Kolkata, Hooghly, Howrah, Kalyani Bihar: Patna, Sasaram, Nalanda, Aurangabad, Jahanabad, Siwan, Darbhanga, Buxar Jharkhand: Ranchi, Jamshedpur, Dhanbad, Deoghar
Gujarat: Ahmedabad, Vadodara, Surat, Jamnagar, Gandhinagar, Deesa, Porbandar, Bharuch Goa: Panaji, Madgaon , Mapuca , Ponda Rajasthan: Alwar, Jaipur, Ajmer, Behror, Dholpur Maharashtra: Mumbai, Palghar, Pimpri, Ulhasnagar, Thane, Ahmednagar, Aurangabad, Nashik, Nanded
Telangana: Hyderabad, Ranga Reddy, Khammam, Secunderabad, Warangal, Nalgonda, Karimnagar, Nizamabad, Adilabad Karnataka: Bangalore, Mangalore, Hubli, Mysore, Shimoga, Davanagere, Gulbarga, Bellary, Belgaum Andhra Pradesh: Vijayawada, Visakhapatnam, Guntur, Tirupati, Rajahmundry, Kakinada, Amaravati, Kadapa, Nellore, Kurnool, Anantapur TamilNadu: Chennai, Coimbatore, Madurai, Trichy, Salem, Vellore, Erode Kerala: Ernakulam, Kochi, Thiruvananthapuram, Kollam, Thrissur, Malappuram

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