Multiple banks. Different interest rates. Call it a "conflict of interest".
  • Personal Loan BYTES FROM OUR KITCHEN

    Working Capital Loan

    What is Working Capital Loan?

    Working capital loans are loans taken by business organizations for financing their routine, day-to-day operations. These loans are usually taken to cover costs such as employees’ wages or cover accounts payable. Working capital loans are usually taken by organizations which have extremes in their sales cycles and require funds during times of reduced business activity. Working capital loans may be secured or unsecured.

    Working capital loans are not meant for long term investments or assets purchases. These are usually used for purposes such as clearing up wages, account payable etc. As such, these loans are meant to allow businesses to continue operations daily even when they don’t have the required operating expenses. The loans are a way to ‘buy time’ so as to look for avenues for revenue generation while continuing general operations.

    There are multiple modes of disbursal of working capital limits such as letter of credit, letter of guarantee, bills limit, and cash credit, among others. In general, banks will not ask for collateral security or third party guarantees in case the borrowed amount is less than Rs.1cr though individual banks have different criteria for releasing these loans. You are advised to check individual products from banks to ascertain the eligibility criteria.

    Benefits of Working Capital Loan

    • Cash credit or overdraft facility to meet day to day business requirements.
    • Export credit facility to offer pre and post shipment capital to exporters.
    • Wide range of bank guarantees to meet obligations of performance and finances.
    • Buyer’s credit and letters of credit as non-fund based facilities for clients.
    • Easy processing and disbursal.
    • Available from a wide range of lenders and at competitive rates.
    • Ensure continuation of day-to-day operations without worrying for short term financial needs.
    • Large amounts for eligible clients.

    Major Banks offering Working Capital Loan

    ICICI Bank, HDFC Bank, Axis Bank, State Bank of India, Indian Overseas Bank, Bank of Baroda and several other public and private sector banks offer these loans.

    Working Capital Loan FAQs

    What is the structure of working capital loans?

    The loans are structures as per the specific requirement of a client. This means the loans may be available in any instrument separately or as a mixture of cash credit, bill financing, demand loan and non-funded facilities. The solutions are designed to suit each individual requirement in an optimized manner.

    What is the approval process for these loans?

    The loans are generally approved after the credit team of a lender verifies all the aspects of the application and tailors its solution to meet the client’s needs.

    What are general tenures of working capital loans?

    Each bank has its own tenure limit for working capital loans. In general, these loans have a tenure of up to 1 year, though higher and lower tenures are also available. Some specific self-liquidating lending are connected to the normal tenure of transaction such as export credit, bill finance etc.

    How are these loans priced?

    The Working capital loans are generally available on floating interest rate.

    Working Capital Loan Reviews

    • ICICI Bank Personal Loan
      "Good overall"
      0.5 5.0/5 "Blown Away!"
      My personal loan is with ICICI Bank and it was a good experience. The process is good and the loan was provided to me on time and as needed. The rate of interest and the processing charges is nominal and there are no hassles in the after loan services.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Excellent experience"
      0.5 5.0/5 "Blown Away!"
      The experience is good overall at Bankbazaar as they contacted me on time and informed me the details. The process was easy as I was able to get my details on time. The website is also good and it is informative and useful as well. From next time will apply for loan through this channel.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "ROI is high"
      0.5 5.0/5 "Blown Away!"
      HDFC Bank has offered me a personal loan with a zero processing fee. The rate of interest is on the higher side. It is of 16%. After the document collected the loan got approved. But the disbursement took very long, I got the loan after almost 25 days.
      Was this review helpful? 0
      , jorhat
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      There are no hassles with Bankbazaar, as I received a response on time and there are no issues to get connected with the bank. The portal is also good and it is easy to understand and use and apply for the loan. There are follow up calls as well in the process.
      Was this review helpful? 0
      , jaipur
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Experience is good"
      0.5 5.0/5 "Blown Away!"
      I have taken my personal loan with HDFC Bank. The customer services and response is good and I got the loan with ease and on time. They are also normal on the rate of interest and processing charges. In all no hassles in the documentation process.
      Was this review helpful? 0
      , jaipur
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Fast process"
      0.5 4.0/5 "Great!"
      The experience with Bankbazaar is good and there are no hassles in the process. The customer services and response is very fast. They been on time to contact me and they are helpful too. The website is also good and it is easy to understand and place a request.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Need to improve overall"
      0.5 3.0/5 "Satisfactory"
      After me applying for a personal loan with HDFC Bank. The documents was collected on time. After which the process for the loan took three weeks which is almost like 25 days to get the funds. I have not received the loan letter yet. I have not got any confirmation about the EMI due date and also what is the interest rate and processing fees.
      Was this review helpful? 0
      , haridwar
      Reviewed on Jan 15, 2019
    • ICICI Bank Personal Loan
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I also have a personal loan with ICICI Bank. The customer services are good and the process was on time. I did not face any delay and the documents was collected on time. I received the loan within a week. The rate of interest and the processing charges is normal.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Supportive services"
      0.5 4.0/5 "Great!"
      There were no delay with Bankbazaar.com, and the customer services and the response is good. They were on time to contact me and inform me the details. The website is also satisfactory and it is easy to understand and it is informative as well. Mr. Vijay was very supportive in the whole process.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Good. Can do better"
      0.5 4.0/5 "Great!"
      HDFC Bank has also offered me a personal loan. The process was quick and I got the loan on time. The rate of interest is of 18% and there were processing charges as well. The loan amount is not as expected. I asked for 5.5 lakh and I received 2.5 Lakh.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Excellent experience"
      0.5 5.0/5 "Blown Away!"
      Bankbazaar has been really good overall. The website is satisfactory as I can check the bank offers. The services was on time to contact me and inform me the details. There were follow up calls as well in the process. In all a hassles free experience.
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Good overall"
      0.5 5.0/5 "Blown Away!"
      I had my personal loan with HDFC Bank. The process to get the loan is good. The documentation is normal too. I needed a loan of five lakhs but I received only two lakhs for the rate of interest of 10%. There was a processing fee as well. The customer support is fine.
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Services are satisfactory"
      0.5 4.0/5 "Great!"
      There were no hassles at Bankbazaar.com as the contacted me on time and informed me the details. The customer services and response is good and there are no issues. The website is also fine and it is easy to use and understand and place a request.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • IndusInd Bank Personal Loan
      "Experience is good"
      0.5 4.0/5 "Great!"
      I have a personal loan with Indusind Bank. The process to get the loan is fine. The rate of interest is around 11.5% with a zero processing fee. The loan was provide on time and the documentation was collected on time too. I received the loan amount as expected.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Good. Can be more quick"
      0.5 3.0/5 "Satisfactory"
      After I applied at Bankbazaar I received a call and the process started off for the loan. I got the details of the banks and their offers. The website is also easy to use and it is informative as well. It would be better if the process is more sooner.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 15, 2019
    • HDFC Bank Personal Loan
      "Good. Can be more sooner"
      0.5 3.0/5 "Satisfactory"
      I have taken my personal loan with HDFC Bank. The process to get the loan was delayed, I got it after one and half week. The documentation was collected late. The rate of interest of 11.25% and there was a processing fee too. The loan amount was as expected.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 15, 2019
    • Bank Bazaar Personal Loan
      "Awesome one stop shop "
      0.5 5.0/5 "Blown Away!"
      Various option available in Bank Bazaar, rather going to direct financier. here we can analyze the real information in website without going anywhere. I am using the site for past 2 months, the portal is good to post the request. The customer support team gave me the proper information.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 14, 2019
    • Tata capital Personal Loan
      "Satisfactory Experience"
      0.5 4.0/5 "Great!"
      I am satisfied with Tata Capital documentation part and they have fulfilled the commitment on my personal loan. The interest rate is quite nominal they gave me the same thing which provided by other banks. Even the door step documentation process is good.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 14, 2019
    • Axis Bank Personal Loan
      "Reduce the charges"
      0.5 5.0/5 "Blown Away!"
      I took my personal loan in Axis Bank before 4.5 years back and its been completed before 5 to 6 months have taken top-up loan. The customer service is very good. The charges are more compared to other banks. The loan duration is 5 years. Monthly installment is 5600 rupees through net banking.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 14, 2019
    • Bank Bazaar Personal Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The customer service and response was better. I have been using the bank bazaar website for past 2 years, It was helpful to take credit card,loans and to check the credit score. Am comfortable with the mobile app. Most I like the responsibility is very good and process was simple.
      Was this review helpful? 2
      , bangalore
      Reviewed on Jan 14, 2019
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