Working Capital Funding
Keep operations running smoothly through cash-flow gaps.
Flexible working-capital facilities — including OD, CC and Drop-Line OD (DLOD) — to fund day-to-day operations, inventory and receivables. Interest starting 7.75% p.a., with tenure up to 12 months and easy annual renewal.
Interest rates and terms are indicative and subject to lender approval.
Working Capital Funding
Key features
- Interest starting 7.75% p.a.
- Overdraft (OD), cash-credit (CC) & Drop-Line OD (DLOD)
- Tenure up to 12 months + annual renewal
- Interest only on utilisation
- Secured & unsecured options
Eligibility
- Operating business with turnover
- Banking track record
- Collateral for higher limits
Documents
- KYC & business proof
- GST & bank statements
- Stock & debtor statements
- Financials
In depth
Understanding Working Capital Funding
Working capital is the funds a business has available to fund its day-to-day operations and meet short-term obligations.
- The Formula
- Working Capital = Current Assets - Current Liabilities.
- Key Components
- Current Assets (Cash, receivables, inventory) and Current Liabilities (Accounts payable, short-term debts).
- What the Results Mean
- Positive Working Capital indicates you can cover immediate expenses. Negative Working Capital signals liquidity stress.
- Smart management
- Accelerate accounts receivable and strategically manage your payment terms with suppliers.
Regulatory source
RBI provides broad guidelines (historically based on Tandon/Chore committees) allowing banks to frame board-approved policies for assessing working capital requirements.