Working Capital Loan
Keep operations running smoothly — fund inventory, receivables and day-to-day expenses. Compare offers from our RBI-regulated bank & NBFC partners — free, with a dedicated advisor.
What is a Working Capital Loan?
A working capital loan funds the gap between paying suppliers and collecting from customers — inventory, receivables, salaries and other day-to-day costs. It is usually structured as a revolving limit (cash credit or overdraft) where you pay interest only on the amount drawn, or as a short-term loan or invoice-discounting facility. Limits are typically reviewed and renewed every year based on your turnover and current assets.
LTV / collateral: Against stock & receivables — drawing power set by the lender based on current assets.
Why take it through Kredistar
- Interest only on the amount drawn
- Cash credit, overdraft, short-term loan and invoice-finance options
- Limits from ₹2 lakh to ₹5 Crore
- Annual renewal with limit enhancement as you grow
- One application compared across our bank & NBFC panel — zero fee to you
Types of Working Capital Loan
Revolving limit against hypothecation of stock and book debts, renewed annually.
A credit line on your current account, secured or unsecured; interest only on usage.
A fixed amount for 6–36 months to meet seasonal or one-off needs.
Immediate funds against unpaid invoices, including via TReDS platforms for MSME sellers.
An OD limit that reduces every month, combining flexibility with scheduled repayment.
Eligibility
- Operating business with 2+ years of vintage
- GST registration and regular filings
- Stable turnover and banking history
- Satisfactory business and personal credit scores
Documents
- PAN & Aadhaar of proprietor / partners / directors
- Udyam / business registration proof
- GST returns — last 12 months
- Bank statements — last 12 months
- Stock & debtor statements (for cash credit)
Do’s
- Submit stock and debtor statements on time to keep your drawing power
- Use the limit for operations, not for buying fixed assets
- Compare renewal and inspection charges, not just the rate
- Keep receivables collection tight to avoid limit overuse
- Plan for seasonal peaks before they arrive
Don’ts
- Don’t stay at 100% utilisation for long — lenders see it as stress
- Don’t let the limit lapse by missing annual renewal
- Don’t route sales through other accounts — it reduces your eligible limit
- Don’t fund long-term assets with short-term money
- Don’t ignore penal charges for overdrawing
Estimate your Working Capital EMI
Indicative calculation on a reducing-balance basis. Excludes processing fee, GST and other lender charges.
Working Capital Loan — common questions
How is my working capital limit decided?
Do I pay interest on the full limit?
Is collateral required?
How often is the limit renewed?
Our banking & NBFC partners
Loans are sanctioned and disbursed by these RBI-regulated lenders. Kredistar is their sourcing partner (DSA) — compare them and apply in one place.
Indicative starting rates published by lenders (Oct 2026) — your rate depends on your profile. Names and logos are trademarks of their respective owners, shown only to identify our lending partners.
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