Revolving line of credit to manage everyday expenses. Draw, repay and reuse to stay cash‑flow positive.
Withdraw funds beyond your bank balance up to a pre‑approved limit interest charged only on what you use.
Structured loan with predictable EMIs aligned to your repayment capability.
Convert outstanding invoices into instant cash to keep operations running without waiting for payments.
To qualify for a working capital loan, your business typically needs to meet the following requirements
Don’t let cash flow gaps slow down your operations. Apply for a Working Capital Loan today and get access to funds quickly, with flexible repayment options.
MSMEs, SMEs, traders, merchants, retailers, schools, construction companies and service providers can apply for a working capital loan, if they have met basic eligibility criteria such as minimum turnover and business vintage.
A working capital loan for MSME is specifically structured to meet the operational funding needs of Micro, Small, and Medium Enterprises. It helps MSMEs manage cash flow gaps, purchase raw materials and handle operational expenses efficiently.
An MSME working capital loan can be availed as a term loan, overdraft or cash credit facility. Businesses repay the loan in fixed EMIs or flexible repayment structures depending on the lender.
Yes, many lenders offer a fully digital working capital loan online with minimal paperwork, quick eligibility checks and fast disbursal. Online working capital loans are ideal for businesses looking for quick capital financing.
You can apply for a working capital loan by
Common working capital loan documents include
Working capital loan eligibility depends on
The working capital loan interest rate for MSMEs typically ranges from 9% to 24% per annum, depending on the secured and unsecured credit profile and loan type decided by the bank and non banks.
Interest on a working capital loan is calculated based on
Working capital loan calculation is usually based on
Working Capital Requirement = Current Assets - Current Liabilities
This helps determine the short term funding required to run daily business operations.
Key working capital loan benefits include
Yes, many lenders offer collateral free working capital loans, especially for MSMEs and large businesses with good credit history.
Yes, working capital loans for schools are available to cover staff salaries, infrastructure maintenance and operational costs with quick approval options.
Yes, working capital loans for construction companies and construction equipment are available to fund labor costs, raw materials, and project related expenses.
The working capital loan procedure includes
Yes, reliable working capital loans for merchants and retail stores are widely available with quick approval and flexible terms to manage inventory and supplier payments.
A business capital loan is often used for expansion or asset purchase, while a working capital loan is meant for short term operational expenses.
Yes, MSMEs can avail machinery loans for MSME along with working capital loans to support both asset purchase and operational funding.
Working capital loans for small businesses help manage cash flow gaps and fund operational expenses with flexible repayment options.
Yes, real estate working capital loans help developers and brokers manage operational costs and short term funding needs.
You can get capital finance by applying for business working capital loans, MSME loans, or business capital finance services offered by banks and NBFCs.
A working capital loan without collateral is an unsecured business loan that helps companies manage daily operational expenses such as salaries, inventory purchase, rent, vendor payments, and cash flow gaps without pledging property or assets as security. Approval is typically based on business turnover, bank statements, credit profile, and repayment capacity.
Common types of working capital financing include term loans, cash credit facilities, overdraft facilities, invoice or bill discounting, business lines of credit, and unsecured business loans. Each financing option supports different business needs, from short-term cash flow management to ongoing operational funding.
Invoice financing allows businesses to receive advance funds against unpaid customer invoices. Instead of waiting for payment cycles, companies get immediate liquidity to maintain operations and repay the lender once customers clear their dues.
A working capital loan provides a fixed loan amount repaid through scheduled EMIs, suitable for planned operational expenses. An overdraft facility allows businesses to withdraw funds beyond their bank balance up to an approved limit, paying interest only on the amount used, making it ideal for temporary cash flow shortages.
Banks offer lower cost but gradual processes NBFCs provide flexibility for thin file borrowers, fintechs are fastest for data driven credit but may have higher pricing.
Lenders look at invoice age, buyer creditworthiness, and whether invoices are clean (no disputes). Younger invoices get higher advance rates.
Yes, businesses can refinance existing working capital loans to secure lower interest rates, reduce EMIs, improve cash flow or obtain additional funding through better repayment terms suited to current business needs.
Lenders buy or fund against your unpaid invoices to unlock cash immediately; factoring often includes collections services while discounting keeps receivables management with you.
Overdraft is a flexible bank limit on a current account; cash credit (CC) is a funded limit against stock/receivables with an operational account and typically more structured monitoring.
Export finance may use post-shipment or pre-shipment limits, packing credit, or buyer-credit and often requires documents like bills of lading and import/export declarations.
CGTMSE loans are best suited for manufacturing units, traders, micro and small businesses, service providers, that need business funding without providing collateral. Entrepreneurs seeking loans for working capital, machinery purchase, or business expansion often benefit most because the scheme allows collateral-free funding through eligible banks and financial institutions.
To apply for a CGTMSE loan, businesses must approach a bank or NBFC or for a better solution entrepreneurs may take proper guidance from consultants like KFIS experts who help to get loans under the scheme with end to end support. Applicants submit business details, project plans, financial documents, and KYC records. Once the lender approves the loan, it is automatically covered under the CGTMSE guarantee program without requiring separate collateral from the borrower.
The scheme is available for new and existing Micro and Small Enterprises (MSEs) engaged in manufacturing or service activities. Eligible applicants include startups, small manufacturers, traders, and service providers seeking funding for working capital or business expansion, provided they meet lender credit and repayment criteria.
The CGTMSE scheme provides credit guarantee support to lenders offering collateral-free loans to MSMEs. It helps businesses obtain funding without pledging property or assets, while lenders receive guarantee coverage for a portion of the loan amount in case of default, encouraging easier credit access for small businesses.
Under the current framework, eligible businesses can obtain collateral-free loans up to 10 crores depending on lender policies, borrower profile, and business repayment capacity. Loan limits and guarantee coverage vary based on updated scheme norms and bank assessment
No, one of the biggest benefits of the scheme is that borrowers usually do not need to provide additional collateral security or third-party guarantees, making it easier for startups and small businesses to access credit.
Loans are offered through banks and financial institutions participating in the credit guarantee framework promoted by the Government in partnership with Small Industries Development Banks in India, which supports MSME financing across India. Expert consultants like KFIS help businesses to acquire the scheme.
We are a company that has been providing end to end lifecycle support for business portfolios since 2000. Our goal is to help entrepreneurs and small business owners get the financial assistance they need to grow and thrive in their industries.
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32/N4 Jawaharlal Nehru Salai,
Ekkatuthangal, Chennai- 600032
+91-8939000056
khannanfinance@gmail.com
