Lowest Interest Rates – Calculate EMI – Check Eligibility – Fast Approval
from Bank/NBFC – Special Offers
Lowest Interest Rates – Calculate EMI – Check Eligibility – Fast Approval
from Bank/NBFC – Special Offers
Businesses need regular cash inflows to take care of their day-to-day operations. If the working capital requirements are not properly met for a business, it could severely affect its smooth business operations. lifetime free credit card in Jaipur, or Working Capital Loans, are developed to take care of these business requirements. The business may use these funds for any kind of operational expenses including raw material procurement, machinery purchase, overhead costs, debt settlement, inventory costs, etc.
Companies that take cash credit loans must provide collateral to the lender. Even assets like inventory, work-in-progress goods, etc., can be hypothecated in returns for a cash credit loan. Businesses typically have a running account with a particular lender for cash credit loan and use funds from the account whenever the need for working capital arises. Let’s check out the different aspects of cash credit loans and the different lenders in the industry who offer these loans.
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Among the easiest loans to get is a secured loan. That’s where you put up something of value in exchange for cash.
Cheapest personal loans are those loans which are available on lowest interest rates than market rates.
Fast, hassle-free. Personal Loan up to ₹500 Crore· Affordable interest rate starting from 11.99% p.a.
Secured loans are loans which require the borrower to pledge an asset or security to avail the loan.
| Banks/Lender | Interest Rate | Maximum Loan Amount | Maximum Loan Tenure |
|---|---|---|---|
| ICICI Bank | 10.4% to 11.5% p.a. | At the discretion of the bank | As per the discretion of the bank |
| HDFC Bank | Contact the bank for details | Valuedraw – Rs.25 lakh Elitedraw – Rs.10 lakh to Rs.25 lakh | Contact the bank for details |
| IDBI Bank | Contact the bank for details | Varies based on the value of the collateral. | Contact the bank for details |
| Bajaj Finserv | 18% p.a. onwards | Rs.30 lakh | 96 months |
All loans are not created equal, personal loan has become a great option for people to use.
Some of the eligibility criteria outlined by lenders for cash credit loans are given as follows:
Most lenders require a minimum age of at least 25 years for the business owner. However, this criterion is likely to vary among the lenders in the market. You may have to contact the company to know the age limit required for this loan.
A business vintage of at least three years is good for securing this loan. Business vintage refers to the number of years the business has been in operation. This requirement is also likely to vary among lenders in the market. Some lenders provide loans for companies with a business vintage of just one year.
Some lenders expect businesses to have filed IT returns for at least one year. This proof must be submitted to the lender while applying for a loan.
Proprietorship firms, partnership firms, publicly traded companies, limited liability companies, etc., may apply for working capital loans. Some lenders have certain restrictions on the type of companies that can apply for working capital loans. You can contact the lender to know more details about this.
The applicant must submit the following list of documents to avail a cash credit loan:
Financial statements certified by a CA
Bank account statement for at least 6 months
IT returns for at least a year
Loan repayment record (if applicable)
The borrower must consider the following things while applying for a cash credit loan:
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Cash Credit Limit by Munafawala.com offer businesses to meet their working capital requirements
Get Started NowSome lenders in the market accept liquid securities as valid collateral. However, some lenders accept only real estate properties or inventory as collateral. You need to check with your lender to know if it is acceptable to use liquid securities.
This varies among lenders in the market. Some lenders provide loans within just 24 hours. However, there are lenders who take a few days to process the loan application and disburse the amount.
Working capital loans are mostly offered only after pledging collateral. If you wish to opt for unsecured loans, you may take a personal loan and use it for your business needs. However, unsecured loans come with high interest rates based on your loan quantum, repayment terms, annual earnings, and credit score.
Cash credit loans are ideal for individuals who have trouble meeting the operational expenses of the business. Businesses have to spend money on their everyday operations. Companies that have inadequate cash inflow can use a running account for working capital and benefit the most from it. It is also beneficial for seasonal businesses that have exponential sales only during certain months of a year.
All major lenders charge a processing fee on the loan amount. If you miss a scheduled payment to the lender, you may have to pay penal charges. Other charges like commitment charges, stamp duty charges, stock audit charges, conversion charges, cheque bounce charges, etc., may vary from one lender to another.
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