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Working Capital Limits

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The capital of a business which is used in its day to day trading operations.

Every business need funds for two purposes for its establishment and carry out its day to day operations. Funds are needed for short term purposes for purchase of raw materials, payment of wages & day to day expenses etc.


  • Running account facility for a short term period,on renewable basis.

  • Funding would be provided against hypothecation of stocks & book debts with a minimum margin of 20% to 25% .100% collateral security taken.Multiple collateral options & best interest rates.

  • A limit is extended in your current a/c allowing you to withdraw any amount up to the sanction limit.

  • Interest is charged on the amount used on a daily outstanding basis.

Borrowing Criteria for Working Capital

  • Business should have a turnover of at least 5cr & should be earning profit as per the last 2 years.

  • The borrower should have experience of 2 years & the business should be in existence for a minimum 2 years.

Working Capital Facilities for Cash Credit, Over Draft, Letter of Credit, Guarantees.

  • Over draft/Cash credit: OD /CC Facilities to various segments of customers for their working capital requirements.This is a fund based facility to help fund business inventory (raw materials, & finished goods)& receivables(debtors).cash credit /over draft facility to meet your every day requirements.

  • Bank Guarantees: : Various types of bank guarantees to meet performance & financial obligations.

  • Letter of Credit: : To ensure timely delivery of goods.

  • Term Loans: Loans for business expansion.

    The best use of a term loan is for construction; major capital improvements; and large capital investments, such as machinery; working capital; and purchases of existing businesses.

    Term loans are most appropriate for established small businesses that can leverage sound financial statements and substantial down payments to minimize monthly payments and total loan costs. Term loans require collateral and a relatively rigorous approval process but can help reduce risk by minimizing costs. Before deciding to finance equipment, borrowers should be sure they can they make full use of ownership-related benefits, such as depreciation, and should compare the cost with that leasing.

    *  Intermediate-term loans. Usually running less than three years, these loans are generally repaid in monthly installments.

    *  Long-term loans. These loans are commonly set for more than three years. Most are between three and 10 years.

    *  Term loans are a good way of quickly increasing capital in order to raise a business’ supply capabilities or range.

    *  monthly or quarterly repayment schedules and include a set maturity date.


1. Financials
  • Last 3 years audited financials, provisional financials(audited financials to include balance sheet,profit & loss a/c along with schedules and notes to accounts. Tax audit reports ,Statutory audit report) in case of provisional financials.

  • Last 2 years income tax returns of the borrowing entity (along with computation of income & copy of acknowledgement)

2. Bank statements
  • Latest 6 months bank statements. Statements covering minimum 70% banking turn over are to be provided.

3. Month on month sales in letter head.
4. List of creditors & debtors break up.
5. Vat & gst registration certificates and GST returns.
6. Self attested copy of kyc documents.
  • Entity proof:Pan card of entity,proprietors /partners/directors/security providers.

  • Address proof of entity & partners/proprietors/all directors.

7. Government approvals for power, pollution.
8. Building plan along with documents proof.