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WCTL

Working Capital Term Loan

Fixed EMIs to reset a stretched cash cycle.

Structure: Term loan with fixed EMIs
Loan amount: Up to ₹5 Cr
Interest rate: From 11.50%* p.a.
Tenure: 12 — 60 months

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At A Glance

Purpose: Fund a working-capital gap, or regularise a stretched cash credit or overdraft
Who can apply: A viable business with a working-capital gap and audited or CA-certified statements

See all 6 requirements

The Short Version

What Working Capital Term Loan actually does for you.

A working capital term loan gives your business a term loan with a fixed repayment plan and a fixed EMI. It can turn an overdrawn or irregular working-capital account into a loan your cash flow can handle, or fund your day-to-day needs. It can be offered without collateral to businesses with clean, audited financials. The lender decides the amount based on your bank turnover and filings, not only a quick GST check.

What's included

Fixed EMI on a defined repayment schedule
Regularises stretched cash-credit or overdraft accounts
Consolidates several short-term dues into one facility
Can be offered without collateral to businesses with clean financials
Offers compared across several lenders before you commit
Part-prepayment allowed once the initial lock-in ends
Top-up available after a clean repayment run
Moratorium period available with select lenders
Can run alongside a freshly sanctioned working-capital limit

Do you qualify?

A viable business with an identifiable working-capital gap
Audited or CA-certified financial statements, usually for 2 to 3 years, as per the lender
Consistent bank credits through the preceding 12 months
A good credit record; a CIBIL score of 680 or higher may be asked for the business and its promoters
Promoter contribution where the lender asks for one
Business owner or self-employed professional with a steady income, as a proprietorship, partnership, LLP or company

Which One Are You

Proprietor / ProfessionalYou run a business in your own name, or practise a profession such as medicine, law, accountancy or architecture. There is no separate company, so the lender looks at you and the business together: your ITRs, your financial statements and your business bank account. Clear books and returns filed on time help a lot.

Partnership / LLPThe business is a partnership firm or an LLP. The lender checks the firm's registration, its financials and its bank statements, and also the standing of each partner, so every partner's KYC and tax returns are usually needed. A signed partnership deed that allows borrowing keeps things smooth.

CompanyThe business is a private or public limited company. The lender checks the incorporation papers, the directors and the shareholding, the company's audited financials and its bank statements. A board resolution authorising the loan is usually needed, and directors may be asked to stand as guarantors.

Documents Required (Checklist)

For Self-Employed

Proprietor's KYC: PAN, Aadhaar and address proof
Business proof: GST registration, Udyam, shop licence or equivalent
Last 3 years' ITR with computation of income
Last 3 years' financial statements (P&L and balance sheet), audited where applicable
Last 12 months' current and savings account statements
GST returns for the last 12 months, where registered
Details of existing loans, with EMIs and statements

For Every Applicant

KYC (PAN, Aadhaar, address proof)
Audited financials and existing sanction letters

This is the usual list for each type of applicant. Get the exact checklist for working capital term loan, sent as a PDF you can save or print.

Fees and other charges

Besides interest, a lender may charge a few fees. It helps to know them before you apply, so there are no surprises.

Processing fee

A percentage of the loan amount plus GST. Loans without security often cost more, roughly 1% to 3%, and secured loans are usually lower. It varies by lender and profile.

Documentation and other charges

Some lenders add a small fixed fee for documentation or a statement of account.

Foreclosure and part-prepayment

Closing the loan early may carry a charge, usually a percentage of the outstanding amount, and some lenders allow it only after a minimum period. Ask before you prepay.

Inspection, valuation and legal charges

Where the loan is backed by stock, receivables or property, the lender may charge for inspections, valuations or a legal check.

Our service fee

For this facility we charge a service fee for taking your file from lender shortlist to disbursal. It covers comparing lenders for you, preparing and checking your documents, answering the lender's queries and following up until the money reaches you. We tell you the amount in writing before you go ahead, so you know exactly what you are paying and nothing comes as a surprise.

These are general guides and every lender sets its own fees. Your expert will share the exact charges in writing before you sign.

Why Growth Capital Services

One conversation, many lenders to compare.

We are a loan consultant, not the lender. We help you compare options from 75+ Banks and NBFCs, prepare your documents, and follow your application through each step.

Check Your Eligibility Talk to Our Loan Expert

Important note: Interest rate, loan amount, tenure, charges, eligibility, approval and disbursement depend on the policy of the respective Bank or NBFC, your profile, credit assessment and the applicable terms. Growth Capital Services is a loan consultant and does not lend money itself. The details on this page are for general information.

Run the numbers

Calculators for your Working Capital Term Loan

Try your own figures before you apply — nothing is saved or sent.

Exclusive to GCS

Working Capital Limit Estimator

Based on the RBI Nayak Committee turnover method used by most banks for MSME Cash Credit, Overdraft, CGTMSE and Working Capital Term Loan limits.

Projected Annual Turnover

₹2.00 Cr

₹1 L₹50 Cr

Working Capital Gap

₹50.00 L

25% of turnover

Your Margin Money

₹10.00 L

5% of turnover

Indicative Bank Finance

₹40.00 L

20% of projected turnover — the portion typically financeable via Cash Credit, Overdraft or a Working Capital Term Loan. Actual sanction depends on financials, banking history and lender policy.

Talk to an Expert

Step-by-step guide

Working Capital Term Loan process, step by step.

A working capital term loan gives you fixed repayments for your business cash needs. Here is how we arrange it.

Tell us what you need

Share the amount, why you need it, any dues that are stretched, and whether you can offer security.

Review your finances

We look at your cash flow, existing loans, bank statements and credit record.

Compare and structure

We compare lenders on rate, fees and EMI, and plan a repayment period your cash flow can carry.

Documents and approval

You submit KYC, financials and bank statements, and the lender reviews and approves.

Disbursal and fixed EMIs

The funds arrive and you repay in fixed monthly instalments.

With GCS, your expert looks at your profile, matches it with suitable lenders, and coordinates with the banks for you. That means less confusion and more confidence when you apply.

Worth Comparing