What is a Working Capital Loan?

2 min read

A working capital loan is a financing option designed to help you meet your business's short-term operational requirements. It's there to cover your day-to-day expenses, like payroll, rent, and debt payments. You can use this type of credit to manage cash flow gaps that might occur due to seasonal changes or unforeseen costs. You can obtain these loans from banks, online lenders, or other financial institutions, ensuring you have the liquidity necessary to sustain your daily operations and expand your business.

What is the interest rate on a working capital loan?

The interest rate on a working capital loan can vary depending on several factors, including the borrower's creditworthiness, the lender's policies, market conditions, and the duration of the loan. Borrowers with strong credit profiles and stable business performance may qualify for lower rates, while those with less favourable credit histories may face higher rates.

How to calculate interest on working capital loans?

Calculating interest manually on your working capital loan is a lengthy task and might result in erroneous results. You can use our working capital loan calculator for error-free results and calculate total interest payable in a few easy steps. You need to enter the loan amount, tenor and rate of interest, and this online tool will provide you with the total interest payable and EMI amount instantly.

Bajaj Finserv offers working capital loans up to Rs. 55 lakh at interest rates starting from as low as 9.75% - 30% p.a. that can be repaid conveniently in EMIs up to 96 months. Such loans not only give you significant capital to manage short-term business expenses but also offer added benefits like an online account facility, special pre-approved offers and more. Further, you can avail of these loans in just 48 hours* by submitting only two documents.

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Frequently asked questions

How do you calculate the interest rate on a working capital loan?

Our online Business Loan EMI calculator allows you to estimate the potential EMI for your required loan amount. The interest rate for your business loan is determined by your lender, considering factors such as loan amount, tenure, and credit history. Once you have the interest rate and loan details, you can utilise our EMI calculator to compute your monthly installments, aiding you in effective EMI planning and on-time repayment management.

What is the interest rate for working capital loans?

The rate of interest for our working capital loans is between 9.75% and 30%.