Business Loan · Instant Approval

Working Capital Loan

Revenue delayed but expenses due? A working capital loan — also called an operating capital loan — puts quick funds behind inventory, payroll, rent and other running costs without touching long-term capital. Compare working capital offers from top lenders on Janmudra.

For Startups, Manufacturers & Traders

Interest from 8% - 24% p.a.

Tenure of 6 Months to 3 Years

Secured & Unsecured Options

Last Updated: 30-06-2026

Unlock Best Working Capital Loan Offers From Janmudra

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Quick Guide

What is a Working Capital Loan?

A working capital loan is short-term financing built to carry a business through its day-to-day costs — plugging the gap between money going out on inventory, salaries, rent and utilities, and money coming in from customer payments. The name 'operating capital loan' means the same thing: funding that keeps daily operations moving.

Picture a fabric trader who must buy raw material in bulk before the festive season while customer payments are still outstanding — a working capital loan bridges exactly that gap so operations never stall.

Unlike term loans meant for expansion or asset purchase, these loans run on a shorter repayment cycle and serve immediate, recurring business needs.

Features & Benefits of Working Capital Loan

Smooth Operations

Keeps payments on schedule and daily operations running even through slow revenue cycles.

Flexibility

The short-term structure suits immediate funding needs without locking you into a long commitment.

Maintains Cash Flow

Gives the business enough liquidity for everyday expenses without derailing operations or growth plans.

Bridging Cash Flow Gaps

Covers the stretch when customer payments run late but your own bills keep arriving.

Managing Seasonal Fluctuation

Lets you stock inventory ahead of peak-demand seasons without straining reserves.

Covering Unplanned Expenses

Absorbs sudden repairs, compliance costs or urgent vendor demands.

Funding Day-to-Day Operations

Pays salaries, rent and utility bills that cannot wait for the revenue cycle to turn.

— Eligibility —

Working Capital Loan Eligibility Criteria

Meeting these simple requirements is all it takes:

Age of Business

Most lenders require the business to be operational for at least 1-3 years

Annual Turnover

A minimum annual turnover threshold, which varies by lender

Credit Score

A healthy CIBIL/credit score (typically 650+) improves approval chances and interest rates

Business Plan

A clear business plan or cash flow statement may be required for larger loan amounts

MSME Relaxations

Registered MSMEs often get relaxed turnover and vintage norms under government-backed schemes such as CGTMSE

Documents Required for Working Capital Loan

— Documents —

Keep these basics ready for a fast online approval:

PAN card of the business and proprietor/partners/directors

Required

Proof of business registration (GST certificate, Udyam/MSME registration, or incorporation certificate)

Required

Bank statements for the last 6-12 months

Required

Income Tax Returns (ITR) for the last 2-3 years

Required

Audited financial statements (for larger loan amounts)

Required

Address proof of business and applicant

Required

KYC documents of the business owner(s)

Required

Compare Working Capital Loan Offers from Our Top Lenders

Rates, tenures and charges vary between lenders and states — compare through Janmudra without touching your credit score.

Banks	Rate Of Interest	Best For
HDFC Bank	10.50% onwards	Fast processing & wide branch network
ICICI Bank	10.50% onwards	Digital application & quick disbursal
Axis Bank	11.25% onwards	Customised SME working capital products
State Bank of India	9.85% onwards	Best for MSMEs & government-backed schemes

Quick & Easy Process

How to Apply for a Working Capital Loan?

Apply online in just a few simple steps

Step 1

Hit Apply Now, enter your mobile number and accept the Terms of Service and Privacy Policy.

Step 2

Clear a quick captcha to confirm you are human and move ahead.

Step 3

Pick Self-Employed Business — this loan is built for business owners, not salaried applicants — and proceed.

Step 4

Choose your firm type (Private Limited, Public Limited, Proprietorship/Individual, Partnership, LLP or HUF), then add your company name as per bank records and the director's/applicant's name.

Step 5

Enter the business's date of incorporation and your area pin code.

Step 6

Fill in last year's turnover, select the collateral type (Residential, Industrial, Commercial or Plot), state the loan amount you want and pick the nature of business (Manufacturer, Trader, Service Provider, Whole Seller or Others).

Step 7

Verify your identity with the OTP sent to your registered mobile number.

Step 8

Compare the matched lenders — rates, amounts, tenure and EMI per lakh — then click Instant Apply on your pick, or ask a financial advisor to reach out instead.

Loan Categories

The charges that apply across different parts of the loan are tabled below:

Particulars	Charges
Eligible People	Used to manage cash flow for small and medium businesses, including startups, manufacturers, and traders
Interest Rate	8% to 24% per annum depending on the lender, business credit profile and loan type (indicative, subject to change)
Processing Fee	Typically 1% to 3% of the sanctioned loan amount, depending on the lender
Collateral Requirement	Some lenders ask for property or inventory as security; unsecured options exist for businesses with strong credit and steady revenue
Repayment Tenure	Usually 6 months to 3 years, based on loan amount and business need
Interest Rate Type	Fixed or floating, as per the lender's policy and loan structure
Business Vintage	Most lenders prefer 1-3 years of operation; some new businesses may qualify depending on criteria

Working Capital Loan EMI Calculator

Loan Details

Loan Amount₹500000

₹1,000₹10,00,00,000

Interest Rate12%

1%50%

Tenure24months

Business Loan

Pan India Presence

Serving Working Capital Loan Across India

On the ground in every major city, with instant working capital loan support built around your growth.

New Delhi

Maharashtra

West Bengal

Tamil Nadu

Karnataka

Telangana

Odisha

Rajasthan

Bihar

Uttar Pradesh

Punjab

Madhya Pradesh

Join 50,000+ happy customers served across India

Frequently Asked Questions

Everything you need to know about Working Capital Loans from Janmudra.

It is a short-term loan that carries day-to-day costs like inventory, payroll and rent, bridging the space between outgoing expenses and incoming revenue — typically repaid over 6 months to 3 years.