Working Capital Limit

Working Capital Finance / Over Draft / Cash Credit Facility is given by banks and financial instituitions to fill up the working capital gap of businessmen to smoothen their business. This can be secured against any property or unsecured also.

Features

Basis Features of such type of Finance

  • This may be secured/ unsecured finance.
  • Interest rates are flexible being either Fixed, Floating or a combination of fixed and floating.
  • Interest rates depend on client's profile, financials and the property he is offering as collateral.
  • Repayments are made in EMIs (Equated Monthly Instalments).
  • Pre-payments are allowed, to reduce liability.
  • They are short-term in nature; tenors usually vary between 3 to 5 years.
  • Non-interest charges include processing fees, pre-payment charges, inspection fees, documentation fees etc.
  • Co-applicants/joint-applicants are allowed.

Every lender assesses a customer differently but, by and large, the basic criteria a borrower should satisfy to be eligible for a loan are outlined below:

Eligibility

  • Employment: Ability to service interest charges, as reflected in the borrower’s earning capacity, is important. Borrowers should be salaried employees or self-employed persons (professional/non-professional) OR be in employment/business for at least 3 years of which current employment should account for at least 1 year.
  • Income: A minimum income varying between Rs.5 - 7 lakhs would be required. This depends on the nature of employment i.e. salaried or self-employed.
  • Credit Rating: A good credit score is required (a score of 750-900 from CIBIL is considered good). Besides this, a healthy financial background is vital for approval and to determine the interest rate and loan amount.
  • Current Obligation:The payment track record of any Loan which had been taken by the customer in the past, even though currently closed and EMI of any existing loan is may be considered while calculating loan ligibility.
  • Age:The minimum age at the time of application should be 21 years. Repayments have to be completed before the age of 60 or 65.
  • Security: The Collateral offered by the borrower like type of property- commercial/residential or industrial and usage pattern of same.

Get In Touch

We would love to hear from you, if you have any questions, do not hesitate to contact us

Finance Market

805, Akshat Complex, Besides Pakwan Restaurant, Bodakdev, S.G.Highway,

Ahmedabad 380054

Find Us Here

Phone : 079 40022171

Mobile : Kamal Thakkar- 9825642171

Reema Kapoor- 7600011579