Fullerton India Credit Co. Ltd. is Now SMFG India Credit Co. Ltd.

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A working capital loan is a type of funding that takes care of a company’s expenses for everyday operations. The company may use the loan amount to provide for short-term operational requirements rather than long-term investments or assets. Usually, individuals and enterprises apply for a working capital loan India to cover costs such as payment for staff, upgrade technology, leverage opportunities, procure raw material, pay an advance to suppliers, debt payment, purchase inventory, maintain cash flow, pay utility bills, rental payment, etc.

At SMFG India Credit, you can apply for business capital loans online. Through a committed team, we do our best to ensure a pleasant experience throughout your borrowing journey.

What Is a Working Capital Loan?

A working capital loan is typically a short-term loan taken out to meet a business’s operating expenses like employee salaries, office rent, or inventory. It is designed to act as a buffer during periods of slow business activity, enabling business owners to focus on their long-term goals.

Working capital loans are especially beneficial for businesses that deal with seasonal fluctuations or cyclical sales. They may be secured or unsecured, depending upon the loan amount and the overall financial health of your business.

Features and Benefits of Working Capital Loan

Listed below are the key benefits and features of taking a working capital loan in India:

  • At SMFG India Credit, we offer competitive interest rates on working capital loans. The applicable rate depends on several factors such as your net income, collateral, location, business stability, existing monthly obligations, and more.
  • We offer collateral-free business loans up to INR 75 Lakhs*.
  • Flexible repayment tenure ranging between 12 to 36 months for working capital loan India
  • The processing fee is up to 6.5%* of the loan amount

What are the Eligibility Criteria for Business Capital Loans?

Here are SMFG India Credit’s working capital loan eligibility norms for enterprises and individuals:

  • Applicants eligible are proprietors, private limited companies, self-employed individuals, and partnerships firms working in services, manufacturing, or trading
  • The enterprise must show a record of profits for the last two years
  • Companies must have a turnover of at least Rs. 10 lakhs
  • The enterprise must have a minimum annual income (ITR) of Rs. 2 lakhs every year.
  • Individuals can apply for small business loans if they have an experience of at least 2 years in the current business and total business experience of at least 5 years.

We also offer collateral-free loans up to INR 75 Lakhs*. To know the details, please click here. For amounts greater than INR 75 Lakhs*, we offer business loans secured against property. Please visit our Loan against Property for SME page for more details.

Please contact us to know more.

Documents Required for Working Capital Loan

Below-given is a list of required documents for the SMFG India Credit unsecured business loan application:

  • PAN Card and a copy of valid identity proof is mandatory for an applicant who is an individual, firm, or company.
  • Accepted address proofs are Ration card, voter ID card, driving license, or Passport.
  • Income documents include the latest Income Tax Return with computation of income, profit and loss account and balance sheet of the last 2 years. These documents must carry requisite certification from a Chartered Accountant. Alternatively, any other valid proof of income will also suffice.
  • Bank statements of the last 6 months.
  • Accepted proof of business continuation include Sales Tax Certificate, ITR, Establishment or Trade license.
  • A few other proofs include a certified true copy of Memorandum and Articles of Association certified by the Director of the company and the Board resolution, a certified copy of the Partnership Deed or Sole Proprietor Declaration, etc.

How are Working Capital Loans Used?

There are several ways working capital loans can be used to fund a business’s short-term expenses:

  • Cover day-to-day expenses such as payroll, rent, and utilities.
  • Get additional funds for inventory to meet the demand for the company’s product.
  • Take advantage of any limited period supplier discounts to make larger purchases.
  • Take care of unexpected expenses such as machinery breakdowns or repairs.
  • Manage any cash flow gaps that may result from delayed payments from customers.
  • Fund business expansion efforts such as opening a new location or launching a new product.

Working Capital Loan Fees & Interest Rates

SMFG India Credit offers customised working capital loan interest rates to suit every profile and business need. Here are the typical fees or charges you can expect:

Working Capital Loan Interest Rate

Minimal and competitive (depending upon several factors such as net income, business stability, location, collateral, existing monthly obligations, etc.)

Loan Amount

Up to INR 75 lakhs*

Loan Tenure

Up to 48 months*

Processing Fee

Up to 6.5% of the loan amount

Late Payment Charges (Applicable for Payment Default)

2% plus GST charged monthly (24% per annum) on the overdue amount calculated on day-to-day basis.

Cheque/ECS/ Dishonoured Charges - Per Dishonour of the Cheque Per Presentation

INR 300

Loan Cancellation Charges (Loan Cancelled Before First EMI)

INR 1000

Customer Type

Proprietor / LLP / Pvt Ltd. / Partnership / Public Ltd.

Page also available inहिन्दी - Hindi

* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.


How to apply for a working capital loan?

You can apply for working capital loans on the official website of SMFG India Credit. Alternately, you can drop by at our nearest branch office to understand the loan schemes and apply for a suitable financial product.

What is the advantage of taking a working capital loan?

The benefits of applying for a working capital loan India are:

  • No risk to business assets as the funding is free of collateral
  • Helps in time of financial emergencies and acts as a cash cushion
  • Easy repayments of an unsecured small business loan through EMIs

What is the age limit for individual applicants?

An individual applicant must be a minimum of 22 years at the time of loan application and less than 65 years at the time of the maturity of a working capital loan.

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