MSME-Business Loans
Working Capital Loans / C.C Loans are designed to meet day-to-day business expenses, overheads, and working capital requirements of business entities. Bank Loans Hub provides tailor-made solutions to provide the required Working Capital Loan / C.C Limits for small, medium, and large enterprises.
Generally, these loans cover recurring expenses such as purchases of stock & inventory, production expenses, labor & wages, salaries, power & fuel, and rent & lease amounts. Working Capital / C.C Loans are not meant for capital assets or capex investments of the business.
Loan amount, collateral security coverage, rate of interest, fees, and charges depend on the profile of the borrower and the nature of the activity and may vary from bank to bank. Working capital requirements are assessed using methods like Turnover Method, Maximum Permissible Bank Finance (MPBF) System, Cash Budget System, and Net Owned Funds System.
To address these recurring operational expenses, banks and lenders generally offer Fund-based Limits and Non-Fund Based Limits as follows:
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