Working Capital - Turnover Greater Than ₹ 7.5 Crores

What’s in store for you

Business Loans for Growth

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Benefits & Features

Financing options

Avail a range of financing services for your business:

  • Cash Credit/Overdraft: Get flexible access to funds and help your business manage short-term cash flow needs efficiently.
  • Letter of Credit: Reduce payment risk in international transactions.
  • Bank Guarantee: Fulfill business requirements with bank guarantees.
  • Buyers Credit: Finance purchases and improve cash flow while obtaining necessary goods or services.
  • Short Term Finance: Cover immediate expenses to ensure smooth operations without long-term commitment.
  • Packing Credit: Get necessary funds before shipment to facilitate timely production and delivery of goods.
  • Post Shipment Limits: Manage cash flow effectively after shipping and improve working capital.
  • Bill Discounting: Opt for customised bill discounting solutions for short term financing. Benefit from nationwide network of branches and correspondent banks.
  • Structured Cash Flow Financing: Enjoy tailored financing solutions that align with specific cash flow patterns and business needs.
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Loan Perks

Post shipment credit

Fund your export sales receivables through a range of options:

  • Negotiations/ payments/ acceptance of export documents under letters of credit

  • Purchase/ discount of export documents under confirmed orders/ export contracts, etc

  • Advances against export bills sent on a collection basis; exports sent on a consignment basis; undrawn balance on exports and approved deemed exports

Services for exporters

  • Get packing credit and post-shipment credit

  • Choose between INR and foreign currencies

  • Opt for advances against exports

Repayment 

  • Customise your repayment schedule to suit your cash flow needs. 

Trade finance desks

  • Get assistance from a dedicated relationship manager for tailor-made solutions.

Loan Perks

Fees & Charges

Processing Fees

Up to 1% (plus taxes) of the facility amount or ₹7,500/- (plus taxes) whichever is higher.

₹5,000/- (plus taxes) will be collected upfront as non-refundable administrative cost towards the legal and valuation expenses incurred prior loan sanction. For Shopkeeper Loan (unsecured): Up to 2% (plus taxes) of the facility amount. No Processing Fee & Renewal Fee will be charged for the cases worth CAM value up to ₹5 lakh.

Renewal Fees

Up to 1% (plus taxes) of facility amount.

Additional Interest

Charged @ 18.00% p.a. for overdue / delay / default of any monies payable

Service Tax & other Government taxes

Service Tax and other Government taxes, levies etc. applicable as per prevailing rate will be charged over and above the Fees and Charges

Please Note:

  • Loan at the sole discretion of HDFC Bank Ltd.

  • Floating rates are linked to Repo as declared by RBI from time to time. Such loans/ facilities are reset at 3-month frequency.

  • ** All Guaranteed Emergency Credit Line (GECL) Products are linked to HB_EBLR rate.

VIEW DETAILED LIST OF FEES AND CHARGES

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Most Important Term & Condition

*The Most Important Terms and Conditions for each of our banking offerings features all the specific terms and conditions that govern their use. You must go through it thoroughly to fully understand the terms and conditions applicable to any banking product you choose.

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Wondering if you are eligible?

Eligible Entities

  • Sole Proprietorship, HUF, partnership firm, private limited or public limited company.

Other Criteria

  • The business must have a minimum of three years of experience in the same industry and location.
  • The business should have a minimum of six months of asset/liability relationship with HDFC Bank.
  • A sanctioned credit facility with a bank is required for exposures exceeding ₹1 crore.
  • The business must not be listed on the RBI Defaulter's List, CIBIL database, or any negative database maintained by HDFC Bank.
  • The business should demonstrate satisfactory conduct with its existing banker.
  • Group entities must not be listed on the RBI, CIBIL, or any internal database of the bank.
  • The business must show positive Tangible Net Worth (TNW) and Profit After Tax (PAT) for the past two years.

Annual turnover

  • Between ₹7.5 crore and ₹200 crore
Turnover greater than Rs. 7.5 Cr

Documents required to apply for a Working Capital Loan

  • The documents required to apply for a Working Capital Loan are as follows:
    1. Completed application form with annexure
    2. Last two years’ audited financial statements with auditor and director’s report
      (Latest provisional results signed by the directors / partners / proprietor for previous financial year if audited statements are not available, up to seven months of year ending)
    3. Financial projections for the total tenure of term loan, including calculation of DSCR (if any)
    4. Last two years’ income tax returns and sales tax (or VAT) returns, including latest completed financial year
    5. Copy of the sanction letter of the existing bank (or bank statement reflecting the Limit or CA certificate confirming the existing borrowings)
    6. Bank statement of all bank accounts for last six months and any past repayment track records (loan statements) of the establishment and its promoters
    7. Shareholding pattern, memorandum of association, articles of association (for limited or private limited company)
    8. Partnership deed (for partnership firm)
    9. External rating (by CRISIL, ICRA or CARE)
    10. Copy of property documents of the properties to be mortgaged
    11. Copy of latest telephone bills/ electricity bills for address confirmation (for merchant businesses that are non-HDFC Bank customers)
    12. Certificate under Shop and Establishment Act or Government Registration Document (for merchant businesses that are non-HDFC Bank customers)
    13. All documents to be self-attested by applicant.

Frequently Asked Questions

To apply for Working Capital Finance from HDFC Bank, the required documents typically include:

  1. Application Form: Completed and signed by the applicant.
  2. KYC Documents: Identity proof, address proof, PAN card of the applicant and guarantors (if any).
  3. Business Proof: Registration certificate, business incorporation details, GST registration certificate, partnership deed (if applicable).
  4. Financial Documents: Audited financial statements including balance sheet, profit & loss statement for the last 2 years.
  5. Bank Statements: Latest 6 months' bank statements.
  6. Income Tax Returns: Last 2 years' IT returns of the business and directors/partners.
  7. Other Documents: Projected financials for the upcoming year, details of existing facilities, and any additional documents as required by HDFC Bank.

The Working Capital Loan amount is determined based on a company's current assets and liabilities, cash flow, creditworthiness, and projected financial needs. Lenders evaluate these factors to ensure the loan covers day-to-day operational expenses without exceeding the business's ability to repay.

High-value Working Capital Finance from HDFC Bank can be either secured or unsecured. In the case of the former, the lender may ask the borrower to provide collateral. 

The approval process depends on the loan amount required and can take anywhere from 2 weeks to 2 months. 

If a business struggles to repay a high turnover working capital solution, it might face penalties. The business's credit rating may also drop, making future borrowing harder.