Features you need and deserve
Multiple Options
You can choose between the following two financing options:
We have lots for you in store
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Non-fund based options
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Fund-based options
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Collateral
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Easy Accessibility
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Interest rates
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Processing
Frequently Asked Questions
If a contractor misses a payment on their Working Capital Loan, they may face penalties such as late fees, higher interest rates, and a negative impact on their credit score. Persistent non-payment can lead to loan default, legal actions, and potential loss of collateral or assets pledged to secure the loan.
Yes, if you choose to repay the loan before the stipulated tenure, you may be eligible to pay a nominal early closure fee. The fee could be fixed or variable and depends on when during the ongoing tenure you decide to preclose the loan.
Working Capital For Contractors refers to the loan or funding facility by HDFC Bank, which allows contractors to cover their daily operational expenses such as making payroll, buying raw materials, managing equipment rentals and overhead costs, among other things.
HDFC Bank offers high value Working Capital Loans, ranging from a few thousands to several lakhs, based on the applicant’s requirements and the value of the equipment/assets pledged as security.
Yes, MSME Loans For Contractors can be utilised to cover subcontractor payments, labour costs, and other operational expenses associated with the construction and contracting businesses.
Yes, you are required to pledge your commercial or construction equipment as Contractor Loan collateral.
More About Working Capital Loans
- Features of Working Capital Finance for Contractors
- Benefits of Working Capital Contractor Finance
- Cash Flow Management
- Ensures continuous liquidity for day-to-day expenses like payroll, subcontractor payments, and material purchases.
- Operational Flexibility
- Enables contractors to seize new opportunities, manage multiple projects concurrently, and navigate seasonal fluctuations without financial strain.
- Timely Project Execution
- Facilitates prompt payment to suppliers and subcontractors, ensuring smooth project progression and maintaining positive business relationships.
- Equipment and Material Purchases
- Supports timely acquisition of necessary equipment, tools, and materials essential for project completion.
- Risk Management
- Provides a financial buffer for unexpected costs or delays, mitigating project risks and enhancing project delivery reliability.
- How to apply for a Working Capital loan for Independent Contractors?
- To apply for this service, visit HDFC Bank's official website and take the following steps: SME-> BORROW-> For Business Expansion-> Working Capital Loan-> Working Capital For Contractors.