Working Capital Loan Credit Policy & Eligibility Rules
Working capital limits, assessment norms and documentation.
How lenders evaluate applications
Working capital loans fund day-to-day operations. Assessment is based on operating cycle, turnover and existing limits.
Banks use MPBF or turnover-based methods; NBFCs may use different models.
Eligibility at a glance
| Parameter | Typical Requirement |
|---|---|
| Turnover | Minimum as per lender |
| Operating cycle | Assessment of receivables, inventory, payables |
| Existing limits | Existing WC and term debt considered |
| Documentation | Financials, stock statements, bank statements |
Policy rules
Common working capital parameters.
Assessment
MPBF or turnover-based; peak requirement and seasonality.
Eligibility
Turnover, profitability and existing exposure.
Security
Current assets, collateral as per policy.
Example eligibility scenario
Sample borrower
Example inputs
- Annual turnover: ₹2 Cr
- Peak requirement: ₹40L
- Existing WC: ₹25L
Result
Assessment depends on lender method
Lender will compute eligible limit from turnover and operating cycle.
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