Running your own business can be a challenging task at times, but otherwise, it can be truly joyous. It is a special kind of happiness, seeing all your hard work paying off when your business achieves its goals. Imagine the success you have always dreamed of when you’re able to hold your manufactured product (or service) in your hand. 

However, numerous people face trouble when they launch their businesses. They may require a working capital loan to keep their business stay afloat. 

What is a working capital loan? 

Before launching your business, you may have already invested in some fixed assets like machines, equipment, factory, or other installations. However, there is also a need for some liquid money to manage the day-to-day requirements of your business. These costs may include paying your employees’ salary, rent, operational causes, or sustaining your business through a dry spell. 

Eligibility for a working capital loan

Here are some requirements for such a business loan – these are generally the requirements laid down but may vary across different lending institutions:

• You must be over 25 years of age but under 65 years. 
• The tax returns of your business should have already been filed for that time frame. 
• The nature of your business should be something that needs constant cash flow to meet its working capital. 
• The exact amount may vary from bank to NBFC (non-banking financial company) to NBFC, but you may not get a loan if your annual turnover was higher than a certain amount. 
• Your business should have been up and running for a minimum of 2-3 years. 

While this is not a requirement, having a good CIBIL score goes a long way in securing a loan for your business. 

Must Read: How To Make Working Capital Work For Your Business?