Financial institutions offer limits and term loans to self employed individuals for the purpose of working capital requirement of the entity. These loans/facilities are offered only for the business working capital requirement of the entity and funding is duly monitored by the financial institutions that the funds are offered only for the respective purpose for which the funds were procured. Various products offered under working capital loans includes :
Tenure of above products ranges from 30 days to 72 months. These are collateral based loans wherein the charge is created on stock and book debts of the entity as per the approval conditions and an additional collateral is taken by way of a Residential , Commercial or an Industrial property . Loan to value against each collateral varies between various financiers and depends upon the product norms, collateral type and usage and type of facility being availed.