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Working Capital Loan

Hero FinCorp offers affordable and quick working capital loans that can help businesses to meet emergencies or short term needs easily or run daily operations smoothly.

Eligibility & Documentation


  • Public, Private, Partnership, Trust, Society & Individual Doctors
  • 5 years of experience & min. 3 years in current business
  • Business profitability as per industry norms
  • Satisfactory credit & financial history


  • Last 3 years audited financial statements and projections
  • Profiles and KYC of Directors/ Partners/ Proprietor
  • Company constitution documents and registration certificates


Working capital amount up to INR 5 Crores for meeting daily and short term expenses.

Minimum documentation and quick disbursal of working capital term or demand loan.

High loan to value ratio of up to 80%.

Working capital Loan based on assessment of specific business requirements.



  • Daily operations and short term activities like inventory purchase, accounts payable and wages can be met efficiently and smoothly with it. You will have access to liquid asset and won’t have to depend only on order fulfillments to start a new project.

  • High loan to value ratio will ensure that you get a sufficient loan against the collateral you provide, and get to expand your business the way you want.

  • Flexible tenure options will let you pay back in a few years or few months as per your convenience, depending on whether you need short term or medium term liquidity.



  • Flexibility is the biggest advantage of this loan as it can be taken against bills receivable, equipment, lease rentals or real estate.

  • Business autonomy is guaranteed as there is no restriction on how you can use the loan money, whether you want to buy new machinery or undertake marketing activities for your brand.

  • Quick processing makes this loan attractive, as minimal paperwork is involved. Your application will be approved quickly, provided that the necessary requirements are met.



  • Inventory cost is a component that refers to stocking costs, and it covers capital, depreciation, insurance, taxes, warehousing, shrinkage and obsolescence.

  • Accounts receivable is the revenue that is expected to be received at a certain future date. This also reveals the collections cycle of the business.

  • Outstanding dues or accounts payable are payments that the business has to make to suppliers, vendors and distributors. To ensure smooth cash management, the collections cycle is shorter than payment cycle.



    While tenure is of maximum 3 years, this SME loan interest rate will vary from 11% to 14%. Loan to value ratio of 75% to 80%, maximum loan amount of Rs. 5 crores and application processing time of only 7 to 10 days are other benefits. Documents required:

  • PAN card and address proof

  • Last 6 months’ bank statement

  • Last 2 year's IT returns and last 3 year's audited financials

  • Next 2 year's projections and the most recent shareholding pattern



  • You first need to submit all necessary documents along with KYC and application form

  • Hero FinCorp will then gauge your eligibility, examine financials and verify credit score

  • If all requirements are met, disbursement of the loan will be approved

  • The loan will be disbursed after checking legal and valuation reports and follow-ups will be carried out too

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    Q1. What is a working capital loan?

    A working capital loan can provide short term liquidity to a business to meet emergencies, short term losses and carry out daily operations with ease. This loan is not meant for long-term investment.

    Q2. Can moratorium period be allowed under this scheme?

    Yes, moratorium period is allowed under this scheme, though the maximum period should not exceed 96 months.

    Q3. What is Loan-to-Value or LTV Ratio?

    LTV or Loan to Value ratio, is ratio of the loan amount to the realizable value of the underlying asset or security.

    Q4. Is there any pre-payment penalty?

    Yes. A small percentage of limit will be charged as pre-payment penalty.

    Q5. What is ECS?

    ECS stands for Electronic Clearance Service, and it is used to electronically transfer money between bank accounts, and is commonly used for making monthly EMI payments.

    Q6. What is the usual repayment method for these loans?

    The usual repayment methods include PDC, ECS, and more.

    Q7. Are balance transfer or loan BT cases considered?

    Yes. Loans can be availed through transferring an existing loan from other banks, NBFCs or financial institutions.

    Q8. What is the range of tenor available with these loans?

    You can avail this loan for a period starting from 12 to 36 months or 1 to 3 years.

    Q9. Are there any Foreclosure and Part/ Pre-payment charges?

    We offer pre and part payment facility at a very nominal charges. The amount charged may vary by sub-product and/ or location.

    Q10. How to get working capital loans for a small business?

    Hero FinCorp provides working capital loans to address short term financing requirements of SMEs. These loans can help you tide over emergencies, maintain healthy cash flow, recover from short term losses and fund day-to-day operations.

    Q11. What are the documents required to avail a working capital loan?

    As documents, you need to submit last 3 years’ audited financials, last 2 years’ tax returns, projections for next 2 years, last 6 months’ bank statement, latest shareholding pattern, PAN card, and address proof.

    Q12. How should you prepare to get a working capital loan quickly?

    The loan application process can be a lot simpler if one keeps the following in mind: 1. Update your financial records, 2. Know the value of your assets, and 3. Keep your banking/ financial statements handy.

    Q13. How do I reach out to Hero FinCorp for a loan?

    Fill in our Apply Now form on our website followed which we will get in touch with you or you can also call us on 1800-103-5271 or write to us at

    Q14. How much loan can I avail? How is the amount decided?

    The maximum eligible loan amount is decided based on your requirement, credit assessment, industry outlook, past performance and expected future cash flows.

    Q15. What can be accepted as security/ collateral?

    A wide range of securities are accepted. The includes properties such as land & real estate; equipment such as plant & machinery; Fixed Deposits, Deposit Certificates, Kisan Vikas Patra, National Savings Certificates, securities issued by Central and State Governments, gold and other cash equivalents; life insurance policies; and others. Please note the applicability of the above depends upon the overall assessment of the borrower.

    Q16. How long does it take to get the loan?

    It takes 7-10 working days to process the loan provided everything is in order.

    Q17. Typically, how is working capital finance structured at Hero FinCorp?

    At Hero FinCorp, working capital loans are tailored to suit the requirements of our clients, as we offer various instruments individually or in combination with other products to best suit customer needs.

    Q18. For what tenors does Hero FinCorp extend working capital finance?

    Depending upon various facilities working capital finance is extended for tenors up to one year. Ad hoc requirements are also considered.

    Q19. Who should I contact in case of any problem or if I have a query?

    We have dedicated Relationship Managers for all corporate clients. You can get in touch with them if you have any queries about our products, services or in case of any issues regarding our loan application or approval process. Also, you can use the customer care section of this website to raise any query.

    Q20. Is there any impact on my credit score if I foreclose my loan?

    No, foreclosure of your loan will have no impact on your credit score. Once the loan is foreclosed the same will be reported to credit rating agency as closed.

    Hero FinCorp’s working capital loans are ideal for tiding over sudden emergencies, short term losses and funding daily operations so that your business runs and grows smoothly. You can benefit from comfortable tenures, attractive business loans interest rates, high loan-to-value or LTV ratio, fast approvals, proactive customer service, easy documentation, and transparent service. As far as eligibility for working capital loans is concerned, your business must be public, private, proprietorship or you must be self-employed. You should have been in your present business for at least 3 years and have a satisfactory credit score. To avail this loan, your business should also be profitable as per industry standards. The documents you need to submit include KYC and profiles of partners and directors, registration certificates as well as company constitution papers. You will also need to provide last 6 months’ bank statement, last 3 years’ audited financials, last 2 years’ tax returns and projections, latest shareholding pattern, address proof and PAN card. The amount of working capital loan you can receive and the interest rates depend on the assessment of your company and credit, and your need. As security for working capital loans, you can provide land, building, equipment, deposit certificates, fixed deposits, NSC, gold, life insurance policies and so on.

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