Working Capital Loan :
Working Capital Limits in the form of Cash Credit Facility (CC), Overdraft Facility (OD) or Drop-Line Overdraft Facility (DOD) are revolving facilities offered by banks to borrowers for meeting day-to-day business operations. Once a limit is sanctioned, the borrower can draw the loan amount within the specified limit at any time during the year and pay interest only on the funds used. Most banks or financial institutions require 5 years of business vintage to avail such facility.
Documents Required:
For any loan application, a minimum set of documents are generally required by any financial institution in order to process the application. The list of documents required are as follow:
- Identity Proof: Identity proof can include PAN card, Aadhar card, Voter ID card, Passport, etc.
- Address Proof: Address proof can include Aadhar card, Passport, Utility Bills, etc.
- Income Proof: Income proof can include ITR documents, Form 16, Salary slips, Form 26AS, and Bank statements.
- Business Existence Proof: This is usually required in the case of a self-employed borrower and can include a GST registration certificate, trade license, partnership deed, etc. In the case of a self-employed professional like CA or Doctor, a certificate of practice and degree is also required.
- Loan Details: This includes sanction letter or repayment schedule of any existing running loans along with its repayment bank account statement.
- Property Documents: This includes a complete chain of property documents like sale deed, conveyance deed, allotment letter, sale-purchase agreement, possession letter, etc., and certificate of approved sanctioned maps and plans for construction.