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Working Capital Loan

   Also found in: Acronyms 0.01 sec.
Working Capital Loan
A short-term loan to finance day-to-day operations of a business. It is normally a loan for a comparably small amount, and is not used for long-term investment purposes. Rather, it funds immediate needs, such as payroll and accounts payable.


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Through this partnership, SBI can grant trade finance and short-term working capital loans including letters of credit and bank guarantees, in addition to term loans, project finance and as well as syndication of credit requirements at highly competitive rates to EDC members," said Vidyasagar, chief executive officer, State Bank of India.
The working capital loan has piled up to Rs 16,000 crore.
The bank offers a variety of financing tools: Working Capital Loan Guarantees: These cover 90 percent of the principal and interest on working capital loans for pre-export costs.
 
 
 
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