A growing business requires access to capital that can help it in seizing new opportunities. This is why working capital loans are a lifeline, especially for an Engineering, Procurement and Construction (EPC) company that is growing its project portfolio. It can be used for various purposes, most common of which are inventory purchase, payroll and other operational expenses. 

This is why we at SafEarth provide our EPC partners working capital loans in order to help accelerate their growth. 

Below are some of the basic terms and conditions to these loans :

Definition and Purpose of the Working Capital Loan

Working capital loans are specifically designed to cover short-term operational needs. Unlike other forms of financing that might focus on long-term investments or asset purchases, working capital loans are intended to help companies manage their day-to-day cash flow fluctuations. These loans are instrumental in ensuring a business can maintain its operations smoothly without facing cash shortages.

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Standard Terms and Conditions

  1. Loan Amount: The loan amount depends entirely on the business’s financial health, credit worthiness and the purpose for which the loan is sought. Additionally, companies often take these loans to finance a particular project construction, in which case, the most important factor is the value of the project.
  2. Collateral: Working capital loans on the SafEarth platform are collateral free and are primarily provided on the basis of the company’s projected cash flows over the next year.
  3. Interest Rates: Interest rates are determined on a case by case basis and depend on the riskiness of lending to a particular business. In particular they vary between 12-18% on a per annum basis. However, it is important to note that our borrowers are only charged on the utilized amount and not the entire sanctioned amount. 
  4. Repayment Terms: Interest repayments are charged on a monthly basis to make the process hassle free.
  5. Disbursal Period: Our average disbursal period is 3 days, once we have received the complete documentations from the Partner. 
  6. Fees and Penalties: Lenders may impose various fees, including origination fees, prepayment penalties, or late payment charges. All these fees are clearly laid out in the sanction letter.
  7. Financial Covenants: These are specific conditions that borrowers must meet throughout the loan period. These include maintaining a certain level of working capital, achieving a minimum cash flow, or adhering to specific financial ratios.
  8. Use of Funds: Some loans might have restrictions on how the borrowed money can be used. While some loans offer flexibility in expenditure, others might be earmarked for particular purposes like inventory purchases or equipment upgrades.


In our mission to help accelerate the growth of Solar in India, we at SafEarth are solving the various challenges that Solar EPCs face. Only if we can build a healthy ecosystem for EPC companies, can we see India achieve its solar ambitions. This is why SafEarth is determined to build the most borrower friendly working capital program for our partners. If you are an EPC company, looking to grow your business, then we invite you to join the SafEarth platform by clicking on the link SafEarth and make the most of the opportunities that we offer.


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