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Capital

Cash Advance

Cash Advance

Check how you can get short-term loans when you need it and know the related terminology.

Razorpay Capital Cash Advance is a self-serve loan portal offering low-interest short term loans. Get the convenience of an

unsecured Line of Credit

to manage cash requirements prior to your customer payments.

The amount you withdraw from this Line of Credit is converted to a short-term loan. Typically, these loans are for a few days or few weeks with interests starting at 0.05%/day.

We also give you the flexibility to automatically repay the loan as a percentage of your settlements. You select the date by when you want to finish repaying the loan. The loan amount is divided into daily EMIs and is automatically deducted from your settlement balance.

Necessary Terminology

Before you know how to make withdrawals, there are a few terms that you should be familiar with. These are your credit details.

TermDescription
Total Withdrawable BalanceThe original amount made available to you when your line of credit was approved.
Available Withdrawable BalanceWhen your application is successful, you are given a line of credit. Available Withdrawable Balance is the maximum available balance that you can withdraw from your line of credit.
Available Withdrawable Balance = Total Withdrawable Balance - Amount Due .
Available Withdrawable AmountThis is the maximum amount you can withdraw in a single transaction. For example, let us say your available withdrawable balance is ₹50,000 and your available withdrawable amount is ₹10,000. This means you can withdraw a maximum of ₹10,000 in a single transaction.
Due RepaymentsThis is the amount that you have withdrawn and need to repay.
Due Repayments = Amount Withdrawn + Interest .

How it Works

  1. Apply for a Line of Credit

    .

  2. Withdraw money as per your needs

    .

  3. Repay money as per your convenience

    .

Example

Assume your Available Withdrawable Balance is ₹20,000 and your Available Withdrawable Amount is ₹10,000.

Available Withdrawable BalanceDue Repayments
Opening Balance₹20,000₹0
Withdraw ₹5,000₹15,000₹5,025 (Amount Withdrawn + Interest)
Withdraw ₹10,000₹5,000₹15,075 (Pending Balance + Amount Withdrawn + Interest)
Repay ₹3,000₹8,000₹12,075 (Pending Balance - Amount Repaid)
Withdraw ₹8,000₹0₹20,115 (Pending Balance + Amount Withdrawn + Interest)
Repay ₹12,500₹12,500₹7615 (Pending Balance - Amount Repaid)

1. Apply for a Line of Credit

The first step is to apply for a line of credit.

Handy Tips

This is a one time process.

  1. Log in to the

    Razorpay Dashboard

    and navigate to Cash Advance on your Dashboard.

  2. Fill in a few details such as Name, Contact Number and how much credit you would like, and submit your application.

    Start Application for Cash Advance

  3. We review and approve your application, provided it meets the criteria.

  4. Once approved, you are given a line of credit from which you can make withdrawals as and when you need and for an amount of your choice.

    Withdraw Cash

You are now ready to

make withdrawals

. Ensure you are aware of the

credit details before you withdraw

.

2. Make Withdrawals

Once your line of credit is approved, you can make withdrawals as per your business needs. To withdraw money:

  1. Log in to the

    Razorpay Dashboard

    and navigate to Cash Advance on your Dashboard.

  2. In the Withdraw Amount section:

    • Enter the amount you want to withdraw.
    • Enter a date by when you want to finish repaying the loan. Refer to the

      Make Repayments

      section for more details.
    Withdrawal Amount

  3. Click Withdraw Now. Your request is successfully placed and is updated as per the

    request states

    .

    Request Withdrawal

Withdrawal Request Status

StatusDescription
RequestedYou have placed a withdrawal request on the Dashboard. The money will soon be credited to your account.
DisbursedYour request was approved. The money has been disbursed and will soon be credited to your account.
Partially RepaidYou have partially repaid the amount you withdrew. For example, you withdrew ₹10,000 and repaid ₹6,000.
RepaidYou have fully repaid the amount you withdrew.
FailedYour request was approved, but the transfer failed due to some error at the processing bank.
In such scenarios, you have to make a withdrawal again.
Any amount deducted from your Available Withdrawable Balance will be returned.
RejectedYour request was rejected by the bank. This could be because you exceeded your available withdrawable balance.

3. Make Repayments

There are two types of repayments:

Daily Deductions

When you make a withdrawal, you select the date on which you want to finish making repayments. Based on the selected date, the outstanding amount (principal + interest) is automatically deducted from the settlement amount on a daily basis. There is nothing you need to do.

Example

Assume you withdrew ₹10,000 on July 02 and selected July 12 as the repayment date. The interest on this loan for 10 days is ₹20. The calculation then is as follows:

  • Principle + total Interest for 10 days = ₹10,000 + ₹20
  • Tenure = 10 Days
  • Daily EMI: (Principle + Interest)/Tenure = 10,020/10 = ₹1,002/day

₹1,002 is collected everyday from your settlement balance starting on July 03 till July 12.

Manual Repayments

Manual repayments is any amount you choose to pay in addition to the daily deductions from your settlement amount. There is no limit on the number of repayments or the frequency at which you make these repayments.

To make a manual repayment:

  1. Log in to the

    Razorpay Dashboard

    and navigate to Cash Advance.

  2. Click Repay.

    Repay the borrowed amount by clicking 'repay'.

  3. The support ticket portal opens with all options selected and details pre-filled. Click Submit.

    Submit repayment support ticket with pre-filled information.

  4. A repayment request is successfully raised. We will get in touch with you for more details.

    Repayment requested panel depicting a request summary.

FAQs

1. What is Cash Advance?

Razorpay Capital Cash Advance is a self-serve short-term loan portal that gives you an unsecured line of credit. You can withdraw an amount of your choice from this line of credit as per your needs and is converted to a short-term loan.

2. How do I apply for a Line of Credit?

To apply for a

line of credit

:

  1. Log in to your

    Razorpay Dashboard

    .
  2. Navigate to Cash Advance in the left menu.
  3. Fill in a few details and submit your application.

Know more about

Line of Credits

.

3. What is the interest on the Cash Advance loans?

The interest rates start at 0.05% per day.

4. How do I make withdrawals?

You can make withdrawals from the

Razorpay Dashboard

at your convenience. Know more about

Withdrawals

.

5. Can I withdraw my entire line of credit in a single transaction?

No. There is a limit to how much you can withdraw in a single withdrawal. This is defined by the Available Withdrawable Amount parameter. Refer to the

Credit Details - Necessary Terminology

section for more details.

6. Is there a limit to how much I can withdraw in a single withdrawal?

Yes. There is a limit to how much you can withdraw in a single withdrawal. This is defined by the Available Withdrawable Amount parameter. Refer to the

Credit Details - Necessary Terminology

section for more details.

7. How often can I make withdrawals?

You can make as many withdrawals as you wish, provided:

  • You have sufficient balance.
  • You withdraw less than your Available Withdrawable Amount.

8. How do I repayments the money I withdrew?

There are two types of repayments.

  • Daily deductions from your settlement amount.
  • Manual repayments made by you. This is in addition to the daily deductions from your settlement amount. Refer to the

    Make Repayments

    section for more details.

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