Axis Bank Business Loan
Axis Bank Business Loan Details Updated | |
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Loan Amount | Rs. 50,000 to Rs. 50 lakhs |
Tenure | 1 year to 7 years |
Interest Rate | 11.05% to 20.00% per annum |
Processing Fee | Up to 2% of the principal loan amount |
Foreclosure Charges | Up to 4% of the prepaid amount |
Types of Business Loans | Unsecured loan, secured loan, Overdraft facility, Invoice financing, term loan, Letter of Credit, corporate loan, SME loan, Mudra loan, and more |
Axis Bank Business Loan is both secured and unsecured in nature. For unsecured loans, you do not have to submit collateral/security to the bank. For secured loans, you need to submit the acceptable form of security to avail funds. The maximum loan amount to borrow is up to Rs. 20 crores (Rs. 50 lakhs for unsecured business loan). The bank offers competitive interest rate, flexible repayment tenure, and additional assistance on the loan account.
In the below-given pointers, we will discuss about Axis Bank Business Loan features, eligibility criteria, documents required, interest rates, types of business loan schemes, related services, fees and charges, and the FAQs.
Features of Axis Bank Business Loan
Below-mentioned are some of the Axis Bank business loan features.
- Loan amount ranges from Rs. 50 thousand to Rs. 15 lakhs/50 lakhs only.
- Added facilities guaranteed are speedy loan sanctioning and minimum paperwork.
- Amount for repayment is determined by the credit period, money lent and rate of interest.
- The percentage of interest charged depends on the bank’s discretion after judging the borrower’s credit history, income, business turnover and profit etc.
Eligibility Criteria for Business Loan Axis Bank
Below-given are the eligible applicants for Axis Bank Business Loan:
- Individual who are at least 21 years of age (with business registration)
- Private Limited Companies
- Partnership Firms
- Unlisted Public Limited Companies
- Proprietorship Firms
- Limited Liability Partnership
- Trust and Societies (for educational institutes/hospitals)
- Business vintage should be minimum 3 years
- The firm should meet the turnover and other criteria as per that under relevant loan scheme
Documents Required to Apply for Axis Bank Business Loan
Here is the list of documents for business loan Axis Bank:
- Relevant identity proof and address proof (Ration Card, Voter ID, Aadhaar Card, Driving Licence, Utility Bill, Residence ownership proof, etc)
- Financial documents to prove the financials of the business of the last 1 year or more (Profit and Loss statement, bank statement, etc)
- PAN Card/Form 60
- Duly filled and signed application form
- Business proof papers such as registration certificate, GST certificate, proof of business continuation, or others.
Axis Bank Business Loan Interest Rates
The business loan interest rates by Axis Bank are different for different loans schemes.
- The interest rate starts from 11.05% and goes up to 20%.
- For floating rate loans linked to the Repo Rate, reset period is after every 3 months.
- For loans with fixed rates, the starting rate of interest is 14.25%
Types of Axis Bank Business Loans and Services
Below-given are different types of business loans and related services by the Axis Bank:
- Working Capital Finance
- Term Loans
- Unsecured Business Loan
- Office stability must be minimum 24 months.
- The residential or office property in question should be owned.
- If the property is rented, then the residence stability must be minimum 12 months. This is non-applicable if one shifts to owned house.
- Minimum income for individuals as per the ITR of the last 2 years should be Rs. 2.5 lakhs
- Minimum cash profit for the last 2 years for non-individuals should be at least Rs. 3 lakhs
- The full prepayment or foreclosure is allowed after payment of the 1st EMI. The charges are applicable on the outstanding principal at the time of foreclosure + applicable GST:
- Up to 24 months: 4%
- 25 months to 36 months: 3%
- More than 36 months: 3%
- Secured Term Loan
- Loan amount is between Rs. 5 lakhs and Rs. 5 crores.
- Tenure is between 12 months and 15 years.
- Acceptable collateral are fixed deposit, industrial/commercial/residential property, and more.
- The residential or office property should be owned
- If the property is rented, then the residence stability must be minimum 12 months. This is not applicable if shifted to an owned house
- The minimum office stability must be 24 months
- Minimum income for individuals should be Rs. 2.5 lakhs according to the ITR of the last 2 years
- Minimum cash profit for non-individuals should be Rs. 3 lakhs for the last 2 years
- Corporate Loans
- The financing is available in all the popular currencies
- Both suppliers’ credit and buyers’ credit are offered by the bank.
- The funds are provided to exporter to fulfil the working capital needs before and after the realization of the export proceeds.
- The rate applicable on the advance is alike that on post-shipment of exported goods as per the RBI.
- The loan is liquidated after the realization of export proceeds.
- In pre-shipping financing, the exporter is granted credit to import or purchase raw materials, pack or process the goods for export.
- In post-shipment credit, the exporter is granted funds for export sales receivables post the shipment date of goods till the realization date of export proceeds.
- This facility is for trade transactions that involve purchase of accounts receivables.
- This funding solution allows the corporate to efficiently manage the receivables and boost sales.
- The seller is benefitted with instant liquidity, while the buyer receives funds at an affordable cost.
- This financing solution is for companies that partake in renting out goods such as furniture, construction equipments, computer hardware, and more to other companies.
- The bank advances funds against future rent receivables.
- This funding option is for distributors or dealers of a particular corporate.
- The financing is exclusively for the relevant purchases from that corporate.
- The funds help to strengthen the distribution network.
- This business loan product finances vendors of a particular corporate. The funds are offered against supplies made to that particular company.
- The financial assistance is for cash flow of a vendor, so that he/she can boost the entire supply chain’s reliability and performance.
- Axis Bank confirms the LCs for customers. After this, the post-shipment credit follows the protocols of the issuing bank.
- Thus, the exporters do not have to go through any recourse. The recourse is only to the issuing bank.
- The bank undertakes efficient and flexible handling of financial and commercial documents related to local trade, import, and export.
- Axis Bank has an extensive local branch network that offer collection services.
- Special correspondents are available to facilitate the banking arrangements.
- The bank issues different types of guarantees such as financial, performance, bid bond, and more.
- These are accepted by the major corporate and government agencies Capital Market Agencies.
- Guarantees are issues locally as well at the overseas correspondent bank alliances for participation by the global tenders.
- Trade Advisory Services: Axis Bank provides the maximum trading limit as per the maximum exposure of the customer at that particular point of time.
- The limit is pre-determined number of times to the customer’s margin amount.
- Business Loan for Chartered Accountants
- There is no need of collateral.
- You can borrow up to Rs. 50 lakhs
- There are no foreclosure and part-payment charges
- Repayment tenure is up to 48 months
- You need to submit 6 months bank statement and KYC documents.
- PAN Card is mandatory as well as business ownership proof (office or residence)
- You must also submit educational qualification proof such as the passing or degree certificate.
- For consulting doctors Form 16 A/26 AS is necessary.
- Submit last 2 years Income Tax Return, Balance Sheet, and Profit and Loss statement.
- Unsecured Dropline Overdraft
- Loan amount is between Rs. 3 lakhs and Rs. 50 lakhs.
- Tenure is between 24 months and 60 months.
- Office stability must be minimum 24 months
- The residential or office property in question should be owned
- If the property is rented, then the residence stability must be minimum 12 months. This is non-applicable if one shifts to owned house.
- Minimum income for individuals as per the ITR of the last 2 years should be Rs. 2.5 lakhs
- Minimum cash profit for the last 2 years for non-individuals should be at least Rs. 3 lakhs
- If the facility is taken of less than Rs. 10 lakhs, then the charges are Rs. 5,000
- If the facility is taken of more than Rs. 10 lakhs, then the charges are Rs. 15,000
- Small Business Banking (SBB)
- Loan amount is between Rs. 10 lakhs and Rs. 3 crores.
- There are no commitment charges.
- You can renew after 12 months from taking the OD or cash credit facility.
- The residential or office property must be self-owned
- Office stability must be of minimum 24 months
- If the property is rented then the residence stability must be of minimum 12 months. This is not applicable if the customer shifts to owned house
- Minimum income for individuals should be Rs. 2.5 lakhs according to the ITR of the last 2 years
- Minimum cash profit for non-individuals should be Rs. 3 lakhs for the last 2 years
- There are no commitment charges.
- You can borrow between Rs. 5 lakhs and Rs. 2.5 crores.
- Drop line overdraft facility is up to 36 months.
- From the date of availing the scheme, you can renew at the end of 12 months.
- The residential or office property must be self-owned
- Office stability must be of minimum 24 months.
- If the property is rented then the residence stability must be of minimum 12 months. This is not applicable if the customer shifts to owned house.
- Minimum income for non-individuals should be Rs. 3 lakhs for the last 2 years as the cash profit
- Minimum income for individuals should be Rs. 2.5 lakhs according to the ITR of the last 2 years
- SME Loans
- This is a cash credit or overdraft facility. It helps SMEs to carry with their business operations as per expectation.
- The funds can be used to purchase raw materials and finished goods, as well as fund receivables.
- The funds help SMEs to support export requirements and facilitate cash flow in business.
- This service is available in local and foreign currencies.
- This financing is in form of Letter of Credit, Bill Discounting, and Bank Guarantee.
- The service is available for SMEs, importers, and exporters.
- The term loan is for acquisition of fixed assets such as purchase of equipment/machinery, capital expenditure.
- It also helps with upgradation or modernization of technology and activities, business expansion, and other needs.
- This is a term loan against future expected rental receipts which come from lease contracts.
- It helps SMEs with cash flow and capital.
- This scheme is to provide liquidity against immovable property. You can take this business loan for general business needs.
- The borrowing amount is between Rs. 10 lakhs and Rs. 5 crore.
- The acceptable collateral includes residential/commercial/industrial immovable property.
- This scheme is for manufacturing micro and small enterprises.
- You can borrow between Rs. 10 lakhs and Rs. 5 crore.
- It is for all non-funds and fund-based working capital or term loan need.
- The collateral coverage is of 100% of the loan amount.
- This includes Rupee Export Credit/Cash Credit/Letter of Credit/Inland Bill Discounting/Export Credit in Foreign Currency and Term Loan/Bank Guarantee.
- This loan scheme is for services and trading micro and small enterprises.
- The collateral coverage is of 100% of the loan amount.
- You can borrow between Rs. 10 lakhs and Rs. 5 crore.
- The modes of finance are Bank Guarantee, Letter of Credit, Term Loan, Export Credit in Foreign Currency, or Discounting.
- The Services Power is for all non-fund and fund-based working capital and term loan needs. It includes Inland Bill/Rupee Export Credit/Discounting.
- This is a Term Loan facility. You can borrow between Rs. 5 lakhs and Rs. 20 crore.
- It is provided against contracted lease recent receivables.
- The repayments are done from lease rental receipts. The tenure is up to 10 years.
- This is also a Term Loan facility. The acceptable collateral is residential/commercial/industrial immovable property.
- You can borrow between Rs. 10 lakhs and Rs. 20 crores.
- It is meant for general business purpose. The tenure is up to 7 years.
- BLFP provides convenient funding to acquire an office space for your business.
- You can borrow between Rs. 5 lakhs and Rs. 5 crore.
- The tenure is up to 10 years.
- This type of Axis Bank Business Loan is a credit line for manufacturing, service, trading enterprises but not those who qualify for priority sector.
- The collateral coverage is 125% of the loan amount.
- You can borrow between Rs. 10 lakhs and Rs. 5 crore.
- The facility is for all non-fund based and fund-based term loan or working capital requirement including Rupee Export Credit/Cash Credit/Inland Bill.
- The mode of finance includes Letter of Credit, Export Credit in Term Foreign Currency, Discounting, and Term Loan.
- ZCL is provided to micro and small enterprises. The funds facilitate the company operations and help with term finance or working capital.
- The loan is secured by a guarantee cover under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises).
- You can borrow between Rs. 5 lakhs and Rs. 1 crore.
- New and existing eligible entities of MSEs from manufacturing and service sector can avail this loan.
- This scheme provides short-term liquidity by Bill Discounting.
- The mode is through a Letter of Credit provided by any bank.
- There is no need of collateral.
- You can borrow between Rs. 5 lakhs and Rs. 5 crore.
- The discounting is up to 180 days.
- It provides working capital facility to the customers. The customers include those with current account in Axis Bank.
- The bank analyzes your Current Account behaviour before sanctioning a loan between Rs. 10 lakhs and Rs. 2 crore.
- The scheme comes with flexible collateral security requirement.
- You can carry on business banking with accounts for secure and safe transactions.
- It will also benefit the company’s vendors and employees.
- The bank provides a wide-range of advisory, funding-related and operational banking services.
- These services allow you to interact, transact, and participate to increase your investment gains in the capital market.
- Corporate Card program provides rewards and recognition plans to employees.
- It is one of the best corporate gifting packages and helps with execution of promotional campaigns.
- It also comes with convenient and secure solutions for fund disbursement.
- The cash management services saves you time and efforts to collect recurring and regular payments.
- It also assists in clearing payments, and tracking transactions securely and effectively.
- You will get benefitted with corporate level business finance solutions for global trade.
- It also allows fund transfers to beneficiaries abroad and in India, trade finance, and transactions in Government Securities.
- The bank has online services through which you can pay easily for your products.
- The payment processing solutions are that for Master, Visa, and RuPay cards.
- These also come with reports for daily card transactions.
- Mudra Loan
- It is a collateral-free loan. So the borrowers do not have to provide any security to the bank to apply for Mudra Loan.
- You can borrow funds under facilities such as an Overdraft, Cash Credit, Term Loan, and Non-fund based options such as Bank Guarantee/Letter of Credit, etc.
The bank offers Corporate Loans to corporate and businesses in form of structured finance, term loan, and working capital. The working capital finance solution includes overdraft, cash credit, and other funding options as per the risk profile of the company. The funds help to east the liquidity position of the company. There are additional facilities for phone banking, internet banking, and more.
This type of loan is for a fixed period. It helps to fulfil demands of business upgradation and expansion. The structured credit solutions by the Axis Bank are for both short-term and long-term requirement of funds. You can use the loan amount for project funding, company infrastructure, real estate, as well as other corporate needs. The interest rate, repayment structure and schedule are as per the cash flow of the business. The bank offers advisory services to organizations for syndication of the loan.
Axis Bank offers collateral-free business loans between Rs. 3 lakhs and Rs. 50 lakhs. The tenure is between 12 months and 36 months. The unsecured loans are available for both self-employed non-professionals and self-employed professionals such as architects, doctors, engineers, CAs, and others. The funding helps to invest in factory/office infrastructure, upgrade technology, and expand operations, stock inventory for seasonal demands, cash flow, and other requirements.
Eligibility Criteria
Here are the eligibility criteria for Axis Bank business loan (unsecured facility):
Business Vintage | At least 3 years |
Turnover | At least Rs. 30 lakhs |
Age of the applicant | 21 years to 65 years (to the maturity of the loan) |
Residence/Office Stability |
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Income |
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Fees and Charges
Here is a list of fees and charges for unsecured business loan by Axis Bank:
Processing Fee | Up to 2% along with the applicable taxes |
Part Pre-payment Charges | 2% on the prepaid amount along with GST applicable |
Foreclosure Charges |
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Penal interest | 2% per month on overdue instalment amount |
Charges for Cheque Bounce | Rs. 500 per instance along with the applicable taxes |
This is a secured business term loan for the business expansion or the purchase of property/machinery. It is available for a higher amount and longer tenure in contrast to unsecured business loan. Here the business asset or the commercial/residential property is acceptable as collateral/security.
Eligibility Criteria
Here is a list of eligibility criteria for Axis Bank Secured Term Loan for Business:
Business Vintage | At least 3 years |
Turnover | At least Rs. 30 lakhs and maximum Rs. 15 crores |
Age of the Applicant | Minimum 21 years and maximum 70 years till the end of the loan tenure |
Residence/Office Stability |
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Minimum Income |
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Fees and Charges
Here is a list of fees and charges for the secured business loan by Axis Bank:
Processing Fee | Up to 1.25% along with the applicable taxes |
Pre-payment Charges | 1% of the outstanding principal |
Foreclosure Charges | 2% of the outstanding principal |
Penal Interest | 2% per annum over the existing interest rate |
Charges for Cheque Bounce | Rs. 500 per instance with additional taxes |
Axis Bank offers corporate loans for several needs. There are different types of corporate loans and services that you can check out below:
A) Structured Finance
The bank provides corporate with tailor-made business finance solutions. The services include underwriting or syndication for project loans and corporate loans, project appraisals, secondary purchase and sale of loan products, mergers and acquisition financing, hedging of interest rate and currency exposures. The financing products simultaneously help to mitigate the price and credit risk.
B) Trade Services
Axis Bank offers Trade Finance Services to corporate. This is for both imports and exports. The customers range across different regions, segments and industries. Additional services include comprehensive and timely MIS, collection and trade advisory services, quick documentation process, and other.
Import Financing |
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Export Financing | The facility is available in local and foreign currencies. |
AACB (Advances against Collection Bills) |
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Pre and Post Shipment Financing |
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C) Overseas Transactions
The bank offers overseas transactions from its existing overseas Singapore branch. The overseas transactions are acquisition financing, ECBs, buyers’ and suppliers’ credit, loan underwriting and syndication, back to back letter of credit, and different types of structured trade finance products. These services for overseas transactions shall be soon extended to proposed branch at Dubai and Hong Kong.
D) Supply Chain Management
A corporate firm can take a business loan for supply chain management from Axis Bank. Products under this funding option are for supply chain members. The funds improve the operational efficiency of the supply chain. The bank has designed a technology platform to deliver loan product related services and increase transactional convenience for the customers. The finance solutions for the supply chain are mentioned below.
Factoring of Receivables |
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Rent Receivable Financing |
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Dealer Financing |
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Vendor Financing or Purchase Invoice Financing |
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E) Letter of Credit
Axis Bank provides several funding services to importers and exporters. These services include Letter of Credit (LC) including discounting, negotiating, opening, confirming, advising, standby LC, foreign exchange, reimbursement, and more. These are structured specific to Letter of Credit requirements.
Advising Export Letters of Credit | Under exports, the bank offers advising Export Letters of Credits within the committed time period and to the beneficiary most expeditiously. |
Confirmations of Letters of Credit |
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Collection Services |
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Bank Guarantees |
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Bank Guarantees | The bank has overseas branches and a vast network of correspondent banks that undertake prompt collections for exports, bills under LC, imports, and others. |
International Bills Collection |
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Axis Bank offers business loans to Chartered Accountants. This type of loan is also offered to other self-employed professionals. You can use the funds to help grow your practice and expand the current business. The eligible applicants under CAs are consulting professionals and self-employed professionals with at least 2 years in the current profession. The eligibility for gross receipt is Rs. 5 lakhs and above.
Documents Required
Here is the list documents required:
Fees and Charges
Below-provided is a list of fees and charges for Axis Bank business loan for Chartered Accountants:
Fees and Charges | Details |
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Processing Fees | Up to 2% + applicable taxes |
Charges for Stamp Duty and Other Statutory Document | According to the law of the state |
Cheque bounce | Rs. 500 per instance with applicable taxes |
Penal Interest | 2% month on the overdue instalment amount |
No Objection Certificate/No Dues Certificate | Rs. 150 along with applicable taxes |
Interest Rate | 14.25% per annum |
This is a collateral-free dropline overdraft facility for Chartered Accountants and Doctors for professional needs. The facility comes with repayment flexibility and interest charged only on the utilized credit. The overdraft line is just like a normal overdraft facility at the initial year of the loan tenure. After this from the second year to the end of tenure, it drops every quarter in equal portion.
Eligibility Criteria
Here are the eligibility criteria for Axis Bank unsecured dropline overdraft facility:
Business Vintage | At least 2 years in the current professional |
Turnover |
At least Rs. 30 lakhs and up to Rs. 15 crores |
Age of the Applicant | Minimum 24 years to 70 years to the end of loan tenure |
Residence/Office Stability |
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Income |
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Fees and Charges
Below-mentioned are the other fees and charges:
Processing Fee | Up to 1% along with applicable taxes |
Pre-payment and Foreclosure charges | No charges |
Penal interest | 2% per annum over and above the existing interest rate |
Charges for Cheque Bounces | Rs. 500 per instance along with applicable taxes |
Annual maintenance charges at the end of 1st year |
This is a one-time fee: |
The bank offers various financing products to boost your business growth. Right from simple documentation to a hassle free customer experience, you can get all types of service benefits. The funding options are for long-term and short-term business plans.
A) Cash Credit and Overdraft
This type of funding is secured in nature. It is to support ongoing operational expenses and cash flow. The acceptable collateral includes commercial or residential property, liquid collateral, fixed deposit, and more. Interest on the product is on the basis of the utilized amount.
Eligibility Criteria
Here are the eligibility norms:
Business Vintage | At least 3 years |
Turnover | At least Rs. 30 lakhs and maximum Rs. 15 crores |
Age of the Applicant | 21 years to 70 years to the time of loan maturity |
Residence/Office Stability |
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Income |
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Fees and Charges
Here are the charges for Axis Bank Overdraft and Cash Credit Scheme:
Processing Fee | Up to 1.25% along with applicable taxes |
Pre-payment Charges | No charges |
Foreclosure Charges | 2% of the sanction limit |
Penal Interest | 2% per annum over the existing interest rate |
Charges for Cheque Bounce | Rs. 500 per instance along with applicable taxes |
B) Merchant Loan Overdraft
This is a collateral-free overdraft scheme for merchants. The proposition is on the basis of average monthly swipes at the Axis Bank’s terminal. You can opt for this facility to fulfil the daily working capital requirements of the business or for business expansion without the need of any security. The interest is also charged on the amount you utilize.
Eligibility Criteria
Below-mentioned are the eligibility norms:
Business Vintage | At least 3 years |
Number of Swipes | At least an average of 30 swipes in the latest 1 year |
Turnover | At least Rs. 30 lakhs and maximum Rs. 15 crores |
Age of the Applicant | 21 years to 70 years (to the maturity of the loan) |
Residence/Office Stability |
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Income |
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Fees and Charges
Here is the list of fees and charges for Axis Bank Merchant Loan Overdraft:
Processing Fee | Up to 2% along with applicable taxes |
Pre-payment Charges | No charges |
Foreclosure Charges | 2% of the sanction limit |
Penal Interest | 2% per annum over the existing interest rate |
Charges for Cheque Bounce | Rs. 500 per instance along with applicable taxes |
Axis Bank offers SME Loans to small and medium-sized enterprises with turnover up to Rs. 250 crore. The bank offers related credit and trade services as well. With customized funding options, SME loans allow companies to fulfil their dreams and growth requirements.
Working Capital Finance |
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Export Finance |
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Construction Finance | The bank helps to fund SMEs with real estate involving construction/development projects. |
Trade Finance |
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Project Finance | This type of financing is for new projects and businesses for expansion, modernization, and diversification of existing projects from the infrastructure sector. |
Term Loan |
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Lease Rental Discounting |
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Here are some of the SME loan products in detail:
A) SME Loans - Supply Chain Finance
Under SME loans, Axis Bank provides superior finance solutions for the Supply Chain. The loan can be taken by dealers and vendors of industries/corporate across different sectors. The solution provides working capital to leverage the business and ensure its reach to quick funds. Some of the products for Supply Chain Finance include dealer financing, vendor financing, factoring of receivables, and rent receivable financing.
B) Fast Track Products
Axis Bank provides SMEs with Fast Track Products. These come with a faster credit delivery when the eligible customers fulfil the required terms and conditions for relevant products. Below-mentioned are the details of the Axis Bank Fast Track Products for SMEs
Business MPower Overdraft |
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MSE Power |
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Services Power |
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Power Rent |
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Business MPower Term Loan |
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BLFP (Business Loan for Property) |
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SME Power |
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ZCL (Zero Collateral Loans) |
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LCBN Power |
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Business Power |
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Here are the Other Banking Services for SME loan customers:
Apart from business loans, Axis Bank also offers several banking services for SMEs for hassle-free transactions, disbursement of funds, cash management, and solutions for merchants, and a lot more.
Accounts |
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Capital Market Solutions |
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Cards |
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Cash Management Services |
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Treasury Solutions |
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Merchant Solutions |
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The PMMY (Pradhan Mantri Mudra Yojana) is a business loan scheme launched in April 2015 by the Government of India. The funding is for small and micro enterprises from the non-farm sector. Axis Bank Mudra Loan can be taken for a variety of needs to help with employment creation and income generation in allied agricultural activities and manufacturing, service, and trading enterprises.
Mudra Loan Categorization
The categorization is as per the stages of growth and development as well as need of finance. The funds benefit micro unit/entrepreneur. Also, the categories are a reference point to the following growth/graduation phase.
Shishu | Under this scheme, you can borrow up to Rs. 50,000. |
Kishore | Here, you can borrow more than Rs. 50,000 and up to Rs. 5 lakhs. |
Tarun | Here, you can borrow more than Rs. 5 lakhs to up to Rs. 10 lakhs. |
Frequently Asked Questions about Axis Bank Business Loans
Here are the Axis Bank business loans FAQs.
1. How does the bank determine the interest rate on business loan?
The Axis Bank Business Loan interest rate depends on the chosen loan facility, as well as the assessment of your business profile, past track record, financial assessment, tenure, and the loan amount, besides other terms and conditions.
2. Can you get a line of credit for a new business?
Axis Bank offers a line of credit to companies that have been under the current ownership for a period of at least 3 years.
3. What are the unique features of business loans by the bank?
The bank offers both secured and unsecured loans to small and medium enterprises as well as corporate. Even individual self-employed and professionals can avail the funds. The acceptable forms of security for the funds are usually immovable and financial assets. Axis Bank also offers several additional services related to cash management, wealth management, loan account, overseas transactions, Corporate Card, overdraft, and a lot more.
4. What are the eligibility criteria for Axis Bank unsecured business loans?
The eligibility norms for unsecured loans for business by the bank are simple. The turnover of the business should be at least Rs. 30 lakhs per annum. The business vintage must be at least 3 years. You should be minimum 21 years of age and not more than 65 years old at the end of loan’s tenure.
5. What is a penal interest and when do you have to pay this amount?
Penal interest is applicable on the overdue amount that you have not paid as per the EMI date. In case of non-payment or delay in payment of the EMI, you have to pay 2% additional interest over and above the already applicable interest.
6. Can you make partial payments?
You can make partial prepayment as well as foreclose the loan as per the applicable charges. The foreclosure and prepayment charges depend on the time period when you wish to repay the amount.