Axis Bank Business Loan

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:

1. Working Capital Finance

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.

2. Term Loans

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.

3. Unsecured Business 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	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.
Income	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

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	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%
Penal interest	2% per month on overdue instalment amount
Charges for Cheque Bounce	Rs. 500 per instance along with the applicable taxes

4. Secured Term Loan

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.

• 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.

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	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	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

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

5. Corporate Loans

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	The financing is available in all the popular currencies Both suppliers’ credit and buyers’ credit are offered by the bank.
Export Financing	The facility is available in local and foreign currencies.
AACB (Advances against Collection Bills)	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.
Pre and Post Shipment Financing	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.

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	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.
Rent Receivable Financing	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.
Dealer Financing	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.
Vendor Financing or Purchase Invoice Financing	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.

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	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.
Collection Services	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.
Bank Guarantees	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.
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	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.

6. Business Loan for Chartered Accountants

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.

• 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

Documents Required

Here is the list documents required:

• 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.

Fees and Charges

Below-provided is a list of fees and charges for Axis Bank business loan for Chartered Accountants:

Fees and Charges	Details
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

7. Unsecured Dropline Overdraft

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.

• Loan amount is between Rs. 3 lakhs and Rs. 50 lakhs.
• Tenure is between 24 months and 60 months.

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	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
Income	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

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: 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

8. Small Business Banking (SBB)

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.

• 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.

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	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
Income	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

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.

• 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.

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	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.
Income	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

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

9. SME Loans

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	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.
Export Finance	The funds help SMEs to support export requirements and facilitate cash flow in business. This service is available in local and foreign currencies.
Construction Finance	The bank helps to fund SMEs with real estate involving construction/development projects.
Trade Finance	This financing is in form of Letter of Credit, Bill Discounting, and Bank Guarantee. The service is available for SMEs, importers, and exporters.
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	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.
Lease Rental Discounting	This is a term loan against future expected rental receipts which come from lease contracts. It helps SMEs with cash flow and capital.

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	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.
MSE Power	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.
Services Power	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.
Power Rent	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.
Business MPower Term Loan	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 (Business Loan for Property)	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.
SME Power	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 (Zero Collateral Loans)	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.
LCBN Power	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.
Business Power	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.

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	You can carry on business banking with accounts for secure and safe transactions. It will also benefit the company’s vendors and employees.
Capital Market Solutions	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.
Cards	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.
Cash Management Services	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.
Treasury Solutions	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.
Merchant Solutions	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.

10. Mudra Loan

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.

• 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.

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.