Axis Bank is a private-sector bank that has gained much popularity in the last decade. The bank provides several banking products and services to retail customers, small and medium-sized businesses, and large corporate companies. In this article, you will learn about the financing facilities offered by Axis Bank to small, medium, and large businesses.

Here are the details on schemes, rates, eligibility criteria, documents required, and common questions related to Axis Bank business loans.

Loan Types Offered	Business Loan 24×7 Business Loan 24×7 Overdraft Against Fixed Deposits
Loan Amount	Rs.50,000 up to Rs.50 lakh
Interest Rate	11% p.a.-20% p.a.

Types of Axis Bank Business Loans

Business Loans	Chartered Accountants, Engineers, and Doctors can apply for a business loan online to start their practice, scale the business, and purchase medical equipment/renovate the clinic premises. The minimum loan amount is Rs.50,000 at minimal documentation. Balance transfer facility is also available.
24×7 Business Loans	Get instant, paperless, and convenient business loans through internet banking. No collateral required to get loans up to Rs.15 lakh at competitive interest rates.
24×7 Overdraft Against Fixed Deposits	Avail overdraft on the fixed deposits in just three steps online with minimal paperwork.
MUDRA Loans	Small and micro-enterprises under the non-farm sector can avail of this loan, a government’s flagship scheme. The loan amount can range up to Rs.10 lakh.

Interest Rates

Floating Interest Rate

The small business interest rates are linked to the repo rate. The repo rate applicable with effect from 1 November 2019 is 5.15%.

Product	Spread Over Repo Rate	Effective Interest Rate (p.a.)	Reset
Overdraft	5.90% – 6.90%	11.05% – 12.05%	3 months
Cash Credit	5.90% – 6.90%	11.05% – 12.05%	3 months
Term Loan	5.90% – 6.90%	11.05% – 12.05%	3 months
Unsecured OD	8.60% – 12.60%	13.75% – 17.75%	3 months
Quick OD	12.15%	17.30%	3 months
CGTMSE	7.90% – 8.90%	13.05% – 14.05%	3 months

Fixed Interest Rate

Loan tenure up to 36 months

Product	Spread over 1 year MCLR*	Effective Interest Rate	Reset
Business Loan – SEP	5.80% – 9.55%	14.25% – 18%	No Reset
Business Loan – SENP	8.55% – 11.55%	17% – 20%	No Reset
Merchant Loan – TL	6.55% – 9.75%	15% – 18.2%	No Reset

*1-year MCLR as of 18 September 2019 is at 8.45%.

Loan tenure more than 36 months

Product	Effective Interest Rate
Business Loan – SEP	17% – 20%
Business Loan – SENP	14.25% – 18%
Merchant Loan – TL	15% – 18.2%

Features and Benefits

• The bank provides business loans for small businesses in several variants, such as overdraft, unsecured loans, term loans, cash credit, and more.
• Get financing to scale your business to the next level.
• The bank offers competitive interest rates, i.e. both in floating rate and fixed rate.
• The bank in three categories also offers mudra loans.
• Some schemes offer financing without collateral.
• Loans up to Rs.50 lakh are offered based on the borrower’s repayment capacity and other factors.

Eligibility Criteria

• Eligible Applicants
  • Individuals (with business registration)
  • Proprietorship Firms
  • Partnerships
  • Limited Liability Partnerships
  • Pvt ltd Companies
  • Unlisted Public Ltd. Companies
  • Trust & Societies (for educational institutes/hospitals)
• Minimum 3 years of business experience
• Minimum Rs.30 lakh annual turnover
• Age – 21 to 65 years

Documents Required

• KYC Documents
• Duly filled application form signed by the customer
• Relevant financial documents
• Bank account statement for the last six months
• PAN card/Form 60
• Business Proof

Fees and Charges

Nature of fee/charges	Cash Credit	Overdraft	Merchant Loan – Overdraft	Secured Term Loan	Unsecured Business Loan
Processing Fees	Up to 1.25% + Taxes applicable	Up to 1.25% + Taxes applicable	Up to 2.00% + Taxes applicable	Up to 1.25% + Taxes applicable	Up to 2.00% + Taxes applicable
Login Non-Refundable Processing Fee	5000/- + Taxes applicable	5000/- + Taxes applicable	NA	5000/- + Taxes applicable	NA
Renewal Processing Fee	Up to 1.00% + Taxes applicable	Up to 1.00% + Taxes applicable	Up to 1.00% + Taxes applicable	NA	NA
Stamp Duty & other statutory document charges	As per applicable laws of the state	As per applicable laws of the state	As per applicable laws of the state	As per applicable laws of the state	As per applicable laws of the state
Penal Interest	Additional 2.00% p.a. on existing rate	Additional 2.00% p.a. on existing rate	Additional 2.00% p.a. on existing rate	Additional 2.00% p.a. on existing rate	2.00% p.m. on the amount of overdue instalment
Prepayment/Foreclosure Charges	2% of the sanctioned limit	2% of the sanctioned limit	2% of the sanctioned limit	2% of the outstanding principle	Up to 24 months: 4% of the outstanding principle at the time of prepayment + GST as applicable 25-36 months: 3% of the outstanding principle at the time of prepayment + GST as applicable > 36 months: 2% of the outstanding principle at the time of prepayment + GST as applicable
Part Pre-payment charges	Nil	Nil	Nil	1% of the prepaid amount	2% + GST on the prepaid amount

Frequently Asked Questions

How is the interest rate arrived at in the case of business loans?

A business loan’s interest rate will be determined based on your business profile assessment, financial assessment, past track record, loan amount, and tenure.

How will the bank handle the excess amount I pay towards my loan account?

There are three possible cases if you make an excess payment towards your loan account.

1. The excess amount is greater than the EMI: If a service request for part payment is not created or received by the bank within two days of receipt, the excess funds will be adjusted towards the outstanding principal as part payment. 
2. The excess amount is equal to the EMI: If a service request for part payment is not created or received by the bank on the same day of receipt, the excess amount will be refunded back to your operative account.
3. The excess amount is less than the EMI: The excess amount will be kept in the loan account for 15 days. Post 15 days, the excess funds shall be adjusted towards the outstanding principal as part payment.

I have recently started a business and would like to scale it up. Does the bank help me with financing?

Axis Bank only offers financing for businesses with a minimum business experience of three years.