Looking for an instant loan to grow your business?
Looking for an instant loan to grow your business?

Axis Bank Business Loans

Updated on :  

08 min read.

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 OfferedBusiness Loan
24×7 Business Loan
24×7 Overdraft Against Fixed Deposits
Loan AmountRs.50,000 up to Rs.50 lakh
Interest Rate11% p.a.-20% p.a.

Types of Axis Bank Business Loans

Business LoansChartered 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 LoansGet 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 DepositsAvail overdraft on the fixed deposits in just three steps online with minimal paperwork.
MUDRA LoansSmall 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%.

ProductSpread Over Repo RateEffective Interest Rate (p.a.)Reset
Overdraft5.90% – 6.90%11.05% – 12.05%3 months
Cash Credit5.90% – 6.90%11.05% – 12.05%3 months
Term Loan5.90% – 6.90%11.05% – 12.05%3 months
Unsecured OD8.60% – 12.60%13.75% – 17.75%3 months
Quick OD12.15%17.30%3 months
CGTMSE7.90% – 8.90%13.05% – 14.05%3 months

Fixed Interest Rate

Loan tenure up to 36 months

ProductSpread over 1 year MCLR*Effective Interest RateReset
Business Loan – SEP5.80% – 9.55%14.25% – 18%No Reset
Business Loan – SENP8.55% – 11.55%17% – 20%No Reset
Merchant Loan – TL6.55% – 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

ProductEffective Interest Rate
Business Loan – SEP17% – 20%
Business Loan – SENP14.25% – 18%
Merchant Loan – TL15% – 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/chargesCash CreditOverdraftMerchant Loan – OverdraftSecured Term LoanUnsecured Business Loan
Processing FeesUp to 1.25% + Taxes applicableUp to 1.25% + Taxes applicableUp to 2.00% + Taxes applicableUp to 1.25% + Taxes applicableUp to 2.00% + Taxes applicable
Login Non-Refundable Processing Fee5000/- + Taxes applicable5000/- + Taxes applicableNA5000/- + Taxes applicableNA
Renewal Processing FeeUp to 1.00% + Taxes applicableUp to 1.00% + Taxes applicableUp to 1.00% + Taxes applicableNANA
Stamp Duty & other statutory document chargesAs per applicable laws of the stateAs per applicable laws of the stateAs per applicable laws of the stateAs per applicable laws of the stateAs per applicable laws of the state
Penal InterestAdditional 2.00% p.a. on existing rateAdditional 2.00% p.a. on existing rateAdditional 2.00% p.a. on existing rateAdditional 2.00% p.a. on existing rate2.00% p.m. on the amount of overdue instalment
Prepayment/Foreclosure Charges2% of the sanctioned limit2% of the sanctioned limit2% of the sanctioned limit2% of the outstanding principleUp 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 chargesNilNilNil1% of the prepaid amount2% + 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.

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