Axis bank

Axis bank Business Loan

Years

Apply Axis bank Business Loan @ 17%
imozi

Interest Rate

17%-19%

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Processing fee

Upto 2%

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Loan Tenure upto

3 years

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EMI per Lakh

3,565

About Axis Bank Business Loan

Axis Bank, formerly known as UTI Bank, is the third largest bank in India. UTI Bank changed its name to Axis Bank in the year 2007. The bank has its head office in Mumbai. The bank caters to large and mid-corporate customers and SME businesses. They offer a variety of products and services which include cash credit services, demand and short- term loans, project finance, export credit, factoring, channel financing, structured products, discounting of bills, guarantees, foreign exchange, and derivative products.

Why Choose Axis Bank for Business Loan?

Business Loans offered by Axis Bank are categorised to suit every individual business requirement. Apart from that, they are known for:

  • Quick and hassle-free processing
  • Simplified and minimal documentation
  • Flexible tenure
  • Balance transfer facility available
  • Affordable processing fee and other charges
  • No pre-closure charges
  • No hidden charges
  • No collateral required

Features and Benefits of Axis Bank Business Loan

  • Purpose of loan: To meet all fund working capital and other business requirements including cash credit/rupee export credit/inland bill discounting/letter of credit/bank guarantee/export credit in foreign currency and term loans. Doctors or medical practitioners can avail the Axis Bank Business Loan for purchasing medical equipment or renovate their clinic premises. Engineers can take their business to greater heights, while chartered accountants can scale up their practice.
  • Who can apply: Professionals such as engineers, doctors, or chartered accountants
  • Quantum of loan: Quantum of loan ranges from 50,000 to 50 Lakhs for Small Business Loans. For Corporate Loans and SME Loans, quantum ranges from 5 Lakhs to 20 Crores.
  • Repayment: Flexible repayment of minimum 1 year to maximum up to 10 years depending on the nature and type of loan.
  • Collateral security: Not required
  • Pre-closure charges: Nil for floating rate loans

Axis Bank Business Loan Interest Rates

Axis Bank Business Loan interest rates are linked to the 1-year and 3-months MCLR (Marginal Cost of Funds Based Lending Rate) of the bank which is 8.90% and 8.65% respectively as on 04.06.2019. The interest rate details for Axis Bank Business Loans are as follows:

Loan Type Tenure Interest Rates

Business Loan for SEP

Up to 36 months

1-year MCLR + 5.35% to 1-year MCLR + 9.10% = 14.25% to 18%

Business Loan for SENP

Up to 36 months

1-year MCLR + 8.10% to 1-year MCLR + 11% = 17% to 20%

Merchant Loan - TL

Up to 36 months

1-year MCLR + 6.10% to 1-year MCLR + 9.30% = 15% to 18.2%

Business Loan for SEP

Above 36 months

1-year MCLR + 8.10% to 1-year MCLR + 11% = 17% to 20%

Business Loan for SENP

Above 36 months

1-year MCLR + 5.35% to 1-year MCLR + 9.10% = 14.25% to 18%

Merchant Loan - TL

Above 36 months

1-year MCLR + 6.10% to 1-year MCLR + 9.30% = 15% to 18.2%

Overdraft

 

All tenures

3-month MCLR + 3% to 3-month MCLR + 5% = 11.65% to 13.65%

Cash Credit

All tenures

3-month MCLR + 3% to 3-month MCLR + 4% = 11.65% to 12.65%

Unsecured OD

All tenures

3-month MCLR + 5.75% = 14.40%

Quick OD

All tenures

3-month MCLR + 9.25% = 17.90%

Merchant Loan OD

All tenures

3-month MCLR + 5.95% to 3-month MCLR + 8.85% = 14.60% to 17.50%

CGTMSE - CC

All tenures

3-month MCLR + 4% = 12.65%

Secured Term Loan

All tenures

1-year MCLR + 3.45% to 1-year MCLR + 5% = 12.35% to 13.90%

CGTMSE - TL

All tenures

1-year MCLR + 4% = 12.90%

Types of Business Loans at Axis Bank

Axis Bank has various categories for Small Business Loans, Corporate Loans, and SME Loans. The features of each loan are mentioned below.

Business Loans to Doctors, Engineers and Chartered Accountants

  • Axis Bank offers Business Loans to professionals such as doctors, chartered accountants, and engineers. Business Loans to engineers is given to take the business to the next level, Business Loans to doctors for purchase of medical equipment or to renovate clinic premises, and Business Loan to Chartered Accountant is given to scale up their practice.
  • Loan amount available up to 50 Lakhs
  • No collateral security
  • Flexible repayment period up to 48 months

MSE Power (For Manufacturing MSEs)

  • MSE Power is designed especially for Micro and Small Manufacturing Enterprise (MSE)
  • For all fund based and non-fund based working capital and term loan requirements including cash credit/rupee export credit/inland bill discounting/letter of credit/Export credit in foreign currency and term loans/Bank Guarantee.
  • Loan amount is from 10 Lakhs to 5 Crores
  • Up to 100% collateral coverage is stipulated

Services Power (For Service and Trading MSEs)

  • Loan can be utilised for all fund based and non-fund based working capital and term loan requirements including cash credit/inland bill discounting/letter of credit/rupee export credit/export credit in foreign currency and term loan/Bank guarantee.
  • Loan amount from 10 Lakhs to 5 Crores
  • Up to 100% collateral coverage is stipulated

SME Power

  • Purpose of loan similar to MSE Power and Services Power
  • Loan amount ranges from 10 Lakhs to 5 Crores
  • Up to 125% collateral coverage is stipulated

Business MPower Overdraft

  • It is basically a loan against immovable property to meet general business requirements
  • Loan amount ranging from 10 Lakhs to 5 Crores
  • Collateral security of commercial/residential and industrial property

Business MPower Term Loan

  • Provides term loan facility required to take business to the next level
  • Loan amount ranging from 10 Lakhs to 5 Crores
  • Repayment period up to 7 years
  • Collateral security of residential/commercial and industrial property

Power Rent

  • Term loan facility against the lease/rent receivables
  • Loan amount ranging from 5 Lakhs to 20 Crores
  • Repayment through lease/rental receipts
  • Repayment period up to 10 years

LCBN Power

  • This provides short term liquidity by discounting bills backed by a letter of credit issued by any bank.
  • Loan amount ranging from 5 Lakhs to 5 Crores
  • Bill discounting up to 180 days
  • No collateral security stipulated

Zero Collateral Loan

  • Loan without collateral to facilitate MSME sector borrowers to avail both working capital and term loan facilities. This facility is secured by CGTSME guarantee cover.
  • New and existing Micro and Small Enterprises are eligible to avail the loan
  • Loan amount ranging from 5 Lakhs to 1 Crore

Business Loan for Property

  • Offers a convenient way to acquire office space for business
  • Loan amount ranging from 5 Lakhs to 5 Crores
  • Repayment period up to 10 years

Business Power

  • Offers working capital facilities to current account customers based on the dealings in the current account.
  • Loan amount ranging from 10 Lakhs to 2 Crores
  • The extent of collateral security depends on the track record of the current account

Export Finance

This facility is mainly for companies involved in exports. This is offered either as pre-shipment credit or post-shipment credit of international trade. It is designed to suit the financial demands of the company to spread its business overseas. It will either be extended in local currency or in the currency of a particular country. In this scheme the quality of debtors is given more weightage than the creditworthiness and economy of a particular country.

Project Finance

This financing as the name suggests is project based. It could be long-term infrastructure or industrial projects. Finance is based on the projected cash flow of the company. Start-ups generally require additional capital if the project is an ambitious one.

Construction Finance

In the case of construction projects there is not enough cash flow till the handover stage. There will be a constant requirement of finance during the progress of the project. Since there is a good scope for real estate industry Axis Bank has designed long term loan schemes which have flexible repayment tenure up to 5 years.

Eligibility for Axis Bank Business Loan

Individual banks have guidelines to determine the eligibility of the customer for Business Loan. The guidelines set by Axis Bank to assess the eligibility for Business Loans are as follows:

  • Individuals (with business registration), Proprietorship firm, partnership firm, Limited Liability partnership, Pvt Ltd Companies, Unlisted Public Ltd Companies, Trust and Society can apply for the Business Loan.
  • The age of the applicant should be minimum 21 years when applying for the loan and up to 65 years at the time of loan maturity.
  • The condition of Chief Promoter being in the productive age group is stipulated in case of some schemes.
  • The business should have been in existence at least for 3 years
  • The business should have been profit making for the last 2 years
  • In case of loans to Chartered Accountants, the gross receipts should be over 5 Lakhs
  • For loans to Doctors and Engineers the annual turnover should be between 30 Lakhs to 10 Crores.
  • The credit score should be above 750. Both Company credit score and the promoters' score will be considered.

Factors Affecting Eligibility of Axis Bank Business Loan

The main factors affecting the eligibility of Axis Bank Business Loan are age, income, repayment capacity, and the credit score of the applicant. The guidelines for eligibility may differ from bank to bank. For Axis Bank Business Loan, the following are the main eligibility criteria:

  • Income: For Axis Bank Business Loan, the business should have been profit making for at least 2 years and the turn over should be a minimum of 30 Lakhs.
  • Age: Axis Bank has stipulated the age of the persons involved in the business should be between 21 years and 65 years.
  • Stability in business and profit: The loan repayment capacity is assessed by the income stability of the applicant. To assess the stability of business Axis Bank has stipulated that the applicants should have been in the present business for at least 3 years and profit making for the past 2 years.
  • Relationship with the bank: Long-standing relationship with the bank plays a vital role in deciding the eligibility of the applicant. Long-standing customer with satisfactory dealings with the bank will always be given preference while considering the loan sanction.
  • Past repayment pattern: Credit history of the applicant will be the key to decide the repayment capacity of the applicant. The firm or company should not have delayed any past loan repayments. Also, the Credit Card dues should have been paid on time and the usage of the card should have been regulated. These aspects impact the credit history which is the key to indicate one's repayment capacity.
  • Too many running loans: The firm or the company who has been borrowing frequently to meet business requirements will sooner or later be in a serious finance stress situation. Compulsive borrowing would land them in a situation where they would have bitten more than they could chew. A business in itself does have ups and downs and the income level will not be the same at all times. Added to this if the firm or company has been borrowing erratically, then such proposals would be difficult to consider since lending institutions foresee a high credit risk.
  • Credit score: The eligibility in terms of the repayment capacity of the applicant is determined by the credit score. The credit score is based on the credit history of the applicant. Past loans repaid promptly will give a healthy score. Low credit score will hamper the eligibility of the applicant. The preferred credit score is 750.

Factors Affecting the Credit Score

  • Increased number of unsecured loans: One should plan the loans in such a way that there is a good mix of secured and unsecured loans. If the number of unsecured loans is more the credit score will be impacted.
  • Multiple loan applications: Making frequent loan enquiries will reflect in one's credit report. If there are too many enquiries in a short span the credit score will decline proportionately.
  • Delayed payments: Delayed payment of loan instalments and credit card dues will decline the credit score. It is always better to make funds available prior to the due dates of payments to ensure the dues are promptly paid.

Tips to Improve Credit Score

Credit history plays a vital role while lending institutions have to take a credit decision. Having understood the reasons for rejection of a loan proposal one needs to further know how to improve the credit profile. For this some simple rules have to be followed.

  • Avoid frequent applications to different lending institutions for loans. Too many enquiries appearing in the credit report may not be viewed positively.
  • An applicant without a credit history also is not preferred since the lending institutions cannot gauge the credibility and creditworthiness of the applicant. For this creating a credit history by borrowing small loans and repaying in short period is recommended.
  • Credit Cards are meant to make high-end shopping convenient and not for impulsive buying which will create a liability. Credit Cards used judiciously and payments made within the due date will go a long way in improving one's credit history.

Reasons for Rejection of the Business Loan Application

Normally the details recorded in the credit report will remain for 5 years. A lot might have transpired during these years. There might have been a period when one would have had financial crises and not have paid the loan instalments and Credit Card dues in time and after pursuing a long-time bank might have ultimately written off or settled the dues. In the later years the same might have been set right and the credit score as on date may be a healthy one. Even then, such comments seen in the report will impact the credit decision.

  • Credit report comments: The credit scores are based on the repayment pattern of the individual. If the loans are repaid in time then the scores will be good, but at times these credit reports bear some remarks like "written off" or "settled". Also, some remarks like days past due will also appear. All these give an inference to the bank that the borrower has been defaulting loan repayments and sometimes the lender has felt that it is impossible to recover the dues and hence the dues have been either "written off" or "settled".
  • If the partners of the Partnership Firm, Proprietor of the Proprietorship Firm, or the Directors of the Company living in a shared accommodation might find it a disadvantage at times. If by chance any one of the inmates have defaulted in paying instalments and Credit Card dues and the bank sees the same address in the loan application, then the proposal may be dropped. Banks have the addresses and identity details of defaulters which they normally match with the fresh applications received. A credit score of the person involved in running the business is equally important as the credit score of the firm/company itself.
  • If one has stood as guarantor for a loan that has defaulted, then this will reflect in the credit history which will work against their Business Loan application.
  • If one does not fit into the loan to EMI ratio of 40% to 50% the loan may be rejected. The applicant must be very careful while choosing the EMI. Should always check EMI with EMI calculator provided and arrive at the EMI that suits the loan to EMI quotient before applying for the loan.
  • The behaviour of the applicant in terms of borrowing will be indicated by the number of loan enquiry one would have made. If the credit report shows too many enquiries at a short interval, it is not considered good.

If all these aspects are taken care of and steps taken to improve them then the chances of a loan application being considered will be bright.

How to Increase the Axis Bank Business Loan Eligibility?

  • A clean record: Repayment of instalments of existing loans and Credit Card dues on time will keep the credit history good and will help one to maintain a clean track record. Usage of Credit Card wisely and making the entire payment of the bill due date is the right way to make the facility a convenience. If one sticks to revolving payment, then they are bound to get into financial stress since the interest outgo on the balance amount is close to 36% which will mount up the dues and will make it difficult for one to pay the dues on time.
  • Loan tenure: Axis Bank Business Loans have flexible repayment period from of up to 10 years depending on the Business Loan availed. They have various categories of Business Loan to suit individual requirement. EMI arrived at by choosing a longer repayment term will be comfortable on one's pocket. By doing so there will be very less chance in defaulting in payment towards Business Loan. Axis Bank does not charge any pre-payment or pre-closure charges. One can make use of this facility and make part payments or pre-close the loan when the going is good in the business.
  • Creditworthiness: Credit history depicts the creditworthiness of an applicant. It is necessary to maintain a good repayment record to obtain a good credit score. One has to make sure not to default in payment of credit card dues and loan instalments in order to maintain a clean credit history. One should always strive to have a credit score above 750 since most of the lending institutions insist on a credit score of 750 to consider a loan application. In the case of firms and company the credit history of the business organisation as well as the individual credit history of promoters will be considered.

Documents Required for Axis Bank Business Loan

  • Duly filled application form for Business Loan
  • Two recent photographs of the applicant in passport size
  • Proof of identity
  • Proof of residence
  • Proof of business incorporation and premises
  • In case of companies, KYC documents of Directors and in case of partnership firms KYC documents of partners are required.
  • Bank statement and sanction letters of existing loans
  • Income Tax Returns of the last 2 years
  • PAN Card or Form 60 of all applicants/ co-applicants/ guarantors
  • Audit report

Other Products Offered by Axis Bank

Axis Bank also offers the following products and services apart from Business Loans:

Savings Account

 

Salary Account

 

AxisDirect Invest Account

Current Account

Sukanya Samriddhi Yojana

Safe Custody

Safe Deposit Locker

Pension Disbursement Account

National Pension System (NPS)

Axis Active

PMJDY

Recurring Deposits

Fixed Deposits

 

Fixed Deposit Plus

Encash 24 Flexi Deposit

Tax Saver Fixed Deposit

Debit Cards

 

Credit Cards

Transit Cards

Pre-paid Cards

 

Commercial Debit Cards

Commercial Credit Cards

Digital Payments

Home Loan 

Education Loan

Personal Loan

 

Holiday Loan

Commercial Vehicle & Construction Equipment Loan

Two Wheeler Loan

Car Loan   

Loan Against Securities

Loan Against Property

Gold Loan

 

Loan Against Fixed Deposit

Forex Card       

Online Fund Transfer

International Fund Transfer

Foreign Currency Demand Drafts

 

Foreign Currency Cash

Foreign Currency Travellers Cheques

Mutual Funds      

7.75% Savings Bonds

Demat Account        

Atal Pension Yojana

Public Provident Fund

IPOSmart

 

Future Planning Solutions

Alternate Investment Products

Kisan Vikas Patra

 

AxisDirect        

Mutual Fund SIP

Home Insurance

Life Insurance

Motor Insurance

Travel Insurance

Health Insurance

Business Guard

PMAY

Pradhan Mantri Suraksha Bima Yojana

Bima Uphaar Yojana        

Pradhan Mantri Jeevan Jyoti Bima Yojana

Cash Management System

Treasury Service       

Trade & Forex      

Corresponding Banking & FI Services

Fastag

 

Capital Market Service

Start Up Banking

 

Government Business

Bank Smart

Priority Banking

How to Use MyMoneyMantra EMI Calculator to Calculate Axis Bank Business Loan EMI?

You can calculate the EMI of your proposed Axis Bank Business Loan using MyMoneyMantr's EMI Calculator:

  • To begin with, visit MyMoneyMantra
  • Proceed further by selecting the EMI Calculator mentioned under the tab of Financial Tools on the home page.
  • Fill in the required loan parameters, viz. Loan amount, tenure, and interest rate
  • Click on the Calculate button to the EMI instantly
  • Try different permutations and combinations to arrive at a suitable EMI option

How to Decide the Right Amount Of EMI with Axis Bank EMI Calculator?

EMI calculator is a tool to arrive at the EMI one has to pay on a certain amount. By using the EMI calculator and on trying various combinations one can decide the loan amount to avail. While deciding the EMI one should consider how fast one wants to repay the loan, how much one can afford towards EMI and what is the interest rate one is comfortable with. In case of project finance and construction finance one should have the estimates of the project ready and should always anticipate 20% to 25% enhancement in the project cost on completion and plan the loan amount accordingly.

  • Decide the amount to loan 
  • Calculate the Business Loan eligibility
  • Review all the present responsibilities

Axis Bank Business Loan - Processing Fee and Other Charges

Availing the Business Loan from Axis Bank involves the following charges apart from interest rate:

Type of Charge Description

Processing fees

  • Cash Credit/ Overdraft/ Secured Term Loan: Up to 1.25% of loan amount + applicable taxes
  • Unsecured Business Loan/ Merchant Loan - Overdraft: Up to 2% of loan amount + applicable taxes

Login non-refundable processing fee

  • Cash Credit/ Overdraft/ Secured Term Loan: 5,000 + applicable taxes
  • Unsecured Business Loan/ Merchant Loan - Overdraft: NA

Renewal processing fee

  • Cash Credit/ Overdraft/ Merchant Loan - Overdraft: Up to 1% of loan amount + applicable taxes
  • Secured Business Loan/ Unsecured Business Loan: NA

Stamp Duty and other statutory document charges

As per applicable law of the state

Charges for ROC filing

  • Cash Credit/ Overdraft/ Secured Term Loan/ Merchant Loan - Overdraft: 1,200 + applicable taxes
  • Unsecured Business Loan: NA

Non-submission of stock statement

  • Cash Credit: 2% of the outstanding loan amount from the default date + applicable taxes
  • Overdraft/ Secured Term Loan/ Merchant Loan - Overdraft/ Unsecured Business Loan: NA

Non-submission of property or stock insurance

  • Cash Credit/ Overdraft/ Secured Term Loan/: 2% additional interest rate on the outstanding amount
  • Merchant Loan - Overdraft/ Unsecured Business Loan: NA

Charges for cheque book issuance

  • Cash Credit/ Overdraft/ Merchant Loan - Overdraft: First 100 leaves are free (for new borrowing account) and 2 per leaf thereafter
  • Secured Term Loan/ Unsecured Business Loan: NA

Cheque bounce

500 per instance + applicable taxes

Penal interest

  • Cash Credit/ Overdraft/ Merchant Loan - Overdraft/ Secured Term Loan: 2% p.a. additional on existing interest rate
  • Unsecured Business Loan: 2% p.m. on the overdue instalment amount

No dues certificate or no objection certificate charges

150 + applicable taxes

CERSAI charges

  • Cash Credit/ Overdraft/ Merchant Loan - Overdraft/ Secured Term Loan: 100 + applicable taxes
  • Unsecured Business Loan: NA

Part pre-payment charges

  • Cash Credit/ Overdraft/ Merchant Loan - Overdraft: Nil
  • Secured Term Loan: 1% of the amount prepaid
  • Unsecured Business Loan: 2% + GST on amount prepaid

Foreclosure Charges

  • Cash Credit/ Overdraft/ Merchant Loan - Overdraft: 2% of sanction limit
  • Secured Term Loan: 2% of the outstanding principal
  • Unsecured Business Loan:
    • Up to 24 months: 4% of the principal outstanding at prepayment + applicable GST
    • 25 to 36 months: 3% of principal outstanding at prepayment + applicable GST
    • After 36 months: 3% of principal outstanding at prepayment + applicable GST

Axis Bank ? Customer Care

You can contact on the below-mentioned numbers to speak to the Axis Bank representatives:

1800-419-5959 OR 1800-419-6969

Axis Bank Business Loan - Frequently Asked Questions

Who can avail Axis Bank Business Loans?

Sole Proprietorship Firms, Partnership Firms, Private Limited Companies, Unlisted Public Limited Companies, Professionals like doctors, engineers, chartered accountants, and so on can avail Axis Bank Business Loans.

What is the loan tenure offered for Axis Bank Business Loans?

The maximum tenure is between 48 months and 10 years depending on the category of loan you wish to avail.

What are the various funding options under SME Secured loan?

Fresh loans against unencumbered property/ties to be used for business purposes, balance transfer and top-up loans against existing encumbered properties, and purchase of commercial property.

What kinds of properties are accepted as collaterals for SME Secured loan?

Residential, commercial, and industrial properties will be accepted as collaterals for SME Secured Loan.

What is the quantum of loan available?

Loan quantum ranges from 1 Lakh to 50 Lakhs for Small Business and for Corporate Loans, and from 5 Lakhs to 20 Crores for SME Loans.

How much time does the bank take to convey its decision on my loan application?

Axis Bank typically conveys its decision within 2 weeks for credit limit of up to 5 Lakhs and 3 weeks for credit limit above 5 Lakhs and up to 25 Lakhs (for micro & small enterprises borrowers) and 30 working days (for other borrowers) from the date of receiving the application. The application should be completely filled and is submitted along with all the required documents as per the checklist of the bank.

For what purposes the loan will be granted?

  • Finance will be provided to meet all fund based and non-fund based working capital and term loan requirements including cash credit/rupee export credit/inland bill discounting/letter of credit/bank guarantee/Export credit in foreign currency and term loans.
  • The loan is sanctioned to engineers to take their business to the next level
  • Loan sanctioned to doctors for purchase of medical equipment and for the renovation of clinic premises.
  • Loan to chartered accountants to help them scale up their business

Why Apply for Axis Bank Business Loan at MyMoneyMantra?

With MyMoneyMantra's online lending marketplace, you get following benefits on applying for an Axis Bank Business Loan:

  • Instant access to over 70 bank and other financial institutions with details product information
  • Consistent support from business financing experts at MyMoneyMantra for your loan application.
  • EMI calculator to help you check your proposed EMI beforehand and plan your monthly budget accordingly.
  • Instant decision on your loan application
  • Simplified documentation process with doorstep documentation pick-up service
  • Guarantee of confidentiality of the information provided by you

How to Apply for Axis Bank Business Loan at MyMoneyMantra?

You can easily apply for the Axis Bank Business Loan through MyMoneyMantra since the procedures that follow after filing the application online are taken care of by MyMoneyMantra while you can concentrate on your business. To apply for Axis Bank Business Loan through MyMoneMantra, follow the steps given below:

  • To begin with, visit MyMoneyMantra's website
  • Click on the loans tab to check out the drop down menu
  • Click on the Business Loan option to go to the relevant page
  • Now select the lending bank/financial institution of your choice from the options given on the page or you can directly fill up the application and then choose the lending partner.
  • Fill in all the relevant information required for applying for the loan and send in your application
  • Once the filling of the application is complete and the process is initiated, MyMoneyMantra representatives will follow up you for all the documentation procedure and then the application will be forwarded to the concerned team at the bank.

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