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

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.

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

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

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.

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Axis Bank Business Loans FAQs

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 are the eligibility criteria for Axis bank business loan?

Eligibility of Axis bank business loan depend on many factors.

Age: The applicant's age must be between 21 years to 65 years.

Business stability: business must have been in continuity for at least 3 years.

Business Turnover: turnover must be in a range from 30 lakhs to 10 crores.  Salaried individuals/Independent professionals (Chartered Accountants, Engineers, and Doctors) /self-employed individuals are eligible to apply for a business loan.

What is the Special Benefits of Business Loans Offered by the Axis Bank?

Axis Bank offers special benefits on business loans to its customers. No collateral security is required to avail a business loan, Business loans can be extended upto 50 lakhs, offered at a competitive pricing structure, Simplified Access and Minimal Documentation required.

What are the Documents Required for Axis Business Loan?

You need to submit the various documents for business loan KYC Documents(Voter's Identity Card, Driving License, Passport, Aadhaar Card, PAN Card), Last 2 years ITR(Income Tax Return), PAN Card / Form 60 for all applicant / Co-applicant / Guarantor, Audit Report.

Can I get an Axis bank business loan with a 700 credit score?

Yes, you can get a business loan easily if you are having a credit score of 700, but it depend on other factors stable business, income etc.

What is the rate of interest for Axis Bank business loan?

Axis Bank offers a competitive interest rate of 14.25% on its business loan. The interest rate will be decided according to the assessment of your business profile, past track record, financial assessment, loan amount and tenure.

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.

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.