Axis Bank offers working capital facilities to small businesses with a business vintage of at least 3 years and with a business turnover of Rs. 30 lakh to Rs. 15 crores. The bank charges interest rates only on the utilized amount and does not charge any commitment fee. Axis Bank also offers Non-Income based surrogate products for meeting working capital requirements. In addition, the bank also offers export credit products and non-fund-based products, including Letter of Credit, Bank Guarantee, Buyers Credit, and Loan Equivalent Risk (LER) to small businesses.
Working Capital Facilities for Small Businesses – 2022
| Working Capital Loan: Loan Amount | |
| Loan Type | Loan Amount |
| Secured Overdraft | Up to Rs. 3 crore |
| Secured Quick Overdraft | Up to Rs. 1.5 crore |
| GST Overdraft | Up to Rs. 1.5 crore |
| Cash Credit | Up to Rs. 3 crore |
| Secured Term Loan | Up to Rs. 5 crore |
| Secured Quick Term Loan | Up to Rs. 2 crore |
| Secured Merchant Loan | Up to Rs. 2.5 crore |
| Unsecured Merchant Loan | Up to Rs. 50 lakh |
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Overdraft
Axis Bank offers line of credit of up to Rs. 3 crore to meet working capital requirements against collateral security of immovable property.
Below stated are the three types of Overdraft facilities offered by Axis Bank:
a) Secured Overdraft:
| Loan Amount | Up to Rs. 3 crore |
| Basis of Loan Sanction | Collateral Security of Immovable Property |
| Tenure | Renewable every 12 months |
| Commitment Charges | Nil |
| Monthly Dropline | Available |
| Interest Rate | Charged on the utilized amount |
b) Secured Quick Overdraft:
| Loan Amount | Up to Rs. 1.5 crore |
| Basis of Loan Sanction | Based on Banking Conduct |
| Tenure | Renewable every 12 months |
| Commitment Charges | Nil |
| Interest Rate | Charged only on the utilized amount |
c) GST Overdraft:
| Loan Amount | Up to Rs. 1.5 crore |
| Basis of Loan Sanction | Based on GST Returns |
| Tenure | Renewable every 12 months |
| P&L and Balance Sheet | Not Required |
| Interest Rate | Charged only on the utilized amount |
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Cash Credit
Axis Bank offers Line of Credit up to Rs. 3 crore to meet business requirements against the primary security of stocks, debtors and other current assets.
| Loan Amount | Up to Rs. 3 crore |
| Primary Security / Collateral | Stock, Debtors and other current assets |
| Tenure | Renewable every 12 months |
| Loan-to-Value Ratio | Up to 100% of the property value |
| Commitment Charges | Nil |
| Interest Rate | Charged only on the utilized amount |
Term Loan
Axis Bank offers Term Loan for various business expansion purposes.
a) Secured Term Loan:
| Purpose | Long-term loan for Business expansion and diversification |
| Loan Amount | Up to Rs. 5 crore |
| Tenure | Up to Rs. 15 years |
| Loan-to-Value Ratio | Up to 100% of the property value |
b) Secured Quick Term Loan:
Secured Term Loan is offered for the self-employed segment based on banking conduct.
| Purpose | Long-term loan for Self-employed based on the banking transactions |
| Loan Amount | Up to Rs. 2 crore |
| Tenure | Up to 15 years |
| P&L and Balance Sheet | Not required |
| Interest Rate | Repo rate linked Floating rate |
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Secured Merchant Loan:
| Purpose | Secured Overdraft facility offered on the basis on average monthly swipes made through Axis Bank’s EDC Terminals |
| Loan Amount | Up to Rs. 2.5 crore |
| Tenure | Renewable every 12 months |
| Commitment Charges | Nil |
| Loan-to-Value Ratio | Up to 100% of the property value |
| Interest Rate | Charged only on the utilized loan amount |
| Facilities Available | Overdraft, Dropline Overdraft & Term Loan |
Unsecured Merchant Loan:
| Loan Amount | Up to Rs. 50 lakh |
| Purpose | Unsecured Overdraft Facility based on the average monthly swipes through Axis Bank EDC terminal |
| Tenure | Renewable every 12 months |
| Commitment Charges | Nil |
| Dropline Overdraft Tenure | Up to 36 months |
| Interest Rate | Charged only on the utilized loan amount |
Note: With effect from 18th Dec 2022, Axis Bank 1 year MCLR is 8.75%.
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Basic Eligibility Criteria for Axis Bank Working Capital Loan
- Business Vintage: Minimum 3 years
- Business Annual Turnover: From Rs. 30 lakh to Rs. 15 crore
- Applicant shall either own a residence or office