Paisabazaar Logo - Compare loans and credit cards

Merchant Cash Advance

iconicon
Get Cashback of ₹ 1,000* on Loan Disbursal
Valid till 31st March '26 *T&C Apply
Get Business Loan

Avail up to ₹1 Cr starting at 13%

google-play-icon

Google Play Store

4.5/5

15.5L Reviews

5.7cr+Satisfied Customers
65+Lending Partners
₹65k Cr+Loans Disbursed
Icon image of Best Loan Offers

Best Loan Offers

Curated Offers from 20+ Lenders

Icon image of Unsecured Loan

Unsecured Loan

Term Loan & OD Facilities Available

Icon image of Expert Advice

Expert Advice

Guidance & Assistance

Icon image of Top Up Facility

Top Up Facility

Loan to Get Additional Funds

Find Best Business Loan Offers

Sort by:

HDFC Bank
Max Loan Amt.Upto ₹75L
Rate of Interest10.75% - 28%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
ICICI Bank
Max Loan Amt.Upto ₹50L
Rate of Interest13.25% 19.25%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Axis Bank
Max Loan Amt.Upto ₹75L
Rate of Interest15% - 19.25%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Why Choose Paisabazaar?
image of Compare & Choose the <strong>Best Offer</strong>

Compare & Choose the Best Offer

image of Pre-approved Offers with <strong>Instant Disbursals</strong>

Pre-approved Offers with Instant Disbursals

image of Know Your <strong>Chances of Approval</strong>

Know Your Chances of Approval

image of End-to-End <strong>Digital Process</strong>

End-to-End Digital Process

How Can I Apply for a Business Loan Online?

Get up to ₹1 Crore in 5 Simple Steps

Step 1: Enter your mobile number in the application form.

Step 2: Enter OTP to verify your mobile number.

Step 3: Provide your personal details.

Step 4: Select a bank account for account aggregator consent.

Step 5: Compare offers and apply for the best-suited loan.

Eligibility Criteria for Merchant Cash Advance (MCA)

Eligibility Criteria
The Applicant Must have good CIBIL/credit score
Should be into a stable business
Annual Turnover As per lender’s criteria
Usually, while processing the loan application, the lender decides a fixed percentage of annual turnover, as an eligible loan amount
POS Machine Merchant must have POS machine in shop or store
Lenders may ask POS banks statement to ascertain eligibility

Features & Benefits of Merchant Cash Advance (MCA)

  • The repayment plan is decided based on daily collection at the Point of Sale (POS) machine in the shop. The fixed percentage of the daily collection is transferred to the lender account automatically. Such a percentage is called a ‘Holdback Percentage’
  • Even if loan repayment gets faster, the merchant does not get the advantage of the interest cost
  • Since the repayment is aligned with the credit at Point of Sales (POS) machine, it is preferred way for merchant and lender both. For the merchant, it gives flexible payment linked to the sales. For the lender, it is transparency linked to POS machine’s bank account
  • The repayment is hassle-free and automated, as the amount equivalent to holdback percentage is automatically transferred to the lender’s account, as per agreement between merchant and lender
  • No collateral is required to avail the Merchant Cash Advance. Since the lender can easily create the charge on POS machine’s bank credits, there is no additional requirement of security or collateral
  • Since the process to disburse MCA amount is very quick, the loan amount is credited to the merchant’s bank account almost immediately
  • The application process to avail Merchant Cash Advance is extremely simple and quick. Hence, you don’t have to prepare a bunch of documents and visit the bank multiple times in order to avail the fund.

Also Read: How to get collateral free business loan?

Documents Required to Avail Merchant Cash Advance

Applicant’s KYC Documents PAN Card
Passport, Aadhaar card , Voter’s ID card, Electricity Bill, Water bill, Driving License
Business Address Proof Ownership agreement or Rent agreement of business premises
GST Registration
Business License
Turnover Proof GST return of last 1 year
Bank statement of the current account & POS machine’s account (last 1 year)
Additional Requirement Details of existing loans and repayment status
Business Financial Document Balance sheet, P&L Account, Income Tax Returns of last 2 years

Also Know: Mudra Loan Eligibility Documents for New Business

How to Apply for Merchant Cash Advance Online?

Apply forMerchant Cash Advance loan by following below mentioned steps:

Step 1: Visit paisabazaar.com to check and compare from all the business loan options offered by leading financial institutions.

Step 2: Pick the deal that suits your business requirements by just filling the basic details like your name, mobile number, residence, loan amount, email address, annual turnover & profit, etc.

Step 3: After submitting the details, paisabazaar’s customer care professional will contact you to verify the submitted details and to proceed with the discussion on the chosen loan deal.

Step 4: Your business loan application will be sent to respective bank for further verification and then the bank’s representative will further contact you to proceed with loan formalities.

Step 5: After your loan application is approved, within defined working days the approved loan amount shall get disbursed in your mentioned bank account.

Avail Business Loan For
All Your Needs

Repayment Plans of Merchant Cash Advance

Since Merchant Funding is solely based on the amount received through Point of Sales (POS) machine, the repayment method is also aligned to the credit amount in the POS machine’s bank account. Usually, there are three different options, out which anyone can be chosen based on an agreement between merchant and lender.

Option-1: Split Withholding Method Point of Sales (POS) machine’s sales amount is split into two parts: One part is credited to lenders account towards repayment of the loan and the other part is credited to the merchant’s bank account.
The entire process is automated and seamless, hence preferred by most merchants and lenders.
Option-2: Trust Bank Withholding Method The entire amount of Point of Sales (POS) is credited to the bank account operated by the lender. The lender deducts pre-agreed amount towards repayment of the MCA loan and transfers balance amount to merchant’s bank account.
Option-3: ACH Withholding Method The amount received at POS machine gets credited directly to lenders’ account. After deducting agreed repayment amount, the balance payment is transferred to the merchant’s account.

Pros and Cons

Pros Cons
Instant and quick funding High interest rate
EMIs are not fixed Expensive small business loans
Borrowers with Bad or low CIBIL score can qualify Temporary solution to meet working capital requirements
No collateral required Funds are deducted on daily basis
Borrowed amount does not increase Interest rate varies from merchant to merchant

Should I avail Merchant Cash Advance?

You can avail the merchant funding to fulfil your urgent financial commitments. It saves your time to meet short-time cash crunch. Moreover, you can repay as you get the cash flow. There is also no need to arrange the collateral to get MCA. Hence, there is no fixed amount of cash outflow like bank’s EMI. However, the rate of interest is comparatively high. Hence, you would end up paying a high cost for the convenience of availing quick finance. It is recommended to avail the bank loan, as far as possible. In case you cannot arrange it, you can use MCA on a temporary basis.

How Can I Apply for a Business Loan Online?

Get up to ₹1 Crore in 5 Simple Steps

Step 1: Enter your mobile number in the application form.

Step 2: Enter OTP to verify your mobile number.

Step 3: Provide your personal details.

Step 4: Select a bank account for account aggregator consent.

Step 5: Compare offers and apply for the best-suited loan.

Explore Our Business Loan Lenders

HDFC BANKHDFC BANKAxis BankAxis BankICICI BankICICI BankIDFC First BankIDFC First BankKotak bankKotak bankTata CapitalTata Capital
View All Partners

Avail Business Loan For
All Your Needs

FAQs

Yes, merchant cash advance which is also known as Point-of-Sale (POS) loan is a short-term loan used to meet urgent cash requirements against daily or future debit or credit cards transactions.

If a borrower defaults on merchant cash advance, the lender can stop the further release of funds, increase the interest rate or can levy penal charges. Lenders can even report it to the credit bureau that shall result in the decrease of the borrower’s credit score.

To get merchant cash advance or POS loans, applicants can visit the nearest retail store offering this type of loan and negotiate on the interest rate as per the business requirements or desired loan amount.

Most of the POS loans or merchant cash advances are collateral-free that helps SMEs to meet their working capital requirements without submitting any security. It also helps startups in starting their business and even supports already existing MSMEs to manage their cash flow.

Business Loan Articles

icon image of Unsecured Business Loans: Lenders Notice More Than Just Your Credit Score

Unsecured Business Loans: Lenders Notice More Than Just Your Credit Score

icon image of Paisabazaar
Paisabazaar26 Aug 2025
icon image of Secured vs. Unsecured Business Loans: Which One Should You Choose?

Secured vs. Unsecured Business Loans: Which One Should You Choose?

icon image of Vandana Punj
Vandana Punj04 Apr 2025
icon image of How to Choose the Right Business Loan

How to Choose the Right Business Loan

icon image of Vandana Punj
Vandana Punj03 Apr 2025
icon image of MSME – Its Meaning, Classification, Loan Schemes, Role and Importance in India

MSME – Its Meaning, Classification, Loan Schemes, Role and Importance in India

icon image of Rahul Misra
Rahul Misra29 Jan 2025
icon image of Ways To Raise Capital For Your Startup Business

Ways To Raise Capital For Your Startup Business

icon image of Rahul Misra
Rahul Misra29 Dec 2024
icon image of 6 Reasons for Your Business Loan Application Getting Rejected

6 Reasons for Your Business Loan Application Getting Rejected

icon image of Rahul Misra
Rahul Misra01 Dec 2024
icon image of Business Loan or Overdraft – Which is Better?

Business Loan or Overdraft – Which is Better?

icon image of Rahul Misra
Rahul Misra09 Aug 2024
icon image of Types of Business Loans in India

Types of Business Loans in India

icon image of Rahul Misra
Rahul Misra01 Jan 2024
icon image of 5 Best Business Loan Schemes for Women Entrepreneurs

5 Best Business Loan Schemes for Women Entrepreneurs

icon image of Rahul Misra
Rahul Misra13 Apr 2023
icon image of 6 Business Ideas to Make Money Fast

6 Business Ideas to Make Money Fast

icon image of Rahul Misra
Rahul Misra29 Mar 2023
View All Articles
quotes icon

What our customers say

Business loan complex hotta h

Business loan thoda complex lagta h muhje, lekin Paisabazaar pe team ne sab steps simple bana diya muhje ache se support kiya. Thank you.

icon image of avatar
Meher SinghJan 22, 2026

Hassle-free Business Loan

I would like to take a moment to sincerely appreciate Rohit Kumar\'s (EW25946) continuous support and clear communication. Your timely responses, cooperation, and willingness to help have made a significant difference and contributed greatly to smooth coordination and successful outcomes. Your professionalism and positive approach are truly commendable, and it has been a pleasure working with you. Thank you for your dedication and for maintaining such effective communication throughout.

icon image of avatar
MD Gausar AlamJan 20, 2026

Business loan liya tha, interest acha mila

Muhje darr tha ki interest rate kahi lenders jda na charge krle, phir paisabazaar pe sahi interest rate milla. Mera credit profile dekh ke or bhi bht saare factors consider karke interest rate milla.

icon image of avatar
Mohit DasJan 15, 2026

Uncle ne bataya tha Paisabazaar ke baare mai

Mai online loans ke baare mai jada nhi janta, mere chacha ne bataya tha ki Paisabazaar se loan acha milta hai. Try kiya or asli mai bohot acha experience tha.

icon image of avatar
Raju RastogiJan 14, 2026

Boutique ke liye small loan liya tha

Boutique ke liye small loan liya tha. Small entrepreneurs ke liye bht important hota hai sahi jagah se loan lena. Paiabazaar ki team bohot helpful hai.

icon image of avatar
Vanni KumariJan 13, 2026

Loan approval ke chances dikhate h

Paisabazaar se business loan lo toh pata rehta h ki kaha loan approval ke chances jada hai. Isse thoda tension kam jata h rejection ka. Acha feature hai.

icon image of avatar
Sobhit GuptaJan 5, 2026

Advisors bohot ache the

Business loan thoda confusing hota h. Advisors ne sahi guide kiya. Thanks you.

icon image of avatar
Prakash MishraJan 4, 2026

Trusting platform

I take business loan from Paisabazaar two months before. very nice experience. No jhamela, only good work done. Thank you

icon image of avatar
Priya ShawDec 30, 2025

Chote business ke liye bhi loan mila

Chote businesses ko loan milne mai dikkat hoti hai lekin yaha mil gaya. Thank you for helping small business also. Good job keep it up.

icon image of avatar
Rupesh SharmaDec 29, 2025

Quick and easy steps

Business loan apply karne se pehle yeh sochke dar lagta tha ki bohot mehnat lagegi. Lekin mai toh surprise hi hogayi Paisabazaar ka simple or easy steps dekh ke. Itna smooth process tha ki bikul hi samjh nhi aaya kab loan approve hua or kab account mai paise agaye.

icon image of avatar
Ishita SinghDec 28, 2025
View All Testimonials
Sumit Kumar profile
Written ByLinkedIn icon
Sumit Kumar
Shamik Ghosh profile
Reviewed ByLinkedIn icon
Shamik Ghosh

Paisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners

*Applicable for selected customers

Knapsack with coins

Check Best Business Loan Offers
with Quick Disbursal

Scroll to top