Axis Bank Business Loan: Features, Benefits, Interest Rates

Overview

A business loan is financing provided by banks and other financial institutions to establishments of all sizes. Financing of this sort usually comes with some fees and surcharges. These loans are sought for many reasons, including securing day-to-day expenses, expanding businesses, upgrading technologies, and many others.

India’s SME sector continues to be largely dependent on banks and NBFCs for financing. This type of loan is designed to assist in the growth and development of any company, as well as to fund operational expenses and so on. Furthermore, business loans may also be an effective way for a business to support crucial aspects of its operations.

Businesses can now take advantage of tailored loans designed to fit the needs of start-ups and emerging businesses. It can flourish thanks to these loans, and as a result, gain a distinct advantage that is essential for staying competitive in the modern economy.

Let us begin by defining what a business loan is. A business loan is financing provided by banks and other financial institutions to establishments of all sizes. Financing of this sort usually comes with some fees and surcharges. These loans are sought for many reasons, including securing day-to-day expenses, expanding businesses, upgrading technologies, and many others.

You must pay careful attention to countless factors prior to the application. Be it the participants involved in the agreement, the paperwork, the risk associated with it and what it can cost. In the following section, we will discuss their criteria for consideration including the maximum loan amount offered by Axis Bank, the rate of interest, eligibility criteria, the paperwork involved and the FAQs. We will elaborate more on each point in the following section.

Highlights:

Business vintage3 years at the least
AgeApplicants must be 21 years of age or older when applying for a loanWhen the loan term ends, the maximum age should be 65
Turnover30 Lacs
Minimum incomeIndividuals must have a minimum income of 2.5 lakhs based on their last two years’ tax returnsIn case of corporate entities, the last two years’ cash profit should be at least Rs 3 lakhs
Residence/office stabilityOwning either an office or a residential property is idealIf residing in rented accommodation, at least one year of residence stability is required, this requirement does not apply if moving into an owned homeIt is ideal for the office to be in operation for a minimum of 24 months.
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Features of Axis Bank Business Loan

You can borrow up to ₹ 75 Lacs (unsecured loans):
Their business loans range from ₹ 50,000 to ₹ 75 Lacs for small and medium-sized businesses that qualify. You can take advantage of their larger loan portfolio to maximize the likelihood of obtaining funding and advancing your organization.

Credit is not secured by collateral:
Axis Bank offers secured and unsecured business loans to meet your requirements. In the event you decide to take out an unsecured loan there is no collateral or security necessary.

Timely turnaround and prompt payments:
Monitoring mechanisms and process improvements are periodically used to evaluate their TAT (turnaround time). Compared to other lenders, you can get a business loan through their online application within 2-3 business days.

Low rates of interest:
Business loans at Axis Bank are determined using a combination of data collection analytics and algorithms on an individual basis. Therefore, their interest rates are the most competitive.

Extended Loan Tenure:
Offers substantial credit relief to your business over the course of 6 months and up to a maximum of 36 months. For short-term business problems, it may be a suitable solution. As an emergency measure, you can give your organization the cushion it needs by getting a business loan that has long tenure loans.

No Hidden Costs:
There are no additional supplemental charges with Axis Bank. In addition to interest, there is only a single processing fee of 2-3% on your borrowed amount. You will thereby keep a larger amount for your business.

Flexible Repayments:
The EMIs can be paid monthly or every two weeks for business loans. Their repayment plans can be adjusted according to your billing and sales patterns. The repayment period can be set according to your budget and repay at your discretion.

Ease of application:
Get fast, simple loan processing by visiting a branch near you or applying online. Once eligibility criteria are met, minimal documentation is required, and approval is swift.

Read More: L&T Finance Holdings Ltd Business/SME Loan

Benefits

There are several banks that can help you capitalize on today’s rapidly advancing working environment. In particular, business loans from Axis Bank offer the following benefits.

Rapid processing of business loans
They have minimized the time it takes to process loans with their Online Loan Application process. Thus, reducing manual work and providing same-day approval for loans.

Stabilizing cash flow
Ensure smooth operation of your company by getting a business loan. Whilst running your business, you may find yourself short of cash on occasions. There can be sudden requirement of funds like tending to equipment failures, immediate payments to service providers, and such. These temporary setbacks can be managed with the help of a Business Loan.

Improve your credit score
Businesses experiencing a credit score decline resulting from sudden monetary crisis may find business loans particularly useful. By paying Axis Bank’s business loans on schedule, you can give your credit score a boost. Payment on time results in a better credit score.

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Required paperwork

Identity proof: A copy of the voter’s identity card / Passport / Copy of the Aadhar card/ Copy of the DL/Ration Card / Telephone bill / Electricity Bill / Passport / Lease agreement/ Sales Tax Certificate.

Income Proof: A statement of your bank account from the last six months

  • Completed and signed application form by the applicant/ Form 60

Documents pertinent to the financial business: Last 2 Years ITR with calculated Balance sheet/ income profit and loss account details.

Business Proof: Sole Proprietorship Declaration, Certified true copy of Memorandum and AoA.

Interest Rates

CategoriesFees
An interest rate ofIn the range of 14.25% to 18.50% per annum
Fees for loan processingUp to 2.00% plus applicable taxes
Prepayment charges for part of the paymentIn addition to the 2% charge, GST is also applied to prepaid amounts.
Penalties in case of non-payment of dues2.00% per month on the balance. on the overdue installment
Charges resulting from foreclosureAfter the first EMI is repaid:·       until 24 months – 4% of the remaining balance upon prepayment on top of the applicable tax··       25-36 months – 3% of the remaining balance upon prepayment on top of the applicable tax···       > 36 months – 2% of the remaining balance upon prepayment on top of the applicable tax
Charges for bounced checksRs. 339/- for each failed transaction plus taxes
Duties associated with stampsAs per the law of the state
Duplicate No Due Certifications/NOCsRs. 50/- plus taxes

Read More: How to get Business Loan in Punjab National Bank (PNB) Business Loan ?

Axis Bank offers a variety of business loans

Axis Bank extends tailored financial solutions to small and medium-sized businesses in India. Their financing is streamlined to avoid the unnecessary complexity that typically comes with traditional bank loans. Applications, consents, and pay-outs are all very straightforward.

There are both secured and unsecured business loans available through Axis Bank. It also provides funds to professionals and self-employed individuals. There is no collateral requirement when taking out an unsecured loan. On the other hand, obtaining secured loans requires you to submit an agreed-upon asset guarantee (most commonly real estate and investments).

The secured Loan amount ranges from ₹ 5 Lacs to ₹ 10 crores on an average for tenure starting from 12 months to 15 years, whereas the maximum loan amount without collateral is ₹ 75 Lacs. The bank provides competitive interest rates, flexible repayment terms, and additional assistance on loan accounts.

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Summary

In order to fund start-up expenses or expand, businesses must have access to sufficient capital. Because of this, companies seek out business loans in order to obtain the finance they need. Applicants are required to repay such loans according to the terms and conditions set forth at the time of application.

Entrepreneurs and business owners must be aware of their financing options and fully comprehend how a loan works, what it entails, and what they must do as a result. A loan appraisal basically ensures that the borrower is able to make the most of the funds and the lender is able to make a profit.

To know more details on SME loans from Axis Bank,  you can email [email protected] or call at  +918886666821.

FAQ’s

Who can get a loan to finance their business?

Approximately what is the interest rate on the Loan Facility?

Can I still apply for small business loans if my operation is new?

What are the uses of business loans?

How does Axis Bank initiate a business loan application?

Is getting a business loan difficult?

What is the typical timeframe for a business loan to be repaid?

Does pre-closing differ from part-prepayment?

What happens if I miss out on my EMI payment or if there is Cheque is bounced?

In the case of a loan against property application, what is the TAT (turnaround time)?

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