Axis Bank is India's third largest private bank, having a global presence to serve its vast customer base. It provides several financial solutions to both the retail and business sectors. The corporate, SME, and small business sectors can all benefit from the bank's business loans.
Did You Know? Axis Bank is a well-known brand in the banking industry, and the bank's loan solutions are among the most well-thought-out and borrower-friendly alternatives available.
Overview of Axis Bank
Axis Bank offers a personalized loan application procedure tailored to an individual's needs. The loan is available for up to ₹1,500,000 at low-interest rates. The processing fee is determined by several criteria and ranges from 1.25% to 1.50% of the loan amount sanctioned. If the borrower fails to make a payment, they must pay an extra 2% each year in interest.
Why Apply for a Business Loan from Axis Bank?
The Axis business loan provides quick funding for your business needs with advantageous terms and conditions. You should pick an Axis Bank business loan because of the benefits listed below:
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Loans For Multiple Purposes:
The Axis business loan amount can be used for almost any legitimate business necessity, such as finance of working capital, trade finance, finance for a project, finance for construction purposes, and so on.
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Adjustable Repayment Term:
The repayment of the Axis Bank business loan can be extended from 12 to 60 months, depending on the borrower's needs.
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No collateral or security:
To obtain an Axis Bank business loan, you do not need to pledge any security or assets.
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Various Payment Options:
Easy and multiple Payment choices, which include auto-debit, electronic clearance service, and post-dated cheque, are available.
Also Read: Know How To Get Instant Loan without CIBIL Score
How to Apply for an Axis Bank Business Loan
Axis Bank offers business loans in two ways: online and offline. You may apply for a business loan from Axis Bank online by following the procedures outlined below:
- Visit Axis Bank's official website.
- Select the 'Business Loan' tab.
- You will be taken to a website that details the loan's characteristics.
- Once you've decided to take out the loan, go through the details on the website and click the Apply Now option.
- A new tab will open with a new page where you will fill out your basic information such as name, email address, cellphone number, state, and city.
- You will be sent to the next steps when you click the submit button.
If you prefer an offline loan application, you may visit the local Axis Bank office, where bank professionals will tell you about the application procedure.
Also Read: All About Loan Repayment - Importance, Meaning and Methods
Eligibility Criteria For Axis Bank Loan
Axis Bank wants the applicant to own either an office or a residential property. If the applicant is living in a leased place, the applicant should have at least 12 months of residential stability.
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Age criteria
The candidate must be between the ages of 21 and 65.
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Existence of Business
A minimum of three years in business is required
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Minimum Earnings
The bank's minimum income criteria for the purpose of this loan have been divided into two categories: persons and non-individuals. The specifics of these criteria are shown below.
For Individuals - ₹2,50,000 as a minimum income (as per ITR for the last 2 years)
Non-Individuals - The minimum cash profit is ₹3,000,000. (as per ITR for the last 3 years)
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Turnover
In order to be eligible for Axis Bank's business loans, organizations must have a minimum turnover of ₹30,00,000.
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Stability of Residence or Office
The criteria of the bank for residential or office premises are stated below. However, if the applicant moves to an owned home, the requirement will be waived. The bank wants at least 24 months of office stability.
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Availability of loan
Axis Bank business loans are available to the following entities/individuals:
- Partnership enterprises
- Individuals with a registered business
- Limited Liability Partnerships (LLPs)
- Societies and trusts (for hospitals and educational institutions)
- Public Limited Companies that are unlisted
Also Read: What is No Cost EMI? How is it Different From Regular EMI?
Eligibility conditions in the case of Mudra Yojna
The following are the eligibility conditions for business loans under the Mudra Yojana:
- Small and micro firms should participate in revenue-generating activities.
- Manufacturing, commerce, and services activities, including agricultural operations, should be included.
- The company's credit requirements should be less than ₹10 lakh.
Application Form for Axis Bank Business Loan
Candidates seeking a business loan must complete the Emerging Enterprise Group Facility Application Form, which is accessible at the local branch office and online. The following sections must be completed with the necessary information:
- Loan title
- Constitution (Proprietorship, Individuals, Partnership Firm, Private Ltd., Public Ltd, Trust, or other)
- The account number
- The firm's name
- Details about the applicant and a recent photograph
- Details on the co-obligate/guarantor, as well as a recent photograph
- Firm information (Office address, website, date of incorporation, industry type)
- Contact information
- Details of income
- Address of residence
- Loan information
Axis Bank Business loan Interest Rates and charges
Rate of Interest - The rate of interest is charged on the basis of business profile assessment, the previous record of the company, its financial assessment, the amount of the loan, and the tenure of the loan.
- Amount of loan - Can be up to ₹50 lakhs
- Tenure - 36 months
- Type of loan - Unsecured
- Processing fee - 1.25 % to 1.50 %
- Cheque bounce charges - ₹500
- Penal rate of interest - an additional 2 % on the existing rate of interest
- Foreclosure charges -
- Post-payment of the first EMI: up to 24 months - 4% of the principal outstanding at the time of prepayment
25-36 months - 3% of principal outstanding at the time of prepayment
More than 36 months - 2% of outstanding principal at the time of prepayment - Stamp Duty - As per the law of the relevant state
- Part-payment charges - 2 % plus GST on the prepaid amount
- Duplicate no due certificate/NOC - ₹50 plus taxes
Also Read: What are the Differences between Write-Off and Waive Off?
Documents Required For Axis Bank Business Loan
The Bank's documentation procedure for its Business loans has been simplified to allow for speedier processing of paperwork and, as a result, faster disbursement of loans if sanctioned by the Bank.
The fundamental KYC documents, as well as a few extra documents to verify the existence of the business entity as well as the income/profit producing ability or potential of the business organization, are among the documents requested by the Bank.
The Bank's necessary paperwork is mentioned below.
- Completed and signed application form (by all the relevant parties in case of a company or partnership firm or trust)
- KYC documents
- For address-proof - documents like Electricity bills, Passport, Telephone bills, Bank statements with cheques, ID cards issued by the post office, or any additional ID or address-proof document which can be presented, subject to the Bank's approval
- For ID proof - documents like PAN cards, Voter ID cards, passports, Driving licenses, Senior citizen ID cards, and Government ID card are required.
- Income tax return for the last two years
- Profit and loss statement, balance sheet, etc., financials of last two years
- PAN card/Form 60 for all applicants or Co-applicant or Guarantors
- Last six months' bank statement
- Documents about entity formation, identification, and address verification
- Partnership deed, trust deed, Memorandum, and articles of association for proof of the business.
Evaluation by bank
The bank evaluates the borrower's business and approves the loan for business entities that have:
- Acceptable Internal/external rating
- Cash flow that is healthy
- The business model that is long-term
- Management, professionalism and business leadership
- Excellent track record
- Corporate management
Conclusion
Self-employed, sole proprietorship, and partnership businesses are given priority when creating Axis Bank loans in India. A business loan can be obtained and used to expand an existing firm or to establish a new one. Axis Bank provides a hassle-free business loan application procedure for enterprises of all sizes with streamlined documentation, flexible tenures, and low interest rates.
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