written by khatabook | November 28, 2022

Know Everything About Axis Bank Loan and Interest Rates of Loan

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Table of Content


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:

  1. 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.

  1. 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.

  1. No collateral or security:

             To obtain an Axis Bank business loan, you do not need to pledge any security or assets.

  1. 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.

  1. Age criteria 

The candidate must be between the ages of 21 and 65.

  1.  Existence of Business 

A minimum of three years in business is required 

  1. 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)

  1. Turnover

In order to be eligible for Axis Bank's business loans, organizations must have a minimum turnover of  30,00,000.

  1. 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.

  1. Availability of loan

 Axis Bank business loans are available to the following entities/individuals:

  1. Partnership enterprises
  2. Individuals with a registered business
  3. Limited Liability Partnerships (LLPs) 
  4. Societies and trusts (for hospitals and educational institutions)
  5. 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. 
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Can I get a 100% business loan?

Ans:

You might receive a 100% commercial loan if you have equity in an existing residential property, a guarantor, or your company assets, such as a client book and equipment.

Q: Are Axis Bank's business loans secured or unsecured?

Ans:

Axis Bank business loans are typically unsecured. However, the bank may request collateral if the applicant does not match the income criterion or any other criteria set by the bank or at the bank's discretion.

Q: What are the axis bank business loan minimum and maximum loan amounts?

Ans:

The loan amount must be at least 50,000. The loan amount is limited to 50 lakhs.

Q: Can I get an Axis Bank Mudra loan?

Ans:

Yes, Axis Bank provides Mudra loans, which allow you to borrow up to 10 lakh to create your own income-generating business.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.