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GST Based Overdraft

Banking Solutions for MSMEs

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Support your cash flows and ongoing working capital expenses with ready source of funding by availing Axis Bank’s GST based overdraft facility for MSME customers. This long term business loan is provided basis GST returns. Residential/Commercial/Industrial property can be offered as security. Interest on these products is charged only on the utilized amount.

  • Loan amount can be availed for minimum Rs. 10 Lakh up to Rs. 150 Lakh
  • Facility renewal at the end of 12 months from the date of availing this facility
  • Interest charged on utilized amount
Business Vintage
  • Minimum 3 years in current profession
Business Income
  • As per ITR, it should not be loss making in last 1 year (1 year ITR & Computation of Income required)
Age
  • Minimum 21 years at the time of loan application
  • Maximum 70 years at the end of loan tenure
Residence / Office Stability
  • Borrower should own either the of-fice or residential property
  • Residence stability should be of at least 12 months
  • Office stability should be of at least 24 months
Documents
  • KYC Documents
  • Duly filled in application form signed by the customer
  • Relevant financial documents
  • Bank account statement of last 6 months
  • PAN Card/Form 60
  • Business Proof
  • Last 12 months GST Returns
Loan Processing Charges

Up to 1.25% + applicable taxes

Part Pre-payment Charges

NA

Foreclosure Charges

2.00% of sanction limit

Penal Interest

2.00% p.a. additional on existing rate of interest

Repayment Instruction / Instrument Return Charges

Rs. 500/- per instance + applicable taxes

Q. Which customer segments are eligible for the OD facility?

A. GST based OD facility is designed for self- employed segments like individuals, proprietorship firms, partnership firms, LLP, pvt. ltd. companies and unlisted public companies.

Q. What is the rate of interest of the GST based OD facility?

A. We offer competitive interest rates for our loan facilities. The interest for each loan is determined based on assessment of your business profile, past track record, financial records, loan amount required and tenure of loan.

Q. How does interest get applicable on the limit given by bank?

A. Interest is charged only on the amount utilized and not on the entire sanctioned limit.

Q. Will there be any review charges post completion of 12 months of OD/CC facility?

A. No, we do not have any annual review charges. But for every OD renewals processing fees is levied.

Q. Is GST based OD a Dropline OD?

A. No, It’s a regular Overdraft facility, renewable every 12 months.