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Merchant Loan

Banking Solutions for MSMEs

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Axis Bank offers an attractive proposition for MSME merchants who can avail of collateral free overdraft facility on the basis of average monthly swipes through Axis bank terminal. This facility of merchant financing can be used by them to expand their business besides fulfilling daily working capital needs without having to provide any security. Moreover, interest is charged only on the amount utilized.

  • Loan amount can be availed from minimum of Rs. 5 Lakh up to Rs. 2.5 Cr.
  • Facility renewal at end of 12 months from the date of availing this facility
  • Drop line overdraft facility can be availed for maximum tenure of 36 months
  • No commitment charges
Business Vintage
  • Minimum 3 years in current profession
No Of Swipes
  • Minimum average of 30 swipes in latest 12 months
Business Income
  • Minimum business income of Rs. 30 Lakh
Age
  • Minimum 21 years at the time of loan application
  • Maximum 70 years at the end of loan tenure
Residence / Office Stability
  • Either office or residential property is to be owned
  • In case of rented accommodation, residence stability should be of at least 12 months, not applicable if shifted to owned house
  • Office stability should be of at least 24 months
Minimum Income
  • In case of individuals, minimum income to be of 2.5 lakh as per ITR for last 2 years
  • In case of non-individuals, minimum cash profit should be Rs. 3 lakh for last 2 years
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
Loan Processing Charges

Up to 2 % + 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 are the customer segment eligible under Merchant Loan?

A. We offer Merchant Loan to individuals, proprietorship firms, partnership firms, LLP, pvt. ltd companies, unlisted public companies, trust and society (educational institutions/hospitals and excluding charitable trusts).

Q. Which types of loans can be offered under this product?

A. Customers can avail Overdraft, Dropline Overdraft and Term Loan under Merchant Loan offering.

Q. What is the tenure of Term Loan and Overdraft under Merchant loan?
  • We offer an overdraft facility for 12 months, however it is renewable on an annual basis
  • Dropline Overdraft and Term Loan range between 12-60 months
Q. What are the types of collateral acceptable under this loan?

A. Residential property, commercial property, term deposits, liquid collaterals etc. are acceptable.

Q. Is it mandatory to have Udyam registration certificate?

A. To avail benefit of MSME as per Government regulation, MSME registration is mandatory for borrower.