Running a small business often means paying for stock, equipment, staff, rent and expansion before the next round of revenue comes in. Axis Bank’s small business loan solutions help MSMEs manage these requirements through unsecured business loans, working-capital facilities, secured finance and micro loans. Axis Bank offers collateral-free business funding of up to ₹75 lakh with tenures from 6 to 60 months, while its broader small business banking portfolio supports larger secured requirements as well.
Axis Bank Small Business Loan Overview
Axis small business finance covers more than one loan product. A business can choose short-term unsecured funding, secured term loans, working capital facilities or smaller microloans according to its size and cash flow requirement. Here are the details:
| Particular | Product Detail |
|---|---|
| Collateral-free business loan | Up to ₹75 lakh |
| Business loan tenure | 6 to 60 months |
| 24×7 business loan | Digital MSME loan |
| Minimum business vintage | 3 years |
| Minimum turnover for 24×7 loan | ₹30 lakh |
| Eligible structures | Proprietorship, partnership and private company |
| Microloan range | Up to ₹25 lakh |
| Secured finance | Available under SBB products |
| Working capital | Cash, credit and overdraft options |
| Application mode | Digital or branch-based |
Read More on: Axis Bank Business Loans
Eligibility Criteria for Axis Bank Small Business Loan
| Eligibility Factor | Published Requirement |
|---|---|
| Business vintage | At least 3 years for 24×7 business loan |
| Annual turnover | At least ₹30 lakh for 24×7 business loan |
| Business structure | Proprietorship, partnership or private company |
| Micro-loan age | 21 to 60 years |
| Microloan industry stability | Minimum 3 years |
| Microloan premises stability | Minimum 2 years |
| Banking history | Reviewed during credit assessment |
| Financial records | Required according to product |
Axis Bank also offers different unsecured assessment routes based on banking conduct, GST returns and ITRs. Therefore, two businesses with similar turnover can qualify through different underwriting routes depending on the records available.
Interest Rate of Axis Bank Small Business Loan
Axis Bank does not publish one universal rate for every small business borrower. Pricing changes with the facility, business profile, loan amount, financial history and security offered. Here is the latest data:
| Product | Minimum ROI | Maximum ROI | Mean ROI |
|---|---|---|---|
| Business Loans | 9.50% p.a. | 25.25% p.a. | 18.93% p.a. |
| WC Secured Term Loan | 7.50% p.a. | 10.65% p.a. | 8.53% p.a. |
| WC Secured | 7.50% p.a. | 13.65% p.a. | 8.79% p.a. |
| WC Unsecured | 7.50% p.a. | 20.50% p.a. | 17.14% p.a. |
| DODSS | 7.50% p.a. | 9.75% p.a. | 8.55% p.a. |
Also Read: Axis Bank Loan for Self Employed
Features and Benefits of Axis Bank Small Business Loan
- Collateral-free loans up to ₹75 lakh: Eligible businesses can borrow without pledging property or another asset.
- Tenure up to 60 months: Standard business loans offer repayment from 6 to 60 months.
- 24×7 digital access: Eligible MSMEs can apply through Axis Bank’s digital channels.
- Multiple assessment routes: Axis Bank offers unsecured loans based on banking conduct, GST returns and ITRs.
- Working-capital finance: Cash, credit and overdraft facilities can support recurring operating expenses.
- Secured funding: Businesses with suitable security can access secured term-loan and working-capital products.
- Micro loans: Smaller enterprises can explore Biz Lite, Biz Power and Biz Power Plus.
- Flexible business use: Funds can support inventory, equipment, expansion, working capital and other business requirements.
- Balance-transfer options: Eligible borrowers can explore transferring existing business debt.
- MSME-focused banking: Axis Bank combines loans with current accounts, payments and cash-flow services.
Axis Bank Secured and Unsecured Business Loans
A business with property or another acceptable security does not have to use the same loan structure as an enterprise that wants completely collateral-free finance. Axis offers both routes under its small business banking portfolio.
| Comparison | Secured Business Finance | Unsecured Business Finance |
|---|---|---|
| Collateral | Required | Not required |
| Recent WC rate range | 7.50% to 13.65% p.a. | 7.50% to 20.50% p.a. |
| Recent mean WC rate | 8.79% p.a. | 17.14% p.a. |
| Processing fee | Up to 1.25% plus taxes for secured term loan | Up to 2.25% plus taxes |
| Standard unsecured limit | Product-specific | Up to ₹75 lakh |
| Standard unsecured tenure | Product-specific | 6 to 60 months |
| Assessment | Financials plus security | Cash flow and credit profile |
| Best suited for | Larger or lower-cost funding | Faster collateral-free funding |
Also Read: Small Business Loan
Axis Bank Small Business Loan vs Unsecured Business Loan
Axis Bank Small Business Banking is a wider financing category, while an unsecured business loan is one specific form of credit within that ecosystem. Here is a quick comparison:
| Comparison | Axis Small Business Finance | Axis Unsecured Business Loan |
|---|---|---|
| Product scope | Multiple business facilities | Collateral-free term loan |
| Collateral | Depends on product | Not required |
| Loan type | Term loan, OD, CC and microloan | Term business loan |
| Unsecured limit | Varies by product | Up to ₹75 lakh |
| Unsecured tenure | Varies by product | 6 to 60 months |
| Processing fee | Product-specific | Up to 2.25% plus taxes |
| Underwriting | Cash flow, financials or collateral | Banking, GST, ITR and credit profile |
| Best suited for | Broader MSME requirements | No-collateral borrowing |
A small enterprise that needs recurring working capital can prefer an overdraft or cash-credit facility. In contrast, a business that needs a defined amount for equipment, renovation or expansion can find a collateral-free term loan easier to budget through fixed EMIs.
Axis Bank Small Business Loan Fees and Charges
Business borrowing costs depend on the facility selected. Axis Bank’s current small business banking schedule publishes separate charges for secured term loans, unsecured loans, overdrafts and cash-credit facilities.
| Charge | Current Published Amount |
|---|---|
| Unsecured processing fee | Up to 2.25% plus taxes |
| Secured term-loan processing fee | Up to 1.25% plus taxes |
| Cash credit processing fee | Up to 1.25% plus taxes |
| Overdraft processing fee | Up to 1.25% plus taxes |
| Secured loan login fee | ₹5,000 plus taxes |
| Unsecured repayment return | ₹500 plus taxes per instance |
| Penal charge | 8% p.a. on overdue amount |
| Stamp duty | As per applicable state law |
| ROC filing | ₹1,200 plus taxes where applicable |
Keep in mind that the foreclosure charges differ by business-loan variant and tenure. For example, Axis Bank’s Unsecured Business Loan based on banking conduct currently lists foreclosure at 4% of principal outstanding up to 24 months, 3% from 25 to 36 months and 2% after 36 months, plus GST.
Also Read: Unsecured Business Loan
Documents Required for Axis Bank Small Business Loan
A small-business application needs enough information to establish who owns the enterprise, how it earns money and whether the proposed repayment fits its cash flow.
| Document Category | Requirement |
|---|---|
| KYC | Applicant and business KYC |
| Application form | Completed and signed form |
| PAN | PAN card or Form 60 |
| Business proof | Registration or accepted business record |
| Bank statements | Last 6 months |
| Financial documents | Relevant financial records |
| GST or ITR records | According to underwriting route |
| Ownership proof | Required for Microloans |
| Collateral documents | Required for secured products |
Businesses applying through GST, ITR or banking-conduct programmes should keep those records updated before submitting the application. Secured facilities also require documents relating to the asset offered as security.
How to Apply for Axis Bank Micro Loans
Axis Bank microloans are designed for smaller enterprises that need a comparatively modest amount and can demonstrate an established operating history. The product range includes Biz Lite, Biz Power and Biz Power Plus.
| Microloan | Maximum Amount | Maximum Tenure |
|---|---|---|
| Biz Lite | ₹5 lakh | 4 years |
| Biz Power | ₹10 lakh | 7 years |
| Biz Power Plus | ₹25 lakh | 15 years |
- Review the Axis Bank micro-loans page and choose the loan range that fits your requirements.
- Confirm that you are between 21 and 60 years at loan maturity.
- Check that the business has operated for at least 3 years in the same industry.
- Confirm at least 2 years of stability at the current business premises.
- Complete and sign the loan application form.
- Submit KYC, business proof and ownership records.
- Provide the last 6 months of bank statements.
- Submit collateral documents when applying for Biz Power or Biz Power Plus.
- Allow Axis Bank to complete its credit and security assessment.
- Review the sanctioned amount, rate and repayment terms before completing the loan agreement.
How to Check Loan Application Status
Once the application is submitted, Axis Bank provides a dedicated tracker for small business banking and MSME loans.
- Open the Axis Bank Application Tracker.
- Select the MSME-SBB option.
- Choose Track Now.
- Enter the application details requested by the tracker.
- Complete the required verification.
- Submit the information.
- Review the latest application status.
- Check whether Axis Bank has requested another business, financial or collateral document.
Axis Bank also provides a general loan-status page that uses the Application ID and date of birth for supported loan applications.
Also Read: MSME Loans | SME Loans
Factors Affecting Loan Approval
Axis Bank looks at both the enterprise and the proposed loan structure before giving final approval. These are the factors affecting loan approval:
- Business vintage: Axis Bank requires at least 3 years for its 24×7 business loan.
- Turnover: The 24×7 product requires annual turnover of at least ₹30 lakh.
- Banking conduct: Regular credits and responsible account usage strengthen the assessment.
- GST records: Accurate filings can support GST-based business-loan underwriting.
- ITRs: Filed returns help establish income and profitability.
- Cash flow: Operating cash should comfortably cover the proposed EMI or facility servicing.
- Existing debt: Heavy borrowing reduces capacity for another loan.
- Credit history: Past repayment behaviour influences both approval and pricing.
- Business stability: Longer operation in the same industry and premises strengthens micro-loan eligibility.
- Collateral quality: Secured products require acceptable security and complete ownership documents.
Axis Bank Small Business Loan Customer Care
Axis Bank provides phone, WhatsApp, online and branch support for small business banking customers. Here are the details:
| Support Channel | Contact Detail |
|---|---|
| Toll-free customer care | 1800 103 5577 |
| Phone banking | 1860 419 5555 |
| Phone banking | 1860 500 5555 |
| Additional toll-free support | 1800 209 5577 |
| WhatsApp Banking | Send ‘Hi’ to 7036165000 |
| Application tracking | Axis Bank MSME-SBB Tracker |
| Online support | Axis Bank Support Portal |
| Branch assistance | Nearest Axis Bank branch |
Also Read: Mudra Loan | Stand Up India Scheme
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