An SME loan is business financing designed to support the working capital, expansion, and investment needs of small and medium enterprises. Instead of offering one standard Axis Bank SME loan, Axis Bank provides a group of SME financial programs for different requirements. Businesses can explore working capital finance, term loans, property-backed overdrafts, bill discounting, and collateral-free facilities.
Depending on the program, Axis SME finance can support anything from a short-term liquidity gap to a larger expansion plan. The suitable facility depends on turnover, business activity, funding purpose, financial strength, and the security available.
Axis Bank SME Loan Overview
Axis Bank’s SME platform covers several financing structures rather than one fixed small enterprise loan or medium enterprise loan. Here is an overview of the main options currently listed by the bank:
| SME Option | Key Details |
|---|---|
| SME Plus |
|
| MPower |
|
| Power OD |
|
| LCBN Power |
|
| Zero Collateral Loans | CGTMSE-supported working capital, trade, and term finance without conventional collateral for eligible MSMEs |
| 24×7 Quick OD | Digital collateral-free overdraft of ₹1 lakh to ₹25 lakh for eligible business owners |
| MSME-SBB segment | Axis Bank’s SME page currently identifies this segment for businesses with turnover up to ₹250 crore |
Also Read: SME Loan
Eligibility for Axis Bank SME Loan
There is no single eligibility rule for every Axis business loan for SME customers because each program serves a different type of funding requirement. Axis Bank checks the business category, turnover, financial position, credit profile, and security where applicable. These are the basic eligibility criteria for Axis Bank:
| Programme or Factor | Published Requirement |
|---|---|
| SME Plus | Available to traders, wholesalers, manufacturers, service businesses, and agri-based industries with turnover up to ₹75 crore |
| MPower | Available to eligible manufacturing, trading, and service businesses with turnover up to ₹100 crore |
| Power OD | Available to eligible manufacturing, trade, and service businesses with turnover up to ₹100 crore; arthiyas and commission agents are excluded |
| LCBN Power | Available to eligible manufacturing, trade, and service businesses with turnover up to ₹100 crore |
| Zero Collateral Loan | Turnover and classification should fall within applicable MSME guidelines |
| 24×7 Quick OD | Resident individuals with business registration and sole proprietorships can qualify based on banking conduct and credit checks |
Under Axis Bank’s current MSME policy, a small enterprise can have an investment in a plant and machinery or equipment up to ₹25 crore and a turnover up to ₹100 crore. A medium enterprise can have investment up to ₹125 crore and turnover up to ₹500 crore.
Types of SME Loan at Axis Bank
Axis Bank offers different SME financing programs for working capital, expansion, property-backed borrowing, and trade requirements. The limits and facility structure vary with the product.
SME Plus
SME Plus combines working capital, trade finance, and term loans for eligible businesses.
- Maximum limit: Up to ₹10 crore
- Business turnover: Up to ₹75 crore
- Facilities: Working capital, trade products, and term loans
- Collateral: Residential, commercial, and industrial property accepted
MPower
MPower provides property-backed finance for general business needs, expansion, and liquidity requirements.
- Maximum limit: Up to ₹10 crore
- Business turnover: Up to ₹100 crore
- Facilities: Loan against property, OD against property, OD, and property purchase
- Collateral: Residential, commercial, and industrial property accepted
Power OD
Power OD provides working capital through an overdraft facility that is not linked to drawing power.
- Maximum limit: Up to ₹3 crore
- Business turnover: Up to ₹100 crore
- Facilities: Overdraft, Bank Guarantee, Letter of Credit, and Loan Equivalent Risk
- Collateral: Eligible property and fixed deposits
LCBN Power
LCBN Power provides liquidity by discounting eligible bills backed by letters of credit.
- Maximum limit: Up to ₹50 crore
- Business turnover: Up to ₹100 crore
- Maximum bill tenor: 180 days
- Collateral: No collateral required
Zero Collateral Loans under CGTMSE
This facility supports eligible MSMEs that need working capital, trade, or term finance without conventional collateral.
- CGTMSE cover: Up to ₹10 crore
- Loan amount: No common maximum stated on the current product page
- Facilities: Trade, working capital, and term loans
- Collateral: Applicable only in hybrid cases
24×7 Quick OD
24×7 Quick OD is a digital, collateral-free working capital facility for eligible business owners.
- Limit: ₹1 lakh to ₹25 lakh
- Interest rate: Starts from 13.50% p.a.
- Quick OD tenure: 12 months
- Dropline OD tenure: 12 to 48 months
- Interest calculation: Charged on the utilised amount
- Collateral: Not required
Also Read: Loan Against Property
Interest Rate of Axis Bank SME Loan
Axis Bank does not publish one common SME loan interest rate because pricing changes with the type of facility, credit risk, collateral, and customer relationship. Its latest SBB disclosure shows the following rates for loans disbursed from April to June 2026.
| Product Category | 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. |
For 24×7 Quick OD, Axis Bank currently advertises rates starting from 13.50% p.a. Interest applies to the utilized amount. The final rate for any Axis MSME loan can change according to the business profile and sanction terms.
Features and Benefits of Axis Bank SME Loan
The wider Axis SME finance range allows a business to choose funding according to how and when it needs the money.
- Multiple financing structures: Businesses can choose term loans, overdrafts, working capital finance, and trade facilities.
- Limits for different business sizes: Products range from smaller digital overdrafts to facilities running into several crores.
- Short and long-term funding: Finance can support daily liquidity as well as expansion and capital expenditure.
- Collateral flexibility: SME Plus, MPower, and Power OD accept eligible property or other stated security.
- Collateral-free choices: CGTMSE-supported finance and 24×7 Quick OD can help eligible borrowers access funding without pledging property.
- Trade support: SME Plus and LCBN Power can address trade and receivables-related requirements.
- Different business segments: Axis Bank caters to eligible manufacturers, traders, and service enterprises across its SME programs.
Axis Bank SME Loan Fees and Charges
Axis Bank does not directly give out any universal processing fee that applies to every SME product. Pricing and transaction charges depend on the facility, credit rating, collateral, and other assessment factors. The bank does, however, publish several common service charges for SME borrowing accounts.
| Service | Published Charge |
|---|---|
| Checkbook | The first 100 leaves free for a new borrowal account; ₹2 per leaf thereafter |
| Monthly statement by post | No charge |
| Statement by email | No charge |
| Ad hoc statement from branch | ₹100 per statement |
| Stop payment | ₹100 per instrument, subject to the published maximum per instruction |
| Cheque return at home branch | ₹500 per check |
| Signature verification | ₹100 |
| No Dues Certificate | ₹150 per certificate |
Product-level fees can differ. For example, Axis Bank currently lists a processing fee of 2% of the sanctioned amount plus applicable taxes for 24×7 Quick OD. Applicants should check the product-specific sanction terms before accepting any facility.
Also Read: Axis Bank Business Loan
Documents Required for Axis Bank SME Loan
The document list changes with the program and size of the facility. SME Plus provides one of the most detailed published document lists, while products such as LCBN Power and Zero Collateral Loans can require a smaller set.
| Document Category | Commonly Required Records |
|---|---|
| Business KYC | PAN, GST registration or certificate of incorporation, and applicable constitutional documents |
| Key-person KYC | PAN and accepted address proof of directors, shareholders, partners, or signatories |
| Financial statements | SME Plus can require 3 years of audited financials; requirements vary by product |
| Income tax records | ITR and Tax Audit Report where applicable |
| Bank statements | SME Plus requires the last 12 months for operative business accounts |
| GST returns | Last 12 months under the SME Plus document list |
| Projections | Signed projections and provisional financials where applicable |
| MSME proof | Udyam Registration Certificate, if available or required |
| Existing facilities | Latest sanction letter from the existing bank, where applicable |
| Collateral papers | Title deeds, property-tax receipts, approved plans, and other security documents for secured facilities |
How to Apply for Axis Bank SME Loan
The application process starts with identifying the facility that matches your business requirements. Axis Bank accepts SME applications through its digital channels as well as SME centers, loan centers, and branches. Here is a simple step you can follow:
- Identify whether the business needs working capital, term finance, an overdraft, bill discounting, or collateral-free funding.
- Compare SME Plus, MPower, Power OD, LCBN Power, zero-collateral loans, and eligible digital facilities.
- Check the turnover, business category, collateral, and financial requirements of the selected program.
- Collect the required KYC, financial, banking, GST, and security documents.
- Complete the applicable SME credit application online or through an Axis Bank SME Centre, Loan Centre, or branch.
- Submit any additional information requested during appraisal.
- Review the approved limit, rate, charges, collateral, and repayment conditions before accepting the sanction.
Also Read: MSME Loan | Mudra Loan
Factors Affecting Loan Approval
Axis Bank reviews the strength of the enterprise as well as the structure of the requested facility before taking a credit decision.
- Credit rating: The bank considers acceptable internal or external ratings.
- Cash flow: Healthy cash generation helps show that the enterprise can service the facility.
- Business viability: A sustainable business model supports the overall credit assessment.
- Past credit history: Previous borrowing and repayment behavior influence risk evaluation.
- Management: Professional management and leadership can strengthen the business profile.
- Track record: Axis Bank considers business continuity, integrity, and corporate governance.
- Future potential: Growth prospects and projected performance matter for expansion or term finance.
- Collateral: For secured facilities, the quality, ownership, and valuation of the asset influence the structure.
- End use: The bank reviews how the requested funds will support the business.
Axis Bank SME Loan vs Axis Bank MSME Loan
SME and MSME are closely related terms, so they should not be treated as two completely separate loan products. MSME is the wider regulatory classification covering micro, small, and medium enterprises. Axis Bank’s SME banking platform provides several financing programs to businesses that may fall within these MSME categories.
Here is a side-by-side comparison:
| Comparison | Axis Bank SME Finance | Axis Bank MSME Finance |
|---|---|---|
| Meaning | Financing programmes offered through Axis Bank’s SME banking platform | Credit provided to enterprises classified as micro, small, or medium under MSME norms |
| Businesses covered | Primarily eligible small and medium businesses, along with MSME units accepted under individual programmes | Micro, small, and medium enterprises that meet applicable investment and turnover criteria |
| Examples of facilities | SME Plus, MPower, Power OD, and LCBN Power | Working capital, term loans, non-fund facilities, retail business loans, and CGTMSE-supported finance |
| Collateral | Depends on the selected SME product | Can be secured or collateral-free according to the facility and applicable MSME rules |
| Assessment | Depends on the selected SME programme, turnover, and facility structure | Includes MSME classification, creditworthiness, cash flow, business profile, and facility requirements |
In practice, a business looking for an Axis MSME loan may use one of the same SME financing programs described above if it meets that program’s criteria.
Also Read: Axis Bank Instant Loan
Axis Bank SME Loan Customer Care
Axis Bank provides phone, WhatsApp, and in-person support for SME customers. Businesses can also approach the SME Centre or branch handling an existing credit application.
| Support Channel | Contact Detail |
|---|---|
| Toll-free customer care | 1800 103 5577 |
| Additional toll-free support listed on SME Plus | 1800 209 5577 |
| Phone Banking | 1860 419 5555 or 1860 500 5555 |
| WhatsApp Banking | Send “Hi” to 7036165000 |
| Application support | Axis Bank SME Centre, Loan Center, or branch handling the application |
| Application tracking | Track application status facility available through the Axis Bank SME page |
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