Self-employed people can apply for easy-to-repay business loans from Axis Bank without any collateral requirement. While you choose whether to use the funds for the entire tenure or close them early, Axis Bank helps ease your immediate liquidity demands and ensure that your company has the funds it needs to expand. You can apply for the loan online, receive it, and repay it in convenient instalments.
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Features and Benefits of Axis Bank Business Loans
- Availability of business loans without any collateral.
- Doctors, engineers, and chartered accountants can apply for the loan to grow their business.
- Eligibility criteria are relaxed to give customers as much convenience as possible.
- Very little in terms of documentation and valuation.
- Flexibility in repayment tenure up to 60 months.
- Business loans up to Rs 75 lakh
- Ability to transfer balances
- Competitive interest rates
Axis Bank is third among India’s largest private-sector banks. The bank’s diverse clientele includes retail, major corporations, SMEs, and agricultural firms. Self-employed people can quickly repay business loans from Axis Bank with no collateral requirement and no paperwork.
While you choose whether to use the funds for the entire tenure or close them early, Axis Bank helps you meet your short-term liquidity demands and maintain the proper funding for your firm’s expansion. You can apply for the loan online, receive it, and repay it with convenient instalments.
Check out the Bank of Baroda Personal Loan.
- Business loans are available from Axis Bank without any collateral.
- Very few documentation
- Repayment terms are flexible and range from 12 to 60 months.
- Loan amount from Rs 50,000 to Rs 75 lakh
- Balance transfer availability
Axis Bank Business Loan Eligibility Criteria
1. Who is eligible for Axis Bank Business Loan?:
- Individuals carrying on a registered business
- Private Limited Companies
- Proprietorship Firms and Partnership Firms
- Unlisted Public Limited Companies
- Limited Liability Partnerships (LLP)
- Trusts and Societies associated with Educational Institutions and Hospitals.
2. Business Retro: The company should exist for at least three years.
3. Change in Ownership: The company should earn a revenue of at least ₹30 lakh annually.
4. Age of Applicants:
- When applying for the loan, the candidate should be at least 21.
- After the loan tenure, the maximum age is 65 years.
5. Stability of Residence and Offices:
- Eligible candidates should own a home or commercial property.
- If the applicant is living on rent, he should have lived in his current residence for at least 12 months (owning a home is not a requirement).
- The office should be stable for at least 24 months.
6. Income of candidates:
- For salaried people, an annual income of at least ₹2.5 lakh and Income Tax Returns (ITR) for the last two years are required.
- For non-individuals: An initial monetary award of ₹3 lakh, supported by ITR of the last two years.
Axis Bank Business Loan Fees & Charges
1. Processing Fee: Maximum 2% of the loan amount, plus applicable taxes.
2. Part Prepayment Charges: 2% of the prepayment amount, plus GST.
3. Foreclosure or Prepayment Charges:
- Within 24 months of the loan tenure: 4% of the outstanding amount, plus GST.
- Between 25 and 36 months of the loan tenure: 3% of the outstanding amount, plus GST.
- After 36 months of the loan tenure: 3% of the outstanding amount, plus GST.
4. Penal Interest: 2% on overdue instalments.
5. Cheque Bounce Charges: Rs 339 on bounced cheques, plus applicable taxes.
Factors Affecting Axis Bank Business Loan Interest Rate
Interest rates on business loans from Axis Bank are affected by several variables. The following points can help you get an Axis Bank business loan approved quickly.
Character of the enterprise
Businesses that are profitable and in good standing can get low-interest business loans with easy approval. However, companies that are blocklisted or have received poor feedback may have to pay a higher interest rate. Your loan application will either be rejected or approved, although at a higher interest rate.
Healthy Relationship
Having a positive rapport with the bank staff increases the chances of getting a loan approved to some extent. You also have the opportunity to switch and get competitive interest rates. To increase the chances of getting a loan approved at a lower interest rate, it is therefore advisable to maintain a positive relationship with the current bank.
CIBIL Rating
The primary determinant of interest rates and loan approval is the credit score, often called the CIBIL score. Lenders use the CIBIL score to check the applicant’s credit history and credibility. If the customer has a good credit rating, banks can offer business loans at affordable rates; otherwise, the interest rate will increase.
Annual Turnover
The primary determinant of the suggested interest rate for a business loan is the organisation’s annual turnover. A business that generates substantial income and has a high turnover rate conveys credibility and is thus approved for a loan at a lower interest rate. Companies with lower turnover may be approved, but the EMI amount will increase due to the rising interest rates.
Stability and expertise in business
More stable businesses are more likely to get their loans approved at affordable interest rates. The interest rate Axis Bank offers on business loans is determined by considering the total business experience. Business loans with low interest rates are usually given to people with a good business history and established firms. The loan application will be rejected immediately if the financial data is erroneous.
Repayment history
Both your credit score and general reputation are affected by your repayment history. So, to remove bad marks from your payment history, consistently pay your loans and related bills on time. Credibility increases with a strong payment history. This will benefit your chances of getting a loan approved and accessing affordable interest rates.
Documents Required for Axis Bank Business Loan
- KYC Documents
- PAN Card or Form 60
- Address Proof of the business and Residence Proof.
- Income Tax Returns for the last two years
- Duly filled Business Loan Application Form signed by the applicant.
- Financial documents to prove the stability of the business.
- Bank Account Statement (Last Six Months)
How is EMI calculated for a business loan from Axis Bank?
Using the EMI calculator, loan applicants can quickly determine the monthly instalment for a business loan sought from Axis Bank. The business loan EMI calculator is a valuable tool that lets you enter three values to calculate the monthly instalment – business loan amount, repayment period, and interest rate.
For example:
- Person A applied for a business loan of Rs 15 lakh.
- The interest rate for the business loan applicable is 9% p.a.
- The repayment period is four years.
Entering these numbers in the EMI calculator will yield a value of INR 47,700. The total interest component payable will be INR 2,17,186, and the total repayment amount (principal and interest) will be INR 17,17,186.
| Year | Opening Balance (INR) | Amount Paid (INR) (Monthly Instalment * 12) | Interest Component (INR) to be Paid During the Year | Principal Component (INR) During the Year | Closing Balance (INR) |
| 1 | 15,00,000 | 2,86,198 | 63,358 | 2,22,839 | 12,77,161 |
| 2 | 12,77,161 | 5,72,395 | 95,595 | 4,76,800 | 8,00,360 |
| 3 | 8,00,360 | 5,72,395 | 50,868 | 5,21,528 | 2,78,833 |
| 4 | 2,78,833 | 2,86,198 | 7,365 | 2,78,833 | 0 |
