Axis Bank LTD - 11.00% for Banking Services - MSME & SME (OD/CC) Loan
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Last updated: 19 Sep 2025, 01:47 PM
Axis Bank MSME & SME Overdraft (OD)/Cash Credit (CC) Loan: Flexible Working Capital Solutions
Axis Bank Limited offers tailored Overdraft (OD) and Cash Credit (CC) facilities under its MSME Samriddhi Loans and SME-specific products, designed for Micro, Small, and Medium Enterprises (MSMEs/SMEs) to meet short-term working capital needs. These products provide a revolving credit line, allowing businesses to withdraw funds as required up to a sanctioned limit, with interest charged only on the utilized amount—ideal for managing operational expenses like inventory, salaries, or seasonal fluctuations.
In-Depth Details
Key Highlights
- Products Offered:
- MSME Samriddhi Lite: A streamlined CC/OD facility for quick access to working capital, non-fund-based limits, and capital expenditure.
- Cash Credit & Overdraft (SME Plus/Quick OD): Collateral-backed or collateral-free options under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises), supporting businesses with turnover up to ₹250 crore; includes merchant finance and power OD for specialized sectors.
- Loan Amount: ₹10 lakh to ₹5 crore, based on business turnover, financials, and collateral; up to ₹50 crore for larger SMEs.
- Tenure: Revolving (up to 3-5 years, renewable annually); no fixed repayment schedule—repay as per cash flow.
- Interest Rates (as of September 2025): Linked to Repo Rate + spread; starting from 11% p.a., with a ceiling of 18% p.a. (competitive based on business profile, credit score, and tenure). Seniors or priority sectors may get concessions.
- Eligibility Criteria:
- Business vintage: Minimum 1-3 years.
- Annual turnover: ₹50 lakh to ₹250 crore (varies by scheme).
- Credit score: CIBIL 700+ preferred; viable financials with positive cash flow.
- Sectors: Manufacturing, trading, services (excluding speculative activities).
- Collateral: Optional (collateral-free up to ₹2 crore under CGTMSE); accepts property, fixed deposits, or liquid assets.
- Features & Benefits:
- Interest only on drawn amount for cost efficiency.
- Flexible drawdown via cheque, ECS, or online.
- Quick approval (within 2 working days post-document submission).
- Digital application and monitoring via Axis Bank app/portal.
- Government-backed guarantees for reduced risk; minimal documentation for eligible MSMEs.
- Additional perks: Overdraft against securities, forex support, and integration with trade finance.
- Required Documents:
- KYC (Aadhaar, PAN, address proof).
- Business proofs: Udyam Registration, GST returns (last 2 years), ITR/balance sheets.
- Financials: Bank statements (6-12 months), projected cash flows.
- Collateral docs (if applicable): Property papers or FD receipts
