Axis Bank Unsecured Business Loan

If you are thinking about establishing a business in India, you may be wondering if you can apply for an Axis Bank Unsecured Business Loan. This loan carries various benefits, but there are some requirements that you need to meet. This article will talk about the CIBIL score, proof of business establishment, eligibility criteria, and more. Hopefully, you’ll find this information helpful.

CIBIL score

Among the major factors influencing the credit score of a bank, the financial strength of Axis Bank is also important. A VR represents moderate financial strength, and a lower score is not an indication of a risky bank. It is, however, more favorable than a low score if the bank is in good financial condition. For this reason, the credit score of Axis Bank is ‘bb-‘.

A CIBIL score is a credit worthiness rating that banks use to determine the risk level of an individual or business. For instance, an existing business’s score will be assessed based on its revenue pattern and years of operation. A company’s credit worthiness is also evaluated using a tax ID number and a legally incorporated name. In any case, a business with collateral can reduce the risk to the bank and facilitate an easy loan processing. As long as the business plan is strong, the bank is legally required to consider the credit worthiness of a business.

Proof of business establishment

Axis Bank Unsecured Business Loan is a credit line for manufacturing and service enterprises. The borrower must be a resident of India, aged 21 to 65 years, and run a business with an annual turnover of Rs. 30 lakhs or more. Businesses can be private or non-agricultural. The bank will approve the loan if you can show proof of business establishment and provide a loan agreement.

You will have to provide address proof and other necessary documents along with your KYC documents. Address proof can be a telephone bill, PAN card, electricity bill, lease agreement, or trade license certificate. Business ownership proof varies depending on the type of applicant. Sole proprietors and self-employed individuals are required to provide their PAN card, certificate of incorporation, or registration document. A few other documents you will need are payment receipts for municipal tax and business tax, and other miscellaneous business documents.

Part payment charges

Axis Bank offers business loans to both individuals and businesses. For this type of loan, part payments are allowed. However, the lender will charge part payment charges of up to 2% of the principal amount, excluding any applicable taxes. In addition, Axis Bank levies foreclosure charges on business loans. These charges vary, depending on the period of foreclosure. The amount charged will depend on the amount of debt owed and the current credit score of the borrower.

The Axis Bank business loan can range from Rs. 50 thousand to Rs. 15 lakhs. The amount of repayment depends on the amount of money lent, credit score, turnover, profit, and loan period. Part payment charges for Axis Bank Unsecured Business Loan are calculated on a cost versus benefit basis. The lender may also require collateral for the loan, depending on the applicant’s income, credit history, and other factors.

Eligibility criteria

Axis Bank offers several funding services for importers and exporters. These services include discounting, opening, confirming, and advising Export Letters of Credit, as well as foreign exchange. For businesses in India, Axis Bank offers post-shipment credit based on the protocol of the issuing bank. Axis Bank is a good choice for business owners with a high credit score and a low debt-to-income ratio.

If you are applying for an Axis Bank Unsecured Business Loan, it is important to understand the eligibility criteria. The criteria vary for various categories. If you are an individual, you must have a CIBIL score of 750 or higher. For businesses that are not individuals, you must have been in business for at least two years and have a profitable turnover of Rs. 30,00,000. The time period in which you have operated the business must be at least three years. A business that operates solely from a home will need a residence for two years.