Axis Bank has launched a new digital loan product called Digital Merchant Cash Advance Loans to support micro and small businesses across India.
Announced on December 23, this loan is designed mainly for small merchants such as retail shop owners who need quick funds for daily business expenses.
The bank is offering unsecured loans ranging from ₹2 lakh to ₹20 lakh, making it the first cash-flow–based lending product of its kind in the Indian banking sector.
No Collateral, Faster Access to Credit
One of the biggest advantages of this loan is that no collateral is required.
Many small businesses struggle to get loans because they cannot provide security or detailed financial records.
Axis Bank aims to remove this barrier and make formal credit easier to access.
The loan is based on a business’s daily cash flow, not on traditional balance sheets or audited statements.
Fully Digital Process with Quick Approval
The entire loan process is 100% digital.
Axis Bank uses alternative digital data and cash-flow analysis to check eligibility.
Merchants can:
Apply online
Get approval within minutes
Receive funds within a few days
The bank also provides integrated current account services to make spending and repayments smoother.
Flexible Daily Repayment System
Instead of fixed monthly EMIs, Axis Bank has introduced an Everyday Instalment (EDI) system.
Under this model:
Repayments are made in small daily amounts
Instalments adjust according to daily sales
Businesses avoid pressure on working capital
This helps merchants manage repayments without affecting their daily operations.
Boost for MSMEs and Small Merchants
Vijay Shetty, President and Head of Commercial Banking at Axis Bank, said the new loan combines instant credit with flexible repayment in a seamless digital journey.
He added that cash-flow–based lending allows the bank to support more MSMEs, even those without traditional financial histories.
How to Apply
Small business owners can get more information by:
Visiting the nearest Axis Bank branch
Checking details on the official Axis Bank website
In Short
Axis Bank’s Digital Merchant Cash Advance Loans offer unsecured funding of ₹2–20 lakh, quick approvals, and flexible daily repayments.
By focusing on cash flow and digital processes, the bank aims to improve credit access and support the growth of MSMEs across India.
