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 facility offers unsecured loans from ₹2 lakh to ₹20 lakh, making it a first-of-its-kind offering in the Indian banking sector.
The loan is designed especially for small merchants and retail businesses that face daily cash-flow challenges and often struggle to get formal credit.
Contents
Unsecured Loans Based on Daily Business Cash Flow
One of the biggest advantages of this loan is that no collateral is required.
Axis Bank assesses loan eligibility by studying the daily cash-flow pattern of the business instead of asking for traditional guarantees or assets.
This approach makes it easier for small shops and merchants to access funds for everyday needs such as inventory, rent, or operational expenses.
Fully Digital Process with Quick Approval
The entire loan journey is 100% digital.
Merchants do not need to submit audited financial statements or go through lengthy paperwork.
Axis Bank uses cash-flow intelligence and alternative digital data to evaluate applications.
As a result:
Loan approval is given within minutes
Funds are disbursed within a few days
Integrated current account services help manage funds smoothly
This ensures a fast and hassle-free experience for business owners.
Flexible Daily Repayment Through EDI Model
To reduce financial pressure, Axis Bank has introduced an Everyday Instalment (EDI) system.
Instead of fixed monthly EMIs:
Repayments are made in small daily amounts
The instalment size adjusts based on daily sales
Businesses avoid sudden strain on working capital
This flexible structure allows merchants to repay comfortably while keeping their business running smoothly.
Supporting MSME Growth Across India
According to Vijay Shetty, President and Head of Commercial Banking at Axis Bank, the loan combines instant credit, digital processing, and flexible repayments in one seamless system.
The cash-flow-based model helps extend credit to MSMEs that lack collateral or a long financial history.
Final Takeaway
Axis Bank’s Digital Merchant Cash Advance Loans aim to make funding faster, simpler, and more accessible for small businesses.
With unsecured loans, quick approvals, and daily repayment flexibility, this initiative can play a key role in strengthening MSMEs across India.
Interested merchants can visit the nearest Axis Bank branch or check the official Axis Bank website for more details.