Axis Bank has introduced a new digital lending solution called Digital Merchant Cash Advance Loans, aimed at supporting micro and small enterprises (MSMEs) across India. Announced on December 23, this service offers unsecured loans ranging from ₹2 lakhs to ₹20 lakhs, making it the first product of its kind in the Indian banking industry. The initiative focuses on the daily cash-flow patterns of small businesses, especially merchants such as retail shops, helping them access quick financial support for everyday operational needs.
By removing the requirement for collateral, Axis Bank aims to make credit more accessible to businesses that traditionally struggle to secure formal loans.
Axis Bank Introduces Cash-Flow–Based Loans with Everyday Instalment System
A standout feature of the offering is its fully digital underwriting process. Instead of relying on conventional financial documents, such as audited statements or lengthy paperwork, Axis Bank uses cash-flow intelligence and alternative digital data to evaluate loan eligibility. This approach allows merchants to receive instant credit decisions within minutes of submitting their application. Once approved, the loan amount is disbursed within a few days. The bank also ensures a smooth experience by providing integrated current account services to streamline fund usage and repayment.
The repayment structure is specifically designed to ease financial pressure on small merchants. Rather than fixed monthly EMIs, Axis Bank has introduced an Everyday Instalment (EDI) model, where repayments are collected in small daily amounts. These repayments adjust according to the merchant’s actual daily sales, offering far more flexibility and reducing the risk of cash-flow strain. This ensures that businesses can continue functioning without having their working capital disrupted by large repayment obligations.
Axis Bank Strengthens MSME Growth with Digital Merchant Cash Advance Loans
Vijay Shetty, President and Head of the Commercial Banking Group at Axis Bank, highlighted the importance of this model, stating that the Digital Merchant Cash Advance Loans combine instant credit with flexible daily repayments in a seamless, end-to-end digital journey. He emphasized that cash-flow-based underwriting enables the bank to extend timely funding to a wider segment of MSMEs, including those without collateral or traditional financial history.
Axis Bank’s new offering is expected to significantly benefit small businesses that often face hurdles in obtaining formal credit. By prioritizing speed, accessibility, and flexibility, the bank aims to empower MSMEs across India and strengthen digital, data-driven lending practices. Interested merchants can visit their nearest Axis Bank branch or the bank’s official website for further details.
Summary:
Axis Bank has launched Digital Merchant Cash Advance Loans for MSMEs, offering unsecured credit of ₹2–20 lakh through a fully digital, cash-flow–based underwriting system. With instant approval, quick disbursal, and flexible daily repayments via the EDI model, the initiative aims to improve credit access and support small businesses nationwide.
