Name: SAHIL PAWAR Roll no: 73

EDE: Assignment- 6
Aim: Visit to Axis Bank Limited to enquire about various funding schemes
for small scale enterprises.

Theory:
Axis Bank Limited

Survey conducted on: date: 01-04-2023

Funding Schemes:
1) MSME (Micro and Small Enterprise) Samriddhi Loans: -
Features and Benefits:
1] Key features:
a) Quick Sanctions.
b) Minimal documentation.
c) Low rates and fees.
2] Flexible collateral
3] Rate of Interest:
For Loans on Repo Rate:
The competitive interest rate will be linked to Prevailing Repo Rate. Ceiling Rate
will be 18% Per annum. PF 0.75% + Applicable Taxes.
Repo Rate Reset Frequency – 3 months
For Loans on MCLR:
Ceiling rate will be 18% per annum. PF 0.75% + Applicable Taxes.
MCLR reset frequency – Monthly/ Quarterly/ Half Yearly/ Yearly
Eligibility:
o Applicant Age: 18 years - 75 years
o Business Vintage: Minimum 3 years with cash accruals for last 2
years
o Entities having CA Certified / Audited Balance Sheets (ABS)
o Constitution: Proprietorship/ Partnership/ Pvt. Ltd Companies/
Limited Companies/ LL
 Name: SAHIL PAWAR Roll no: 73

2) Small Scale Industry Loans:-

Axis Bank, by virtue of its understanding and experience in SME business,
is committed to provide timely, adequate and hassle free credit to the SMEs
across sectors. Bank has in its kitty a wide range of all-weather fast track and
customized products designed to offer credit facilities including Working
Capital, Term Loan, Trade Finance, Project Finance and Bill / Invoice
Discounting, etc. to manufacturing, trade and services sectors.
Our bouquet of fast-track products include:
A. FAST TRACKED PRODUCTS
1. SME Plus:
SME Plus is designed to cater to comprehensive credit requirement of SME
customers
engaged in manufacturing, services and trading activity.
Following are the key features of the product:
 The product offers Cash Credit, Bill discounting facility, Export credit
facility to meet
working capital requirement and term loan for purchase of fixed asset.
 NFB facilities like LC & BG
 Loan amount is offered up to Rs 10 crores
 Pre-approved term loan facility for unplanned capital expenditure
 Availability of adhoc facility
 Attractive rate of interest
2. Agri Power:
Agri Power is dedicated product which offers credit facilities to Food
Processing units,
Traders, Arthias & Commission agents.
Following are the key features of the product:
 The product offers Fund-based and Non-Fund Based Working Capital and
Term Loan
requirements, including Cash Credit / Overdraft / Rupee Export Credit/
Inland Bill Discounting
/ Letter of Credit / Bank Guarantee / Export Credit in Foreign Currency and
Term Loans
Loan amount is offered up to Rs 10 crores
 Attractive rate of interest offered
3. Business M-Power Overdraft/Term Loan:
The product offers OD and term loan facility for general business purposes.
Following are the key features:
• Loan amount offered is up to Rs 7.5 crores
 Name: SAHIL PAWAR Roll no: 73

• Loan is offered against Commercial, Residential and Industrial immovable

property as
collateral
• Attractive rate of interest
4. SME Mortgage Plus-Dropline Overdraft Facility:
This product offers drop-line overdraft facility against mortgage of
Residential, Commercial
and Industrial property.
Some of the key features of the product are:
 Loan is offered to all business units up to Rs 7.5 Crores
 It offers flexibility of both overdraft and term loan
 Loan can be used for general business expenses
 Customer can save interest cost by bringing in deposit into the account
B. CUSTOMISED PRODUCT SOLUTIONS
Axis Bank offers customised credit solutions to meet your financing needs in
the most
appropriate manner. The wide range of customised solutions ensures that
you get best suited
products for your business.
Our suite of services for SMEs includes:
• Working capital finance (CC / OD)
• Trade finance (LC / BG / Bill discounting)
• Export finance
• Lease rental discounting
• Term loans
• Construction finance
• Acquisition finance
• Project finance
C. SUPPLY CHAIN FINANCE
 Dealer Financing:
Funding dealers against supplies made by a Corporate.
 Vendor Financing:
Funding vendors against supplies made to a Corporate.
 Name: SAHIL PAWAR Roll no: 73

3) MSME Samriddhi Lite:-

Unique Selling Points:
 Minimal Documentation
 Faster Processing
 Min 1 year vintage with 1 full year of positive cash accruals
Limit: Min: INR 10.01 Lacs Max: INR 35.00 Lacs
Facilities: Overdraft & Cash Credit
Pricing & Security will be as per MSME Samriddhi Loans

Conclusion: Survey of Axis Bank Limited