Axis Bank has unveiled its Digital Merchant Cash Advance Loans, a new offering aimed at empowering micro, small, and medium enterprises (MSMEs) with quick and flexible access to working capital. The service provides unsecured loans between ₹2 lakh and ₹20 lakh, designed especially for small merchants, including retail shop owners, to support their day-to-day operations.
Unlike traditional lending models that rely heavily on financial documents and historical statements, Axis Bank’s solution uses cash-flow intelligence and digital data points to assess creditworthiness. This fully digital evaluation process ensures faster approvals and greater accessibility for businesses that often struggle with conventional loan requirements.
A key feature of the product is its Everyday Instalment (EDI) repayment model, which links repayments directly to a merchant’s daily sales. Instead of large monthly instalments, merchants repay through small, manageable amounts collected daily. This structure provides flexibility, reduces financial stress, and allows businesses to maintain stability while servicing the loan.
Vijay Shetty, President and Head of the Commercial Banking Group at Axis Bank, highlighted the innovation behind the product: “Digital Merchant Cash Advance Loans bring instant credit facility and current accounts together into one seamless, digital solution, supported by flexible daily repayments aligned to merchants’ business needs.” He further added: “By leveraging cash-flow-based underwriting, we aim to make timely funding more accessible for MSMEs.”
The launch underscores Axis Bank’s commitment to strengthening India’s MSME sector by offering modern, data-driven financial solutions that align with the evolving needs of small businesses.
