Axis Bank Launches Industry-First ‘Digital Merchant Cash Advance’ Loans for MSMEs..
varahi media.com online news,MUMBAI, December 24, 2025: Axis Bank, India’s leading private sector lender, has announced the launch of Digital Merchant Cash Advance (MCA) Loans, a pioneering cash-flow-based lending solution tailored for micro and small businesses. In a first for the industry, this fully digital product offers unsecured loans ranging from ₹2 lakh to ₹20 lakh, specifically targeting retail merchants and small-scale entrepreneurs.
varahi media.com online news,MUMBAI, December 24, 2025: Axis Bank, India’s leading private sector lender, has announced the launch of Digital Merchant Cash Advance (MCA) Loans, a pioneering cash-flow-based lending solution tailored for micro and small businesses. In a first for the industry, this fully digital product offers unsecured loans ranging from ₹2 lakh to ₹20 lakh, specifically targeting retail merchants and small-scale entrepreneurs.
Innovative ‘Everyday Instalment’ (EDI) Model
Unlike traditional loans that rely on heavy monthly EMIs, the Axis Bank MCA loan introduces an Everyday Instalment (EDI) model. This allows merchants to repay credit through daily deductions aligned with their actual daily sales, ensuring that working capital remains steady and repayment remains flexible.
Key Features of the Digital MCA:
Fully Digital Journey: From application to disbursement, the entire process is paperless and handled via digital platforms.
Alternative Underwriting: Loan eligibility is determined through cash-flow intelligence and data parameters rather than traditional financial statements or collateral.
Instant Decisions: Applicants receive credit decisions within minutes, with funds disbursed in just a few days.
Bundled Services: Customers are also provided with Axis Bank current account services to ensure a seamless business banking experience.
Empowering the MSME Ecosystem
Commenting on the launch, Vijay Shetty, President & Head – Commercial Banking Group, Axis Bank, said:
“Digital Merchant Cash Advance Loans combine instant credit facilities and current accounts into one seamless solution. By leveraging cash-flow-based underwriting, we aim to make timely funding more accessible for MSMEs. This launch is a significant step in advancing our data-driven lending and reinforcing our commitment to empower India’s MSMEs with simple, fast, and reliable credit.”
The launch is expected to bridge the credit gap for small businesses that often struggle to secure formal financing due to a lack of collateral or detailed financial history. Interested MSMEs can apply through the nearest Axis Bank branch or via the bank’s official website.
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