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Features of Axis Bank Professional Loan Overdraft

  • Collateral-Free Facility: The Professional Loan OD is an unsecured facility, meaning professionals like doctors and CAs are not required to pledge assets such as property or fixed deposits as collateral. This reduces the risk of locking up personal or business assets and simplifies the loan application process.
  • Tailored for Professionals: Specifically designed for self-employed professionals, including doctors, chartered accountants, engineers, dentists, architects, cost accountants, company secretaries, and management consultants. This ensures the product aligns with the unique financial needs of these professions.
  • Flexible Repayment Options: Unlike traditional loans with fixed EMIs, the Professional Loan OD offers flexible repayment terms. Borrowers can repay the utilized amount at their discretion within the prescribed tenure, typically up to 36 months.
  • Interest Charged Only on Utilized Amount: Interest is calculated only on the amount withdrawn and for the duration it is utilized, not on the entire sanctioned limit. For example, if a professional has a ₹50 lakh OD limit but uses only ₹20 lakh, interest is charged solely on the ₹20 lakh.
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    • Loan Amount Range: The overdraft facility offers loan amounts ranging from ₹5 lakh to ₹50 lakh, depending on the applicant's eligibility, banking conduct, and financial profile.
    • Quick and Paperless Process: The application process is completely paperless for existing Axis Bank customers, with instant disbursal upon approval. Professionals can apply through Axis Mobile or Axis Internet Banking, ensuring a seamless and hassle-free experience.
    • Instant Access to Funds: Once approved, professionals can access funds 24x7 through digital channels, making it ideal for urgent financial needs such as medical equipment purchases, business expansion, or managing cash flow shortages.
    • Competitive Interest Rates: Interest rates are linked to the Repo Rate and reset every three months or as per bank policy, ensuring transparency. The exact rate depends on the applicant's business profile, financial records, loan amount, and tenure.
    • Auto-Renewal Facility: For select customers, Axis Bank offers an auto-renewal option for the overdraft facility, ensuring uninterrupted access to funds without the need to reapply annually.
    • Dropline Overdraft Mechanism: The Unsecured Dropline OD is a unique feature tailored for professionals. In the first year, it operates as a standard overdraft, allowing full access to the sanctioned limit. From the second year, the limit reduces monthly in equal portions, encouraging gradual repayment while maintaining flexibility.
    • No Annual Review Charges: Unlike some overdraft facilities, Axis Bank does not charge annual review fees for the Professional Loan OD. However, processing fees are levied for renewals, typically 0.50% of the drawing power or ₹5,000 (whichever is lower), plus applicable GST.
    • Digital Accessibility: Professionals can manage their overdraft account through Axis Mobile or Axis Internet Banking, enabling 24x7 fund transfers, balance checks, and repayments.
    • Customized for MSMEs: The facility is part of Axis Bank's Small Business Banking program, catering to Micro, Small, and Medium Enterprises (MSMEs) with a turnover of up to ₹30 crore.
    • Purpose of the Loan: The overdraft can be used for various professional needs including working capital requirements, business expansion, purchasing equipment, managing cash flow fluctuations, or funding general business purposes.
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Benefits of Axis Bank Professional Loan Overdraft

  • Collateral-Free Funding: The Professional Loan OD is an unsecured facility, meaning no collateral such as property, fixed deposits, or other assets is required. This eliminates the risk of pledging personal or business assets, making it ideal for professionals who may not have significant collateral but have a strong financial profile.
  • Flexible Fund Utilization: Professionals can use the overdraft for a variety of purposes, including working capital needs, business expansion, equipment purchase, and cash flow management. The flexibility ensures professionals can address diverse financial needs without restrictions.
  • Interest Charged Only on Utilized Amount: Interest is calculated only on the amount withdrawn and for the duration it is used, not on the entire sanctioned limit. For example, if a ₹50 lakh OD is sanctioned but only ₹10 lakh is used, interest applies only to the ₹10 lakh.
    • Flexible Repayment Structure: Unlike traditional loans with fixed EMIs, the Professional Loan OD offers no mandatory repayment schedule.
    • Quick and Paperless Process: The application process is completely paperless for existing Axis Bank customers, with instant disbursal upon approval.
    • High Loan Limits: The OD facility offers loan amounts ranging from ₹5 lakh to ₹50 lakh, depending on eligibility, income, and banking conduct.
    • 24x7 Access to Funds: Once approved, professionals can withdraw funds anytime, anywhere through digital channels (Axis Mobile, Internet Banking), chequebooks, or ATM cards linked to the OD account.
    • Competitive Interest Rates: Interest rates are linked to the Repo Rate, ensuring transparency and periodic adjustments. Rates are competitive for unsecured facilities, based on the applicant's financial profile and loan amount.
    • Auto-Renewal Option: For eligible customers, the OD facility offers auto-renewal, eliminating the need to reapply annually. This ensures uninterrupted access to funds, saving time and effort.
    • No Annual Review Charges: Axis Bank does not levy annual review fees for the Professional Loan OD, reducing the overall cost of maintaining the facility.
    • Tailored for Professionals: Designed specifically for self-employed professionals, the OD addresses their unique financial needs, such as irregular cash flows or high-cost equipment purchases.
    • Supports Business Growth: The OD empowers professionals to seize growth opportunities, such as expanding a clinic, upgrading technology, or hiring staff, without liquidity constraints.
    • Digital Account Management: Professionals can manage their OD account seamlessly through Axis Mobile or Axis Internet Banking, enabling real-time monitoring, fund transfers, and repayments.
    • Minimal Documentation: For pre-qualified customers, the OD requires minimal documentation, often just KYC and banking details. This reduces the administrative burden and speeds up the approval process.
    • Cost-Effective for Short-Term Needs: The OD is ideal for short-term or cyclical financial requirements, as interest is charged only on the utilized amount and duration.
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How to Apply for Axis Bank Professional Loan OD

  • 1. Online Application (For Existing Axis Bank Customers)
    • Log in to Axis Mobile App or Axis Internet Banking
    • Navigate to Loans > Business Loan > Quick OD
    • Check for Pre-Approved Offers > 24x7 Quick OD
    • Verify your details and authenticate with OTP
    • Accept terms digitally for instant disbursal
  • 2. Offline Application (Branch Visit or Phone Banking)
    • Visit the nearest Axis Bank branch
    • Consult a Relationship Manager
    • Fill out the loan application form
    • Submit required documents (identity proof, address proof, income proof, professional license)
    • Wait for verification and approval (1-7 working days)
  • 3. Eligibility Check
    • The system automatically assesses eligibility based on banking conduct, credit score, and financial profile
    • Pre-approved customers may see the sanctioned amount and terms immediately
  • 4. Disbursal Process
    • For pre-qualified customers: Instant disbursal in as little as 3 minutes
    • For new applicants: Funds credited after document verification (1-7 days)
    • Access funds via Axis Mobile, Internet Banking, chequebook, or ATM card

Eligibility Criteria for Axis Bank Professional Loan OD

  • 1. Professional Status
    • Must be a self-employed professional (doctors, CAs, engineers, architects, etc.)
    • Valid professional qualification or registration required (e.g., medical council registration for doctors)
  • 2. Professional Experience
    • Minimum 2-3 years in the current profession
    • Longer experience may qualify for higher limits
  • 3. Age Criteria
    • Applicant must be at least 21 years old
    • Maximum age of 70 years at the end of loan tenure
  • 4. Income Requirements
    • Individuals: Minimum annual income of ₹2.5 lakh as per ITR
    • Businesses: Minimum annual business income of ₹30 lakh
    • Non-individuals: Minimum cash profit of ₹3 lakh for last 2 years
  • 5. Credit Score and History
    • Credit score above 750 preferred for better approval chances
    • Clean repayment history with no defaults on previous loans or credit cards
  • 6. Banking Conduct
    • Healthy transaction history with no frequent defaults
    • Existing Axis Bank customers may receive pre-approved offers
  • 7. Business Registration
    • Valid professional license or registration
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Documents Required for Axis Bank Professional Loan OD

  • 1. Identity Proof (Any one, as per KYC norms)
    PAN Card (mandatory for financial transactions).
    Aadhaar Card.
    Passport.
    Voter ID.
    Driving License.
  • 2. Address Proof (Any one)
    Aadhaar Card.
    Utility Bills (electricity, water, or gas bill, not older than 3 months).
    Passport.
    Rental Agreement (registered).
    Property Tax Receipt.
  • 3. Income Proof
    Income Tax Returns (ITR) for the last 2 years, along with computation of income.
    Profit and Loss Statement and Balance Sheet (if applicable, certified by a Chartered Accountant).
    Bank statements (personal and/or business account) for the last 6 months.
  • 4. Professional/Business Proof
    Valid professional qualification certificate (e.g., MBBS degree for doctors, CA certificate for chartered accountants).
    Registration with relevant professional body (e.g., Medical Council of India, Institute of Chartered Accountants of India).
    GST Registration Certificate (if applicable).
  • 5. Banking Details
    6 months' bank statements for non-Axis Bank accounts (for new customers).
    Cancelled cheque or passbook copy of the account where the overdraft facility will be linked.
  • 6. Additional Documents for Partnerships/Companies
    Partnership Deed (for partnerships).
    Memorandum of Association and Articles of Association (for companies).

Factors Considered for Professional Loan OD

  • 1. Credit Score and History
    A credit score above 750 is preferred for better approval chances and favorable interest rates. A clean repayment history (no defaults on loans or credit cards) enhances eligibility.
  • 2. Professional Profile and Business Vintage
    The applicant's profession (e.g., doctor, CA, lawyer) and valid professional qualification/registration are critical. Minimum business/practice vintage of 2-3 years is required.
  • 3. Income and Financial Stability
    Stable and regular income from professional practice, verified through Income Tax Returns (ITR), bank statements, or profit/loss statements.
  • 4. Banking Relationship with Axis
    Existing Axis Bank customers with active accounts and good transaction history are more likely to receive pre-approved offers.
  • 5. Debt-to-Income Ratio
    The bank assesses existing liabilities against income. A lower debt-to-income ratio improves approval chances.
  • 6. Documentation Quality
    Complete and accurate documentation ensures smooth verification. Inconsistencies or missing documents can delay or derail the application.
  • 7. Collateral (if applicable)
    The Professional Loan OD is typically unsecured, but opting for a secured overdraft can increase the limit and lower interest rates.
  • 8. Interest Rate Structure
    Interest is calculated daily and billed monthly, based on the utilized amount. Rates are linked to Repo Rate and vary based on credit profile.
  • 9. Loan Amount and Usage
    The overdraft limit depends on income, creditworthiness, and professional needs. Funds must be used for valid business or professional purposes.

Frequently Asked Questions (FAQs)

1. What is the Axis Bank Professional Loan Overdraft (OD)?
The Professional Loan OD is a flexible, collateral-free overdraft facility designed for self-employed professionals (e.g., doctors, CAs, engineers, architects) to meet working capital, business expansion, or urgent financial needs. It allows professionals to withdraw funds up to a sanctioned limit, with interest charged only on the utilized amount.
2. Who is eligible for the Professional Loan OD?
Eligible applicants include self-employed professionals such as doctors, chartered accountants, engineers, architects, dentists, cost accountants, company secretaries, and management consultants. Applicants must be at least 21 years old with minimum 2-3 years of professional experience, have a minimum annual income of ₹2.5 lakh (individuals) or ₹30 lakh (businesses), and maintain a good credit score (preferably 750+).
3. What is the maximum overdraft limit available?
The OD limit ranges from ₹5 lakh to ₹50 lakh, depending on the applicant's income, credit profile, and banking conduct. The 24x7 Quick OD variant typically offers limits between ₹5 lakh and ₹15 lakh for instant disbursal to pre-qualified customers.
4. What documents are required to apply?
Common documents include Identity Proof (PAN Card, Aadhaar), Address Proof (utility bills, passport), Income Proof (ITR for 2 years, 6 months' bank statements), Professional Proof (professional license, GST registration), and Business Registration documents (for partnerships/companies). Pre-approved customers may need minimal or no documentation.
5. How can I apply for the Professional Loan OD?
You can apply through two methods:
Online (for existing Axis Bank customers): Log in to Axis Mobile or Axis Internet Banking, navigate to Loans > Business Loan > Quick OD, complete the application with OTP verification.
Offline: Visit an Axis Bank branch or call 1860 419 5555 / 1860 500 5555, submit the application form and required documents.
6. Is collateral required for the Professional Loan OD?
No, the Professional Loan OD is an unsecured facility, meaning no collateral (e.g., property, fixed deposits) is required. Approval is based on income, credit score, professional experience, and banking conduct.
7. How is the interest calculated?
Interest is charged only on the amount utilized and for the duration it is used, not on the entire sanctioned limit. The interest rate is linked to the Repo Rate and reset every three months or as per bank policy. Interest is calculated daily and debited monthly.
8. Are there fixed EMIs for repayment?
No, the Professional Loan OD has no fixed EMIs. You can repay the utilized amount at your convenience within the tenure, but interest accrues on the outstanding balance until repaid.
9. What are the fees associated with the Professional Loan OD?
Common fees include:
- Processing Fees: ₹5,000 for facilities below ₹10 lakh; ₹15,000 for facilities above ₹10 lakh (plus GST).
- Renewal Fees: 0.50% of the drawing power or ₹5,000 (whichever is lower, plus GST) for non-auto-renewal cases.
- No Annual Review Charges.
10. How long is the overdraft facility valid?
The facility is valid for 12 months, with an option for renewal (auto-renewal for eligible customers). The Dropline OD variant has a tenure of up to 36 months, with the limit reducing monthly from the second year onward.
11. Can I use the overdraft for any purpose?
The OD can be used for professional or business needs like working capital, equipment purchase, or office expansion. Prohibited uses include repayment of other loans or speculative investments.
12. What happens if I don't repay the overdraft amount?
Interest will continue to accrue on the outstanding balance. Non-repayment can negatively impact your credit score and lead to recovery actions by the bank.
13. Can I increase my overdraft limit?
Yes, you can request a limit increase based on improved income, credit score, or business performance. Contact Axis Bank or visit a branch to submit a request.
14. What if I'm not an Axis Bank customer?
Non-customers can apply by opening a current or savings account with Axis Bank. They must provide 6 months' bank statements from their current bank and meet eligibility criteria.

List of Axis Bank Overdraft Facilities

  • Axis Bank Unsecured Dropline Overdraft
  • Axis Bank 24x7 Quick Overdraft
  • Axis Bank MSME Collateral-Free Dropline Overdraft
  • Axis Bank Overdraft Against Property
  • Axis Bank Power OD
  • Axis Bank Cash Credit (CC) Facility
  • Axis Bank GST-Based Overdraft
  • Axis Bank Overdraft Against Fixed Deposit
  • Axis Bank MPower Overdraft
  • Axis Bank LCBN Power Overdraft