---
title: Merchant Cash Advance Loan | Indifi
canonical: https://www.indifi.com/merchant-cash-advance-loan
markdown_version: https://www.indifi.com/merchant-cash-advance-loan.md
description: Get a merchant cash advance from Indifi based on your POS and card transaction history. Up to INR 50 lakhs for retail, restaurant, and merchant businesses.
content_type: product_page
operator: Indifi Technologies Pvt. Ltd.
lending_entity_note: Loans facilitated through RBI-registered NBFC partners and through Indifi Capital Private Limited (RBI Cert. No. B-14.03389)
last_updated: 2026-06-01
---


# Merchant Cash Advance Loan - Indifi

> Indifi's Merchant Cash Advance (MCA) provides up to INR 50 lakhs to businesses based on their POS machine and card transaction history. Repayment happens automatically through a daily percentage of card swipe revenue.

## Key Features

- **Loan amount:** Up to INR 50 lakhs
- **Assessment basis:** POS/card transaction history (last 6-12 months)
- **Repayment:** Automatic daily deduction as % of card swipe revenue
- **Collateral:** Not required
- **Interest rate:** Starting at 1.5% per month
- **Processing fee:** Up to 4%

## What is a Merchant Cash Advance?

An MCA is an advance against future card and POS revenues. Unlike a term loan with fixed EMIs, MCA repayment is proportional to daily sales - when sales are higher, more is repaid; when sales dip, repayments reduce automatically. This makes it well-suited for businesses with seasonal or variable revenue.

## How MCA Repayment Works

Instead of fixed monthly EMIs, a percentage (holdback rate) of daily card transactions is automatically deducted and applied toward repayment. This continues until the advance plus fee is fully repaid.

## Who is MCA Suited For

- Retail stores with active POS machines
- Restaurants and cafes
- Hotels and hospitality businesses
- Any merchant with 6+ months of consistent card transaction history

## Eligibility for MCA

- Active POS machine usage for 6+ months
- Monthly card transaction volume of INR 1 lakh+
- GST-registered business
- Minimum 1 year of business operation

## Required Documents

- PAN and Aadhaar (entity and promoters)
- Bank statement (last 6 months)
- GST registration and returns (last 12 months)
- Business registration proof


## Frequently Asked Questions

**How is the advance amount calculated?**
Typically 1-1.5x of average monthly card turnover, subject to underwriting.

**What if card sales drop significantly?**
Repayment automatically reduces proportionally. However, the total amount owed does not change.

**Can I get an MCA if I don't have a POS machine?**
No. MCA is specifically for businesses with card/POS transaction history. For other businesses, consider a term loan or working capital loan.

## Related Products

- [Business Loan](https://www.indifi.com/business-loan)
- [MSME Loan](https://www.indifi.com/msme-loans)
- [Working Capital Loan](https://www.indifi.com/working-capital-loans-india)
- [Term Loan](https://www.indifi.com/term-business-loans-online-india)
- [EMI Calculator](https://www.indifi.com/business-loan/emi-calculator)


- [Merchant Cash Advance (POS)](https://www.indifi.com/merchant-advance-capital-against-pos-machine)
- [IndifiPay](https://www.indifi.com/indifipay)

## About Indifi

Indifi Technologies Pvt. Ltd. is India's digital MSME lending platform. Indifi Capital Pvt. Ltd. (RBI Cert. No. B-14.03389) is its in-house NBFC. 100,000+ loans disbursed across 400+ cities.

**Registered office:** Plot-19, Ground Floor, Block C, Sewa Tower, Sector-18, Phase-4, Udyog Vihar, Gurugram, Haryana-122015, India

## Disclaimer

Loan approval is subject to eligibility assessment and Indifi's underwriting policies. Rates and fees are indicative and may vary.