Kotak Mahindra offers business loan of up to Rs. 75 Lakhs for funding business expansion and day-to-day requirements at interest rate starting from 16% p.a. The loan can be repaid in EMIs within tenure of up to 48 months
On Kotak mahindra bank official website
Updated: 27-05-2024 12:40:45 PM
| Interest Rate | Starting at 16% p.a. |
| Minimum loan amount | Rs. 3 Lakhs |
| Maximum loan amount | Rs. 75 Lakhs |
| Repayment tenure | Up to 48 months |
| Processing fee | Up to 2% of loan amount + GST & other levies |
| Foreclosure charges | 5% – 6% of operating limit + GST & other levies |
| Age | 25 – 65 years |
| Minimum turnover | Rs. 40 Lakhs |
Kotak Mahindra offers the following types of business loans:
This business loan is available for all small, medium and large businesses for all business needs.
This business loan is for commercial vehicle, two or three wheelers, and construction equipment dealers.
It is a business loan against credit card receivables available as term loan and overdraft.
This business loan is for farmers and caters to their working capital needs for meeting the cost of cultivation, purchase of inputs, development of farm, and so on.
This loan is obtained against the property and can be used for any business as well as personal financial needs.
This loan can be used for purchase of new or old construction equipment, such as material handling equipment, earth moving equipment, road building equipment, and concrete equipment.
Under this loan you can avail funds for the purchase of new or used commercial vehicles, working capital finance, top-up on existing loans, and more.
These customised business loans are offered against property or any other asset to help you meet your requirements.
These customised business loans are offered against property or any other asset to help you meet your requirements.
This business loan can be obtained for purchasing new and old tractors, loader, rotavator, trailer, combined harvesters, dusters, sprayers, threshers, implementation for agricultural or commercial purpose, etc.
Following are the key features of Kotak Mahindra business loans:
You can easily calculate your Kotak Mahindra Business Loan EMI using the Business Loan EMI Calculator available on Kotak Mahindra Bank or our website.
To calculate EMI, you will have to enter the following parameters:
Here is an illustration:
In this case, you will have to pay the total interest amount of Rs. 3,60,333 on the borrowed loan. The total amount you have to pay back to the bank will be Rs. 13,60,333 and your monthly EMI would be Rs. 28,340.
Amortization table for the above illustration is given below:
| Year | Opening Balance | Principal to be Paid in a Year | Total Interest to be Paid in a Year | Total Amount to be Paid in a Year | Closing Balance |
|---|---|---|---|---|---|
| 1 | Rs. 10,00,000 | Rs. 1,93,894 | Rs. 1,46,189 | Rs. 3,40,083 | Rs. 8,06,106 |
| 2 | Rs. 8,06,106 | Rs. 2,27,297 | Rs. 1,12,787 | Rs. 3,40,083 | Rs. 5,78,809 |
| 3 | Rs. 5,78,809 | Rs. 2,66,453 | Rs. 73,630 | Rs. 3,40,083 | Rs. 3,12,355 |
| 4 | Rs. 3,12,355 | Rs. 3,12,355 | Rs. 27,728 | Rs. 3,40,083 | Rs. 0 |
Documents requirement may vary as per the type of business loan to be applied for. Following are the documents required for applying for Kotak Mahindra business loan:
Kotak Mahindra business loan eligibility criteria are mentioned below:
Customers can contact Kotak Mahindra Bank to air their grievances or submit feedback by using the following channels of communication.
| Type of charge | Amount |
| Processing fee | Up to 2% of the sanctioned amount |
| Documentation charges | Rs. 3,500 to Rs. 7,000 |
| Cheque dishonour | Rs. 750 per instance |
| Copy of any document | Rs. 500 per instance |
| Repayment mode/ Account swapping | Rs. 500 per instance |
| Duplicate NOC or No Dues Certificate | Rs. 500 per instance |
| Copy of CIBIL report | Rs. 50 per instance |
| Term Loan Specific Charges | |
| Prepayment charges | 6% within a lock-in period of 12 months & 5% otherwise |
| Penal interest | 3% p.m. on a compounded basis |
| Collection charges in case of default | 30% of cheque dishonour charges plus penal interest |
| Amortisation schedule or Account statement | Free once in a year & Rs. 250 per instance for subsequent requests |
| Overdraft Specific Charges | |
| Annual review charges for OD | 1.5% of renewal limit or Rs. 5,000 whichever is higher |
| Termination charges | 6% of operating limit within a lock-in period of 6 months 5% otherwise |
| Penal interest in case of balances over the limit | 3% p.m. on the amount over the approved limit |
| Non-utilisation charges | 0.25%, minimum of Rs. 1,250 every quarter |
| Interest certificate charges | Free once in a year & Rs. 250 per instance for subsequent requests |
*GST and other applicable statutory levies will be charged over all the charges mentioned above.
You can apply for Kotak Mahindra business loan online through MyMoneyMantra with the following steps:
Get Kotak Mahindra Bank Business Loan up to Rs. 2 Crore online at interest rate starting from 16% p.a.
Kotak Mahindra Bank offers a multitude of Business Loans that include working capital finance to business entities to meet their daily requirements, term loans for procuring assets or expanding their business, discounting of bills as post-sale finance, and non-fund based facilities like LC and BG.
Yes, the bank offers collateral-free loans to SME units. The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) covers such loans. Kotak Mahindra Bank is the first private sector bank to join the psbloansin59minutes.com, a platform that approves SME loans to eligible units in 59 minutes.
Kotak Mahindra Bank offers a range of Business Loans at competitive rates of interest. It follows a transparent procedure of appraising the loan proposals. The highlight of the bank is that it has a quick turnaround time for Business Loans. The bank has an attractive service charges structure, whereby it becomes convenient for a business entity to avail Business Loan from Kotak Mahindra Bank.
Kotak Bank has convenient eligibility norms. Individuals, proprietors, partnership firms, public and private limited companies can avail Business Loans from the bank subject to fulfilment of the conditions stipulated by the bank and satisfaction of other eligibility norms.
Yes, it is possible to prepay Kotak Mahindra Bank Business Loan after a lock-in period of 12 months. The rules stipulate the payment of a penalty in case of prepayment of part-payment of Business Loan. However, term loans granted to individuals at floating interest rates do not attract foreclosure penalty of up to 6%.
Kotak Bank offers flexible repayment tenures between 12 months and 48 months. The repayment tenure may vary as per the loan option chosen.
Yes, Kotak Mahindra Bank offers crop loans to farmers depending on the scale of finance prescribed for the particular crop in the specific region. It also provides long-term agricultural project finance for land-related activities like minor irrigation, land development, and horticultural activities.
Kotak Mahindra Bank offers both international and domestic trade finance services to its clients. The facilities include Bills Discounting, Invoice Discounting, Purchase Order Financing, and pre-shipment and post-shipment finance. Besides, the bank also offers non-fund based facilities like BG and LC.
Applicants should satisfy all KYC norms before applying for Business Loans from Kotak Mahindra Bank. They should have a reasonably good credit rating. The higher the credit rating, the lower is the rate of interest. Your business financials also play a vital role in deciding your eligibility.
If you have a current account with Kotak Mahindra Bank, it becomes easy to set up a standing instruction to debit the account and recover the instalment. Alternatively, PDCs and ECS mandates are the most popular methods. One can also transfer funds online to repay the Kotak Mahindra Bank Business Loans.
The interest rate for Kotak Mahindra Bank loan against property varies between 9.50% to 11.60% for women borrowers and 9.60% to 11.70% for others.
