Kotak Mahindra Bank Business Loan
Kotak Mahindra Bank Ltd is the first non-banking financial company (NBFC) in India to gain the status of a bank. In February 2003, the Kotak Group's flagship company, Kotak Mahindra Finance Ltd received the banking licence from the Reserve Bank of India (RBI) authorising it to conduct banking operations in India. That was the entry of Kotak Mahindra Bank, also known as Kotak Bank into the Indian banking sector.
Kotak Bank expanded its business by taking over ING Vysya Bank Ltd in April 2015. Kotak Bank caters to a vast clientele of retail and corporate customers throughout India through its four strategic business units comprising of Corporate Banking, Consumer Banking, Commercial Banking and Treasury activities. Kotak Bank's symbol signifies infinity, thereby symbolising that they provide infinite solutions to their customers to meet their requirements.
Kotak Bank offers various loans to different categories ranging from retail to corporate. These loans range from home loans to car loans and education loans to Business Loans.
Why Choose Kotak Mahindra Bank Business Loan?
Kotak Bank has loans to suit all your needs. Kotak Bank Business Loans are available for meeting working capital requirements, procuring fixed assets for the running of the business, expansion of the company, and various other requirements. The advantage of availing Kotak Mahindra Bank Business Loan is the competitive rate of interest and convenient repayment options. The bank offers unsecured loans as well as collateral-based loans depending on your needs. Transparency is a crucial feature of Kotak Bank Business Loans.
Kotak Mahindra Bank Business Loan - Features and Benefits
- Loans available for all business activities
- Working capital finance available to meet the daily requirements of your business.
- Term loans for procurement of fixed assets or expansion of business
- Loan against property available for business purposes
- Loans available from 3 Lakhs up to 2 Crores
- Hassle-free processing and quick approval
- Flexible repayment options
- Easy EMIs depending on your business turnover
- Doorstep service available
- Reasonable charges and competitive rates of interest
- Easy eligibility norms
- Minimum documentation formalities
- Facility to apply for a Business Loan online
- Calculate your EMI online
- Transparency in services
Kotak Mahindra Bank Business Loan Interest rates
The MCLof Kotak Bank as on 01 June 2019 are as follows:
Tenor | Rate |
Overnight |
8.30% |
One Month |
8.30% |
Three Months |
8.60% |
Six Months |
8.80% |
One Year |
8.90% |
Two Years |
8.90% |
Three Years |
8.90% |
Following are the applicable interest rates n different Business Loan products based on MCLR:
Loan Product | Category of Borrower | Applicable rate of interest |
Loan against property for business purposes |
Salaried Individual Self-Employed Person |
9.60% to 10.35% 9.60% to 10.35% |
Working Capital Finance (Up to 7.50 Crores) |
Micro and Small Enterprises Non-micro and small enterprises |
9.20% to 14% 10% to 15% |
Business Loans |
All categories |
16% to 19.99% |
Commercial Vehicle Finance |
All types |
Prevailing MCLR to 24% |
Types of Kotak Mahindra Bank Business Loans with Eligibility Criteria
Kotak Mahindra Bank offers various types of Business Loan products as mentioned below:
Agriculture and Farming | Agro Processing and Trading | Transport | Retail | Service | Manufacturing | Construction and Infrastructure |
Business Loan |
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Agri Project Loan |
Dealer Finance |
Finance against credit card receivables |
Channel Finance |
Construction Equipment and Infrastructure Finance |
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Agri SME Business |
Transportation, Logistics, Warehouse |
Loan against property |
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Commercial Vehicle Loan |
Apart from Business Loans to individuals and non-corporate entities, Kotak Mahindra Bank caters to the requirement of the corporate sector by providing the following credit facilities:
- Long Term Finance
- Working Capital Finance
- Structured Finance
- Debt Syndication
- Acquisition Finance
- Trade and Supply Chain Finance
- Services for Exporters and Importers
- Forex Services
Business Loan
Purpose |
To meet all kinds of business requirements |
Facility |
Overdraft or Term Loan |
Features |
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Eligibility Criteria |
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Agri Project Loan
Purpose |
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Facility |
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Features |
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Eligibility Criteria |
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Agri SME Business
Purpose |
SME units indulging in agricultural activity |
Facility |
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Features |
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Eligibility Criteria |
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Dealer Finance
Purpose |
Meet financial requirements of two/three wheeler, commercial, and construction vehicle dealers. |
Facility |
|
Features |
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Eligibility Criteria |
Business units engaged in dealership of commercial vehicles, construction equipment vehicles, and two/three wheelers. |
Transportation, Logistics, and Warehouse
Purpose |
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Facility |
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Features |
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Eligibility Criteria |
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Commercial Vehicle Finance
Purpose |
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Facility |
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Features |
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Eligibility Criteria |
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Finance Against Credit Card Receivables
Purpose |
Business Loan or Overdraft against credit card receivables |
Facility |
|
Features |
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Eligibility Criteria |
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Channel Finance
Purpose |
Meet working capital requirements of channel partners or vendors of corporate entities dealing in various products like FMCG, Pharma, healthcare, textiles, and many more. |
Facility |
Working capital finance |
Features |
|
Eligibility Criteria |
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Loan Against Property for Business
Purpose |
Loan against property for meeting business requirements such as working capital and expansion of business or purchase of fixed assets. |
Facility |
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Features |
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Eligibility Criteria |
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Construction Equipment and Infrastructure Finance
Purpose |
Purchase of construction equipment like earth moving equipment, road-building equipment, material-handling and concrete equipment. |
Facility |
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Features |
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Eligibility Criteria |
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Corporate Loans
Long Term Loans |
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Rupee Term Loan |
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Off-Shore Foreign Currency Loans |
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External Commercial Borrowings |
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Working Capital Finance |
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Cash Credit and Overdraft |
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Demand/Short Term Loans |
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Working Capital Term Loan |
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Supply Chain Financing |
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Structured Finance: Kotak Mahindra Bank offers structured financing to enable corporate access to low-cost funds from the market. Corporate entities can get the benefits of the following products under this financing option:
- Commercial papers
- Non-convertible debentures
- Quasi Equity Instruments
- Lease Rental discounting
- Promoter Financing
Apart from structured financing, Kotak Bank offers high-end financing solutions like Debt syndication, Acquisition Finance, and Trade and Supply Chain Finance.
Documents Required for Kotak Mahindra Bank Business Loan
Document Type | Appropriate documents |
Identity Proof |
Any one of the listed documents: PAN Card Passport Driving License Voter's ID Aadhaar Card |
Address Proof |
Any one of the listed documents: Passport Voter's ID Driving License Aadhaar Card Utility Bills Bank Statement or Passbook |
Ownership Proof |
Proof of ownership of residential/commercial property in select locations. |
Income Proof |
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Why Apply for Kotak Mahindra Bank Business Loan on MyMoneyMantra?
MyMoneyMantra makes it convenient for customers to apply for Kotak Mahindra Bank Business Loan. We offer the following facilities that should benefit customers to choose our site to apply for the loan.
- Comfortable navigation facilities that help you access different Business Loan products offered by more than 90 banks and NBFCs in India.
- Get the advantage of personalised assistance from our loan executives, especially in matters concerning compiling and submission of the relevant documents.
- Use our EMI Calculator to get an idea about your probable EMI before applying for the Business Loan.
How to Apply for Kotak Mahindra Bank Business Loan?
- Apply online for Kotak Mahindra Bank Business Loan on the official website of Kotak Mahindra Bank. Every loan product page has an 'Apply Now' option that enables you to lodge an online application.
- Use the MyMoneyMantra website to apply for Kotak Mahindra Bank Business Loan. The advantage is that you can compare various Business Loans before selecting your option. Secondly, our executives help you with compiling the documents and submitting them to the bank. Our customer service executives guide you throughout the loan application process by explaining the loan product.
- Walk into any of the nearest Kotak Mahindra Bank branches and contact the Branch Manager for details regarding the Business Loan products offered by the bank. It is also possible to submit your loan application to the bank directly. The application forms for all the loans are available on the website of the bank.
How to Apply for Kotak Mahindra Bank Business Loan on MyMoneyMantra?
MyMoneyMantra offers the easiest way to apply for Kotak Bank Business Loan.
- Access our website and select Business Loans under Loans
- Fill in the details asked for and provide your mobile number to receive an OTP from our side
- Enter the confirmatory OTP at the specified location to gain access to the Business Loan comparison webpage.
- Select your option as Kotak Mahindra Bank following which we direct you to the official website of the bank to enable you to complete the loan application formalities.
- Our customer service executive will be in touch and help you to complete the documentation formalities.
Other Products by Kotak Mahindra Bank
Besides Business Loans, Kotak Mahindra Bank offers various other products to its customers as mentioned below:
Home Improvement Loan |
Loan Against Security (Kotak Stock Ace) |
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Education Loan |
Car Loan |
Gold Loan |
Current Account |
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Savings Account |
Corporate Salary Accounts |
Kotak 3-in-1 Account |
Retail Institutional Accounts |
Safe Deposit Locker |
Recurring Deposit |
Fixed Deposit |
Senior Citizen Fixed Deposit |
Tax Saving Fixed Deposit |
Sweep-In Facility |
Debit Cards |
Credit Cards |
Forex/ Prepaid Cards |
Health Insurance |
Life Insurance |
Motor Insurance |
Pradhan Mantri Suraksha Bima Yojana |
Pradhan Mantri Jeevan Jyoti Bima Yojana |
Atal Pension Yojana |
Portfolio Management Service |
Mutual Funds |
Sovereign Gold Bond Scheme |
Kotak ASBA Facility |
Demat Account |
National Pension System |
How to Calculate Kotak Mahindra Bank Business Loan EMI?
Kotak Mahindra Bank offers facilities to calculate your probable EMI in advance. Select the Calculate EMI option on the Business Loan webpage of the bank.
Submit your loan requirement, the applicable rate of interest, and the repayment period. You get the EMI instantly.
Use MyMoneyMantra Business Loan EMI Calculator
MyMoneyMantra has a similar EMI Calculator on its home page under the Financial Tools section. All you have to do is to enter the probable loan amount, rate of interest, and the repayment tenure. As soon as you hit the Calculate button, the EMI Calculator determines your EMI within no time.
Kotak Mahindra Bank Business Loan Charges
Type of charge | Amount |
Processing fee |
Up to 3% of the sanctioned amount |
Documentation |
Up to 10,000 per instance |
Cheque dishonour |
750 per instance |
Copy of any document |
500 per instance |
Repayment mode/ Account swapping |
500 per instance |
Duplicate NOC or No Dues Certificate |
500 per instance |
Copy of CIBIL report |
50 per instance |
Term Loan Specific Charges |
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Prepayment charges |
Within a lock-in period of 12 months - 6% of foreclosure amount Subsequent foreclosure: 5% on loan foreclosure amount No foreclosure charges payable for individuals availing term loan @ floating rate of interest |
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 |
Once in a year: Free Subsequent requests: 250 per instance |
Overdraft Specific Charges |
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Annual review charges for OD |
1.5% of renewal limit or 5,000 whichever is higher |
Termination charges |
Within a lock-in period of 6 months: 6% of operating limit Subsequent termination: 5% of operating limit |
Penal interest in case of balances over the limit |
3% p.m. on the amount over the approved limit |
Non-utilisation charges |
0.25% of the difference between actual average utilisation and 25% of the average limit during each quarter with a minimum of 1,250, chargeable every quarter. |
Interest Certificate Charges |
Once in a year: Free Subsequent requests: 250 per instance |
Transportation, Logistics, and Warehousing |
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Non-submission of stock statement/book debts statement |
5,000 per month |
Non-submission of insurance policy |
1,500 per month |
Non-submission of financial statements |
5,000 per month |
Monitoring of covenants |
1,500 for every default |
Overdue charges |
3% per month |
Non-submission of worth statements |
5,000 per month |
Non-submission of end-use certificate |
5,000 per month |
Foreclosure statement |
3% of the principal outstanding amount |
Closure fees |
Within six months: 3% of sanctioned limits Subsequent closure: 2% of sanctioned limits |
Temporary OD setting up fees |
1000 per request |
Ad-hoc/OD setting up |
3,000 per request |
Stamp duty and other charges |
As per actual |
Low churning penalty |
If utilisation is less than 40%, the penalty for under-utilisation is 2% of average utilisation. |
Average utilisation < 50% |
10,000 per month |
Commercial Vehicle Finance Charges |
|
Processing charges |
Up to 2% of the loan amount |
Documentation charges |
Up to 5,000 |
Overdue interest |
3% of the overdue amount |
Collection charges |
30% of penal charges |
Dishonour charges |
750 per occasion |
Swap charges |
Up to 500 per occasion |
Prepayment or foreclosure charges |
5% of principal outstanding on the date of repayment |
Issue of duplicate NOC |
500 |
CIBIL Copy |
50 |
Amortisation schedule or Statement of account |
500 |
Payment processing |
1,000 |
Valuation for used vehicles |
Within the city: 1,000 Outside the city: 1,500 |
Vehicle repossession |
Up to 15,000 |
Credit administration |
Up to 6,000 |
Duplicate foreclosure statement |
500 |
NOC for national/state permit or change in body type |
500 |
Rebooking of loans |
2,500 |
Change in instalment date |
1,000 |
Change in property |
2,000 |
Copy of any property/loan document |
1,000 |
Asset verification charges and legal charges |
Actual |
NOC for conversion to commercial/private |
2,000 |
Loan Against Property |
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Charges are similar to that of Business Loan Term Loans and Overdraft facilities except for the following charges. |
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Prepayment charges for Term Loan |
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Non-maintenance of minimum credit turnover charges in OD accounts |
Minimum 1% of sanctioned limit every 12 months |
Construction Equipment and Infrastructure Finance |
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Same as that applicable to Commercial Vehicle Finance |
Kotak Mahindra Bank Business Loan - Customer Care
Customers can contact Kotak Mahindra Bank to air their grievances or submit feedback by using the following channels of communication.
- Phone: Call Kotak Bank 24X7 at their Customer Contact Centre 1860-266-2666 (Toll-free)
- Phone: Call Toll-free number 1800-209-5600 from Monday to Saturday between 9.30 am and 6.30 pm.
- Write to Kotak Mahindra Bank: Existing Business Loan customers can use the 'Write to us' option and submit their queries online.
- Email: SME customers can send an email to customerfirst@kotak.com and provide their feedback and questions.
- Chat with Keya: Kotak Bank's chat assistant Keya will also help resolve customer queries
Kotak Mahindra Bank Business Loan - FAQs
What types of Business Loans are offered by Kotak Mahindra Bank?
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.
Does Kotak Mahindra Bank offer loans without collateral to SME units?
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.
What are the benefits of applying for Kotak Mahindra Bank Business Loan?
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.
How are the eligibility norms for Business Loans at 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.
Is it possible to prepay Kotak Mahindra Bank Business Loan?
Yes, it is possible to prepay Kotak Mahindra Bank Business Loan after the prescribed lock-in period. 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.
What is the maximum Business Loan repayment tenure at Kotak Mahindra Bank?
Kotak Bank offers flexible repayment tenures between 12 months and 60 months. Some loans have shorter repayment tenure. The long-term loans sanctioned to corporate entities can have repayment tenures for more than five years and up to seven years.
Does Kotak Mahindra Bank offer crop loans to farmers?
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.
What type of Trade Services does Kotak Mahindra Bank offer to its clients?
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.
What are the aspects that affect my eligibility for a Business Loan at Kotak Mahindra Bank?
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.
How does one repay the Kotak Mahindra Bank Business Loan instalment?
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.
Latest News and Snippets- Kotak Mahindra Bank Business Loan
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Following the advice of RBI on giving moratorium for customers to help them sail through this tough time brought by coronavirus lockdown, the Kotak Mahindra Bank has also announced a policy for providing the said relief to its borrowers.Read More
Kotak Mahindra Bank is the first private sector bank to join the 'PSB Loans in 59 minutes' platform
As part of its initiative to serve the business sector, Kotak Mahindra Bank offers loans up to 1 Crore to MSME sector through the psbloansin59minutes.com platform. In doing so, Kotak Mahindra Bank has become the first private sector bank to provide this facility to the MSME sector.
Kotak Mahindra Bank is the first bank in India to go live with both the debit card and Net Banking on the NPCI's e-Mandate API platform
Kotak Mahindra Bank launched the industry's first debit card-based authentication solution on NPCI's e-Mandate API platform to become the first bank in India to go live with both the debit card and Net Banking channels on this platform. Hence, Kotak Mahindra Bank's customers can create electronic mandates using both their debit and net banking channels.