Kotak Business Loan

The following are the key details of the Kotak Business Loan:

Kotak business loan interest rates are competitive and range from 10.00% to 32.00% per annum. These interest rates are for the retail Kotak Mahindra Bank business loan interest rate. For commercial business loans, Kotak Mahindra Bank charges the following interest rates:

Kotak Mahindra offers the following types of Kotak Bank business loans:

1. Business Loan

Purpose: This business loan is available for all small, medium and large businesses for all business needs.

• Loan amount: Rs. 3 Lakhs to Rs. 1 Crore.
• Tenure: Up to 60 months.
• Collateral: Not required.

2. Channel Finance

Purpose: End-to-end solutions for channel partners/vendors of credible corporates indulged in FMCG, Healthcare, Pharmaceuticals & Medical equipment, Industrial equipment, Textiles, IT, Electronics, Engineering Goods, etc.

• Loan amount: Funding is offered in the form of finance against purchase invoices.
• Tenure: Maximum tenure can extend up to the Trade Agreement period with the corporation.
• Collateral: This loan is offered against purchase invoices.

3. Dealer Finance

Purpose: This business loan is for commercial vehicles, two or three-wheelers, and construction equipment dealers.

• Term Loan Options: For automobile dealers for setting up new dealerships, expansion, renovation and supplementing working capital requirements.
  • Amortizing Term Loan: For purchasing property for business expansions/ new dealerships.
  • Equipment Term Loan: For purchasing equipment for their service centre.
  • Working Capital Term Loan: For funding and supplementing core working capital.
• Working Capital Options
• Inventory Funding: For auto dealers to finance their working capital requirements.
• Dealer Inventory/ Vehicles Funding Facility: This facility is linked to the retail business sourced through the dealership counter.
• Finance Facility: It can be set up to cater to partial/ entire vehicle-related working capital requirements of the dealership.
• Cash Credit: This facility is offered towards the funding of debtors and spares.
• Non-Fund-Based Facilities: Letter of Credit/ Bank Guarantee (LC/BG) is available for dealers as a sub-limit or as a stand-alone limit, as required.

4. Agri SME Business

Purpose: This facility caters to the needs of every type of agri-business across even non-metro locations in India, including small & medium enterprises, farmers, aggregators & processors, and traders & exporters.

• Working Capital Finance: The working capital solutions offered by Agri-Business Group are developed based on the financial and qualitative evaluation of specific businesses and their working capital needs. The structure of this business finance can be made through cash credit or loans. You can also avail of Kotak’s working capital solutions as a multiple banking arrangement or as a sole banker. The range of products offered as working capital finance includes Cash Credit, Overdraft, Short Term Loan, Working Capital Demand Loan, and Bill Discounting/ Invoice Discounting.
• Funding Against Warehouse Receipts: This loan is available for farmers, traders, processors and aggregators in the agricultural sector against their agri produce/ commodity stocks by pledge of warehouse receipts. You can get credit up to 80% for the agricultural commodity being warehoused as collateral against the loan taken to meet your business needs.

5. Transportation, Logistics, Warehouse

Purpose: End-to-end solutions for the financial requirements of logistics companies.

• Term Loan: For setting up of workshop/ warehousing facilities, purchase of the existing workshop/ warehouse, office for transporters/ shipping companies/ clearance and freight forwarding (CNF) business, inland container depot (ICD), supply chain management, and for rental discounting for warehouse principals. You can also avail of a working capital term loan for amortising in nature, a balance transfer/takeover term loan.
• Working Capital: The bank provides a wide range of fund-based and non-fund-based credit facilities by way of CC/OD, Bill Discounting, Bank Guarantee, Letter of Credit, etc., to meet the day-to-day funds requirements of customers.

6. Infrastructure Finance

Purpose: End-to-end financial solutions for infrastructure projects.

• Fund Based Facilities: Cash Credit, Overdraft, Working Capital Demand Loan, Bills/Invoice Discounting, Term Loan, Lease Rental Discounting and Loan Against Property.
• Non-Fund Based Facilities: Bank Guarantee, Letter of Credit, Letter of Credit Backed Bill Discounting and Buyer’s Credit.
• Other Facilities: Facilities on construction & material handling equipment and balance transfer/ takeover facilities.
• Collateral: All types of commercial/ residential/ industrial properties/ NA plots within municipal limits, and commercial/construction equipment.

7. Loan Against Property

Purpose: This loan is obtained against the property and can be used for any business as well as personal financial needs.

• Loan amount: Rs. 10 Lakhs to Rs. 5 Crores.
• Tenure: Up to 15 years.
• Interest rate: Kotak Bank business loan interest rate for this scheme starts at 9.50% p.a.
• Processing fee: 1% of the loan amount + GST & statutory dues.
• Collateral: Mortgage of commercial, residential or industrial property.

8. Commercial Vehicle Loan

Purpose: 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.

• Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
• Tenure: 12 to 60 months.
• Interest rate: Up to 24% p.a.
• Processing fee: Up to 3% of the loan amount.
• Collateral: Not required.

9. Construction Equipment Loan

Purpose: This loan can be used for the purchase of new or old construction equipment, such as material handling equipment, earth-moving equipment, road-building equipment, and concrete equipment.

• Loan amount: Up to 100% financing.
• Tenure: 12 to 48 months.
• Interest rate: Up to 24% p.a.
• Processing fee: Up to 3% of the loan amount.
• Collateral: Not required.

10. Crop Loans

Purpose: This business loan is for farmers and caters to their working capital needs for meeting the cost of cultivation, purchase of inputs, development of farms, and so on.

• Interest rate: Up to 24% p.a.
• Processing fee: Up to 2% of the loan amount.
• Kisan Credit Card
  • Short-term working capital limit for funding of agricultural input costs of seeds, fertilisers, labour, etc.
  • Working capital limit is a fixed scale of finance of crops grown by borrowers on agricultural land.
  • Annual review of the working capital limit.
  • Renewal of the working capital limit after 5 years.
• Agri Term Loan
  • Medium Term Loan for ancillary activities like land development, repair & maintenance of farm assets, drip irrigation, etc.
  • Agri Term Loan for fixed terms of a maximum of 5 years.

11. Agri Project Loan

Purpose: Long-term financing for any land-based agriculture/ allied activity.

• Financing for Land-based Projects: Horticulture, floriculture, vermiculture, medicinal plant cultivation, mushroom cultivation, tissue culture, and sericulture.
• Funding for Other Land-related Activities: Farm mechanisation, minor irrigation, crop loans, and land development.
• Allied Agri Projects: Related to poultry, dairy, piggery, fishery, mushroom units, and bee-keeping.
• Finances for the construction of rural godowns and cold storages.

12. Farm Equipment

Purpose: This business loan can be obtained for purchasing new and old tractors, loaders, rotavators, trailers, combined harvesters, dusters, sprayers, threshers, and implements for agricultural or commercial purposes, etc.

• Loan amount: Up to 90% of tractor value.
• Interest rate: This scheme comes with a Kotak Mahindra business loan interest rate of up to 30% p.a.
• Processing fee: Up to 3% of the loan amount.
• Insurance: Life insurance shield under Kotak Kisan Suraksha

13. Healthcare Finance Solutions

Purpose: Loan for meeting the financial needs of the healthcare industry, including Hospitals, Laboratories, Diagnostic centres, Nursing Homes, Clinic’s and Self-employed Doctors.

• Loan amount: Rs. 10 Lakhs to Rs. 10 Crores.
• Tenure: 12 to 84 months.
• Processing fee: Up to 2% of the loan amount.

The fees and charges Kotak Mahindra Business Loan:

Kotak Mahindra business loan eligibility criteria are mentioned below:

The applicant should be a Sole Proprietor/ Private Ltd Co./ Partnership firm/ Trust/ LLP, involved in manufacturing, trading, or services.

• The main applicant’s age should be a minimum of 25 years and should not be above 65 years at the time of loan maturity.
• The applicant should have been in the business for at least the last 3 years.
• The minimum business turnover should be Rs. 40 Lakhs or above.
•  The business must have generated profit for at least 1 year.

Document requirements may vary as per the type of business loan to be applied for. The following are the documents required for applying for a Kotak Mahindra business loan:

• Identity Proof: Passport, PAN Card, Driving License, Aadhaar Card, or Voter's ID (anyone).
• Address Proof: Passport, Voter's ID, Driving License, Utility Bill, or Bank Account Passbook (updated & no more than 3 months old), Bank Statement, Aadhaar Card (anyone).
• Ownership Proof: Electricity Bill, Agreement Copy, Maintenance Bill with Share Certificate, Municipal Tax Bill, or Share Certificate (any one).
• Business Continuity Proof: Shop & Establishment Certificate or VAT/ Service Tax/ GST registration (anyone).
• Firm Constitution Proof: MOA, Partnership Deed, or GST Registration Certificate (anyone).
• Financial Documents: Latest 2 years’ financials & Tax Audit Report, and last 6 months’ Bank Statements of business accounts.

If you are eligible for a Kotak pre-approved business loan, you will not be required to submit most of the above documents.

You can apply for a Kotak Mahindra business loan online through the official website of the bank with the following steps:

• Open the Business Loan page given under the Loans tab.
• Click on the ‘Apply Now’ button.
• Fill out the online application form by entering all the required details.
• Submit your application.
• The bank’s representative will get in touch with you soon.

Here are some ways to track the status of your Kotak Bank business loan application:

• Through net banking or the mobile app of the bank: You can log in to the net banking or the mobile app of the bank to check your Kotak business loan status.
• SMS: Kotak will send you SMS updates regarding your loan application status.
• Contact your relationship manager: You can get in touch with your relationship manager/ sales manager for updates on your business loan application status.

Customers can contact Kotak Mahindra Bank to air their grievances or submit feedback by using the following channels of communication.

• 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