Kotak Mahindra Business Loan Details

Interest RateStarting at 16% p.a.
Minimum loan amountRs. 3 Lakhs
Maximum loan amountRs. 75 Lakhs
Repayment tenureUp to 48 months
Processing feeUp to 2% of loan amount + GST & other levies
Foreclosure charges 5% - 6% of operating limit + GST & other levies
Age25 - 65 years  
Minimum turnoverRs. 40 Lakhs

Types of Kotak Mahindra Business Loans

Kotak Mahindra offers the following types of business loans:

Business Loan

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

  • Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
  • Tenure: Up to 48 months.
  • Collateral: Not required.

 Dealer Finance

This business loan is for commercial vehicle, two or three wheelers, and construction equipment dealers.

  • Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
  • Tenure: Up to 48 months.
  • Collateral: Not required.

Facility Against Credit Card Receivables  (FCCR)

It is a business loan against credit card receivables available as term loan and overdraft.

  • Loan amount: Up to Rs. 3 Crores on the basis of the yearly sales done on the credit card POS facility.
  • Tenure: Up to 48 months.
  • Collateral: Not required.

Crop Loans

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.

  • Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
  • Tenure: Up to 5 years.
  • Collateral: Not required.

Loan Against Property

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.
  • Collateral: Mortgage of commercial, residential or industrial property.

Construction Equipment Loan

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.

  • Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
  • Tenure: Up to 48 months.
  • Collateral: Not required.

Commercial Vehicle Loan

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: Up to 48 months.
  • Collateral: Not required.

Strategic Business Loan

These customised business loans are offered against property or any other asset to help you meet your requirements.

  • Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
  • Tenure: Minimum 3 years.
  • Collateral: Property or any other asset.

Digi OD (Digital Overdraft) Facility

These customised business loans are offered against property or any other asset to help you meet your requirements.

  • Loan amount: Up to Rs. 6 Lakhs.
  • Tenure: Up to 48 months.
  • Collateral: Not required.

Farm Equipment

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.

  • Loan amount: Rs. 3 Lakhs to Rs. 75 Lakhs.
  • Tenure: Up to 48 months.
  • Collateral: Not required.

Features of Kotak Mahindra Business Loan

Following are the key features of Kotak Mahindra business loans:

  • Loans available from Rs. 3 Lakhs up to Rs. 75 Lakhs.
  • Flexible tenure of up to 48 months makes repayment easier.
  • Affordable interest rates starting from as low as 16% p.a.
  •  Low processing fee of up to 2% of the sanctioned loan amount plus applicable GST & other levies.
  •  Fund against credit card receivables (FCCR) available with loan amount up to Rs. 3 Crores.
  • 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.

Why Choose Kotak Mahindra Business Loan?

  • Hassle-free processing and quick approval.
  •  Flexible repayment options.
  • Easy EMIs depending on your business turnover.
  • Doorstep service available.
  • Easy eligibility norms and minimum documentation formalities.
  •  Facility to apply for a Business Loan online.
  • Calculate your EMI online.
  • No collateral required.

Kotak Mahindra Business Loan EMI Calculation

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:

  • The required loan amount
  • Rate of interest
  • Repayment tenure

 Here is an illustration:

Loan amount availed: Rs. 10 Lakhs

Applicable rate of interest: 16% p.a.

Tenure opted for: 4 years

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:

YearOpening BalancePrincipal to be Paid in a YearTotal Interest to be Paid in a YearTotal Amount to be Paid in a YearClosing Balance
1Rs. 10,00,000Rs. 93,097Rs. 76,945Rs. 1,70,042Rs. 9,06,903
2Rs. 9,06,903Rs. 2,09,932Rs. 1,30,151Rs. 3,40,083Rs. 6,96,971
3Rs. 6,96,971Rs. 2,46,098Rs. 93,986Rs. 3,40,083Rs. 4,50,873
4Rs. 4,50,873Rs. 2,88,493Rs. 51,590Rs. 3,40,083Rs. 1,62,380
5Rs. 1,62,380Rs. 1,62,380Rs. 7,661Rs. 3,40,083Rs. 0

Kotak Mahindra Business Loan Documents Required

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:

  •  Identity Proof: Passport, PAN Card, Driving License, Aadhaar Card, or Voter's ID (any one).
  • 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 (any one).
  • 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 (any one).
  • Firm Constitution Proof: MOA, Partner Ship Deed, or GST Registration Certificate (any one).
  • Financial Documents: Latest 2 years’ financials & Tax Audit Report, and last 6 months’ bank statements of business accounts.

Kotak Mahindra Business Loan Eligibility

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

Kotak Mahindra 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 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 Business Loan Charges

Type of chargeAmount
Processing feeUp to 2% of the sanctioned amount
Documentation chargesRs. 3,500 to Rs. 7,000
Cheque dishonourRs. 750 per instance
Copy of any documentRs. 500 per instance
Repayment mode/ Account swappingRs. 500 per instance
Duplicate NOC or No Dues CertificateRs. 500 per instance
Copy of CIBIL reportRs. 50 per instance
Term Loan Specific Charges
Prepayment charges6% within a lock-in period of 12 months & 5% otherwise
Penal interest3% p.m. on a compounded basis
Collection charges in case of default30% of cheque dishonour charges plus penal interest
Amortisation schedule or Account statementFree once in a year & Rs. 250 per instance for subsequent requests
Overdraft Specific Charges
Annual review charges for OD1.5% of renewal limit or Rs. 5,000 whichever is higher
Termination charges6% of operating limit within a lock-in period of 6 months 5% otherwise
Penal interest in case of balances over the limit3% p.m. on the amount over the approved limit
Non-utilisation charges0.25%, minimum of Rs. 1,250 every quarter
Interest certificate chargesFree 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.

How to Apply for Kotak Mahindra Business Loan?

You can apply for Kotak Mahindra business loan online through MyMoneyMantra with the following steps:

  • Open the Business Loan page given under Loans tab.
  • Click on the Compare & Apply button.
  • Enter all the required details and click on Let’s Go.
  • Choose employment type from given options.
  •  Enter your annual turnover, address, and other business related details.
  •  Accept the terms & conditions and click on Next.
  •  Enter the OTP.
  • Compare the options given on the screen and choose Kotak Mahindra Bank as your business loan lending partner. You can choose other lender too.
  • Click on Apply Now to submit your application.
  • Note down the Application Number for tracking purpose.
  • Our representative will get in touch with you soon.

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Business Loan Offers

Get Kotak Mahindra Bank Business Loan up to Rs. 2 Crore online at interest rate starting from 16% p.a.

Kotak Mahindra Bank Business Loans 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 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%.

What is the maximum Business Loan repayment tenure at Kotak Mahindra Bank?

Kotak Bank offers flexible repayment tenures between 12 months and 48 months. The repayment tenure may vary as per the loan option chosen.

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.

What is the interest rate for Kotak Mahindra Bank loan against property?

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.