Kotak Mahindra Bank Business Loan

 If you are a self-employed individual who has just started a new business venture, or if you are an aspiring entrepreneur looking for funding to make your dream business idea a reality, a Kotak Mahindra Bank Business Loan can help you out. You can use the funds borrowed to take care of the operational needs of your business, start a new branch, launch a new product or even simply purchase the assets needed to keep your business running.

Choose Kotak Business Loans today and enjoy the advantage of custom-made borrowings that help you meet all your business needs easily. And the best part is that the Kotak Bank Business Loan interest rates are competitive.

Kotak Mahindra Loan Features & Benefits

• High Loan Amount

You can avail Kotak Business Loans ranging from Rs. 3 Lakhs to Rs. 75 Lakhs. This makes them ideal for small, medium as well as large businesses.

• Zero Collateral Needed

The Kotak Bank Business Loans are unsecured. This means that you need not offer any kind of collateral when you apply for a business loan from Kotak Mahindra Bank .

• Quick Approval

We understand how essential funding is for your business. That is why your loan applications are approved very quickly as long as you meet the eligibility criteria.

• Hassle-free Processing

The application process is entirely online. So, the loan processing occurs in a hassle-free and smooth manner, reducing your wait time greatly.

• Flexible Repayment Tenures

The repayment tenures for Kotak Mahindra Bank Business Loans are also flexible. You can choose tenures up to 48 months and repay your loan according to your convenience.

• Easy Documentation

Another advantage is that you can apply for a Kotak Business Loan without worrying about any cumbersome paperwork. The documentation requirement is simple and minimal.

• Affordable Interest Rates

You can also avail Kotak Mahindra Bank Business Loans at affordable interest rates that make repayment easier on your finances.

Kotak Mahindra Loan Eligibility

To avail a business loan from Kotak Mahindra Bank, you need to meet the eligibility criteria in place. Checking these criteria beforehand can help you figure out if you are eligible for Business Loan. It also makes the approval process easier if you meet the eligibility criteria mentioned below.

• The applicant should have been in the business for the previous three years at least.

• The minimum turnover of the business should be Rs. 40 Lakhs.

• The business should have been profitable and generated profits for at least 1 year.

• The applicant can be a sole proprietor, partnership firm, private company, trust or a limited liability partnership involved in the business of trading, manufacturing or providing services.

• The primary applicant should be at least 25 years of age and should not be over 65 years of age at the time of the maturity of the loan.

Kotak Mahindra Loan Interest Rates

One of the most important parameters that you should be aware of when you are applying for a loan is the Kotak Business Loan interest rate. The bank charges interest at affordable rates starting as low as 16% per annum. In addition to this, there is a processing fee that goes up to 2% of the loan amount. Aside from the Kotak Business Loan interest rate and the processing fees, there are no other hidden charges that you need to worry about.

Here are the details tabulated below for your convenience.

*Interest rates and charges are subject to market conditions and the bank’s discretion.

Factors affecting Kotak Mahindra Loan Rates

There are several factors that affect the Kotak Business Loan interest rates. Check them out below.

• The Amount of the Loan

You can avail a Kotak Business Loan ranging from Rs. 3 Lakhs to Rs. 75 Lakhs. The amount of the loan you avail influences the loan interest rates. Generally, the higher the loan amount, the lower the interest rate will be.

• The Applicant’s CIBIL Score

Kotak Business Loan interest rates tend to be higher if the applicant has a low CIBIL score. However, if the CIBIL score is at least 700, the rates of interest tend to be more affordable since the borrower is creditworthy.

• The Business’s Revenue

A higher monthly income or annual turnover can be extremely helpful in lowering the cost of borrowing. This is because interest rates tend to drop as the business’s revenue rises. So, if your business has higher revenue, you can get a loan at an affordable interest rate.

• The Stability of the Business

The longer a business has been in the industry, the stabler and more experienced it is considered to be. So, this works in the favour of the business and directly translates to lower business loan interest rates.

Kotak Mahindra Loan EMI Calculator

The Kotak Mahindra Bank Business Loan EMI calculator is a simple online tool that you can use to get a better idea of the amount that you need to repay each month. You need to enter the following details in the Kotak Mahindra Bank Business Loan EMI calculator.

• The Amount of Loan

This is the principal amount of the loan that you borrow. The higher the loan amount, the higher the EMI.

• The Rate of Interest

The rate of interest is the rate at which the bank charges interest on the amount borrowed. The higher the rate of interest, the higher the EMI.

• The Repayment Tenure

This is the period over which you will repay the amount of loan borrowed. You can choose repayment tenures up to 48 months.

The EMI is calculated using the following formula: E = P * r * (1+r)^n / ((1+r)^n-1).

Here, ‘E’ is the EMI you need to repay each month, ‘P’ is the principal amount borrowed, ‘r’ is the rate of interest, and ‘n’ is the duration of repayment of the loan.

So, for example, if you borrow Rs. 10 Lakhs at the rate of 16% per annum and wish to repay it over 2 years, the EMI will be Rs. 48,963. Over the course of 120 months, you will repay Rs. 11,75,115. Of this, Rs. 1,75,115 is the interest component.

How to Apply for Kotak Mahindra Bank Business Loan?

It’s very easy to apply for a Kotak Mahindra Bank Business Loan. You just need to follow the steps given below. 

1. Visit the website of Kotak Mahindra Bank and head to the ‘Business’ section.

2. From the ‘Explore Products’ dropdown list, choose ‘Business Loans.’

3. Click on the ‘Apply Now’ option.

4. Then, select whether or not you are an existing Kotak customer.

5. If you are, you need to enter the details required, such as your registered mobile number, date of birth or CRN, and the captcha shown.

6. If you are not an existing Kotak customer, you will be taken to a different page with an application form.

7. Here, you need to enter the details required, like your name, mobile number, email address, age, gender and PAN number.

8. You also need to enter the details pertaining to your business, such as the type of business, your business vintage, its annual turnover and whether or not you own any property. You also need to select the city in which your business operates.

9. Once you’ve entered these details, check the box to agree to the terms and conditions.

10. Then, click the ‘Apply Now’ option.

11. A representative from Kotak Mahindra Bank will then get in touch with you shortly.

Documents Required for Kotak Bank Loan Application

When you apply for a Kotak Business Loan , you need to submit the following documents. 

• Proof of identity: PAN card, driving licence, passport, voter's ID or Aadhaar card

• Proof of address: Passport, driving licence, voter's ID, Aadhaar card, utility bill, bank statement or updated bank account passbook that is no more than 3 months old

• Proof of ownership: Agreement copy, electricity bill, maintenance bill with share certificate, municipal tax bill or share certificate

• Proof of business continuity: Shop and Establishment certificate or GST registration

• Firm constitution: MOA, partnership deed or GST registration certificate

Types of Business Loans offered by Kotak Bank

• Regular Business Loans

These collateral-free loans from Kotak Mahindra Bank help you meet your business needs and scale new heights in your business goals every day.

• Loan Against Property

This is a secured business loan that is sanctioned against an asset pledged as a security. You can use the funds to meet new milestones in your business.

• Commercial Vehicle Loan

These loans offer customised solutions that give you access to financing for purchasing new or used commercial vehicles for your business needs.

• Construction Equipment Loan

These financial solutions provide funding for the complete range of construction equipment - both new and used. It also includes top-up loans and refinancing.

• Farm Equipment Loan

Kotak Mahindra Bank also offers business loans for the purchase of farm equipment like old or new tractors, harvesters and other agricultural machinery.

• Crop Loan

These loans from Kotak Mahindra Bank help fulfil the working capital requirements of farmers and make it easier for them to meet the cost of farm development, cultivation, raw material purchase and more.