Kotak Mahindra Bank Business Loan

• 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.

• 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.

• 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.

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.

• 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. 

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