Introduction
Kotak Mahindra Bank offers business loans with interest rates starting from 14% p.a., providing flexible loan tenures of up to 48 months and loan amounts of up to Rs. 75 lakh. These loans are designed to meet a range of business needs, including working capital, business expansion, equipment purchase, or managing daily operations.
Kotak Mahindra Bank business loans feature minimal documentation, quick approval, and no collateral requirement, making them ideal for small and medium-sized enterprises (SMEs). The bank also offers flexible repayment options, ensuring that businesses can manage their cash flow efficiently and focus on growth.
Highlights of Kotak Mahindra Bank Business Loan
| Feature | Details |
| Interest Rate | 8.70% p.a. onwards |
| Loan Amount (LTV Ratio) | Up to 90% of property value |
| Loan Tenure | Up to 25 years |
| Processing Charges | Up to 1% of the loan amount |
| Minimum Monthly Income | Rs 20,000 (Delhi, Mumbai, Chennai, Pune, Bangalore)Rs 15,000 (Other cities) |
Types of Business Loans
| Loan Type | Purpose | LTV Ratio | Tenure | Special Features | Interest Rate | Eligibility Criteria | Collateral Required |
| Business Term Loan | Expansion, working capital, etc. | Up to 80% | Up to 5 years | Flexible repayment options | 10.5% – 18% p.a. | Minimum 3 years of business operations | Yes |
| Working Capital Loan | Short-term operational expenses | Up to 70% | 12 months, renewable | Overdraft facility, easy renewals | 9% – 16% p.a. | Good credit score, stable cash flow | Yes |
| Equipment Financing | Purchase of machinery, equipment | Up to 75% | 1 – 5 years | Customizable loan structure | 11% – 17% p.a. | Proven track record in business | Yes |
| SME Loan | For small and medium enterprises | Up to 85% | Up to 7 years | Quick processing, flexible tenure | 12% – 20% p.a. | Business turnover and profit criteria | Yes |
| Commercial Vehicle Loan | Purchase of commercial vehicles | Up to 90% | 3 – 5 years | Fast approval, easy repayment | 10% – 15% p.a. | Minimum 2 years of business operations | Yes |
Table of Contents
Eligibility Criteria
| Minimum business operation period | 3 years |
| profits | Positive cash profits for the last 2 years |
| Required documentation | IT returns, balance sheets, bank statements |
| minimum annual turnover | ₹50 lakhs |
Loan Features & Benefits
- Loan Amount: ₹3 Lakh to ₹1 Crore.
- No Collateral Required: Many loans do not require collateral security.
- Minimal Documentation: The process is designed to be hassle-free.
- Quick Loan Approval: Fast processing with doorstep service.
- Flexible Repayment: Options to tailor repayments based on business cash flow.
- Repayment Tenure: Up to 48 months.
- Quick Sanction: Rapid approval and disbursal of funds.
Fees and Charges
| Requirement | Salaried | Self-Employed |
| Processing Fee | ₹2,500 to ₹15,000* | ₹2,500 to ₹15,000* |
| Prepayment Charges | Up to 5% of principal | Up to 5% of principal |
| Late Payment Fee | ₹500 to ₹1,000 per instance | ₹500 to ₹1,000 per instance |
| Documentation Charges | As applicable | As applicable |
| Bounce Charges | ₹500 per instance | ₹500 per instance |
Required Documents
To apply for a business loan, you will need:
- Identity Proof: PAN Card, Driving License, Passport, Voter’s ID, Aadhaar Card.
- Address Proof: Passport, Driving License, Voter’s ID, Aadhaar Card, Utility Bill, Bank Statement, or Bank Account Passbook (updated and not more than 3 months old).
- Ownership Proof: Agreement Copy, Electricity Bill, Maintenance Bill with share certificate, Municipal tax bill, or Share certificate.
- Business Continuity Proof: Shop and Establishment certificate, Tax registrations (VAT, Service tax, GST registrations).
- Firm Constitution: MOA, Partnership Deed, GST Registration Certificate.
EMI Calculator
Kotak Mahindra Bank provides an EMI calculator to help applicants estimate their monthly payments based on the loan amount, interest rate, and tenure.
Application Process
To apply for a business loan at Kotak Mahindra Bank:
- Click on ‘Apply Now’.
- Provide personal and income details.
- Select ‘Kotak Mahindra Bank’ from the list of lenders.
- Choose the preferred loan amount and repayment tenure.
- Submit the application.
Following the verification, an executive will contact you for further proceedings.
Comparison with Other Banks and NBFCs
| Bank | Interest Rate | Processing Fees | Loan Tenure | Prepayment Charges | Collateral Requirement | Approval Time | Special Features |
| Kotak Mahindra Bank | 8.70% p.a. onwards | Up to 1% of the loan amount | Up to 25 years | Up to 5% of the principal | Required | 7-10 days | Doorstep service |
| SBI Bank | 8.5% p.a. onwards | 0.35% of the loan amount | Up to 15 years | 3% of the principal | Required for large amounts | 7-10 days | Easy overdraft facility |
| HDFC Bank | 8.7% p.a. onwards | Up to 2% of the loan amount | Up to 10 years | 4% of the principal | Usually required | 5-7 days | Pre-approved offers for customers |
| ICICI Bank | 8.85% p.a. onwards | 0.5% – 1% of the loan amount | Up to 12 years | 3% of the principal | Required | 5-7 days | Customizable loan structure |
| Punjab National Bank | 8.40% – 12.10% p.a. | 0.5% – 1% of the loan amount | Up to 15 years | 2% of the principal | Required | 8-10 days | Quick processing time |
| Bajaj Housing Finance | 8.50% p.a. onwards | Up to 1.5% of the loan amount | Up to 15 years | 2% of the principal | Required | 5-7 days | Quick loan approval |
| Axis Bank | 8.75%-13.30% p.a. | Up to 2% of the loan amount | Up to 10 years | 3% of the principal | Required | 5-7 days | Flexible repayment options |
| Bank of India | 8.4% p.a onwards | 1% of the loan amount | Up to 15 years | 3% of the principal | Required | 7-10 days | Easy documentation |
| TATA Capital | 8.75% p.a. onwards | Up to 1.5% of the loan amount | Up to 12 years | 4% of the principal | Usually not required | 5-7 days | No collateral required |
