Loan for any business is very important which can be utilized to set up a new business or expand an existing one. Lot of financial institutions and banks are there to cater to the need of the business houses/ firms by proving them loans. Kotak Mahindra Bank is one of the eminent banks of the country providing banking solutions to its customer through its wide network. The bank has financial solution to cater to the all sectors of the business including agriculture, manufacturing and service provider.
Business loans provided by Kotak Mahindra Bank
1. Loan Against Property
- The loan amount can be taken from Rs.10 lakh to maximum Rs.3crore.
- Commercial, residential and industrial property can be kept as collateral for the loan amount.
- The fund can be used for debt consolidation, education, emergency, expansion of existing business etc.
- Loan against property can be taken in the form of term loan as well as overdraft facility.
2. Business Loan
- The business loan amount ranges from Rs.3 lakh to maximum Rs.2 crore.
- The repayment options are very flexible.
- Kotak Mahindra Bank offers minimal paperwork along with easy EMIs.
- For banking related query, the bank offers convenient door step services in order to make it more feasible for the loan applicants.
Eligibility Criteria for Kotak Mahindra Business Loan
To apply for a business loan from Kotak Mahindra bank, below are the eligibility criteria –
- The loan applicants should have an annual business turnover of Rs.2 crores.
- Manufacturers who are willing to apply for a business loan should have an annual business turnover of Rs.1 crore.
- The loan applicant should be in the business for the last three years along with the business profit and loss sheet of two years
- Service Providers should also have annual turnover of Rs.50 lakh
Kotak Mahindra Business loan Interest Rate and Charges
Current Business loan interest rate and charges are as follows as:
|Services||Fees and Charges|
|Interest Rate||16.00% to 19.99%|
|Processing Charges||Maximum 3% of the loan amount plus the applicable GST (Non Refundable)|
|Documentation Charges||Maximum Rs.5000 plus applicable GST|
|Prepayment Charges||6% of foreclosure loan amount with a lock in period of 12 months from the date loan agreement plus applicable GST charges.|
Documents Required for Kotak Mahindra Business Loan
Following are some of the documents that are required to apply for a business loan:
- Proof of Identity (Aadhaar, PAN, Driving License, Voter ID)
- Proof of Address (Passport, Voter ID, Aadhaar, Bank Statements)
- Proof of Income (Income Tax Returns, Business Profit and Loss sheet)
- Loan Application along with photographs
3. Commercial Vehicle Financing
- Commercial Vehicle Financing provides customized solutions to the commercial vehicle owners and transporters.
- Finance is issued for expansion of both new vehicle and used vehicle, or to top up the existing loan, or to provide working capital loan, or to educational institutes for the purchase of commercial vehicles and etc.
- The tenure of the loan is 12 months to 60 months.
- Individuals/ company/ partnership firms with minimum two years of experience in business residing in the approved locality for the last two years are eligible for this loan. The bank at its discretion can issue loan to the fresh entrants.
4. Crop Loans
- The objective of this loan is to provide working capital to farmers to meet the expenses like cost of cultivation, development of the farm, cost of inputs and etc.
- The loan process is very easy and the sanction turnaround time is also very fast.
- The loan amount for costly value crops can be high also.
- All farmers whose age is 18 years to max 75 years at the maturity of the loan can avail for this loan. The loan can be taken on sole responsibility as well as on joint responsibility. Max 5 members can avail for loan on joint. Crop loan also offer extended facilities of Kisan Credit Card and Agri Term Loan
5. Farm Equipment
- This loan scheme is for the farmers who want funds to purchase tractors, equipment, harvesters, sprayers, threshers, dusters, loaders etc. to help in the production of the crops.
- This loan is available for the individual who already has a banking relationship with the bank.
- The bank network is huge thus making the loan accessible to all.
- Along with this loan the applicant can also avail Kotak Kisan Suraksha which is an insurance policy meant for the farmers
- The applicant should have minimum 3 acres of land in his name and should be residentially established for last 2 years and also minimum 2 years of experience in the field.
6. Agriculture Project Loan
- Dedicated relationship manager for the loan facility to guide and help the applicant in any financial issue related to the bank.
- Finance of the overall project cost.
- Wide network of the bank thus allowing easy loan access
- Project assessment and calculation ability by the bank.
- All MSME, farmers, traders and exporters, aggregators and processors involved in the agriculture business can apply for this loan scheme.
- The loan can be taken for long term, to finance the dealers, finance the suppliers, loan to promoters involved in agricultural project.
7. Construction Equipment/ infrastructure Finance
- Easy documentation
- New entrants can also apply for this loan at the discretion of the bank.
- Up 100% of financing.
- All individuals/ company/ partnership firm with 1 year of business experience and resident in the approved locality for last 2 years can avail for this particular loan.
8. Working Capital Loan
- This loan is offered so that the business can meet its daily operations without any financial constraints
- Five types of working capital loans are offered by the bank which include dealer finance, agri SME business, channel finance, facility against credit card receivables and transportation, logistics and warehouse loans
- The loan tenures are flexible and loan amounts have a wide range
- Simple documents are required to avail any type of working capital loan offered by the bank
- A dedicated relationship manager is assigned to help businesses understand their loan requirements, apply for the loan and then avail the loan at the shortest possible time.
How to Apply for Kotak Mahindra Business Loan
Kotak Mahindra offers multiple business loan products that cater to different sections of business aspects. If you are looking for options and want to apply for a business loan, you can visit at Paisabazaar.com where all the comparisons of banks business loans along with interest rate and features are available. All the business loan products offered by the banks and NBFCs can be compared here at Paisabazaar.com
So, Kotak Mahindra Bank offers a range of business loans for small and large businesses for their financial requirements with competitive interest rate and features.
Frequently Asked Questions (FAQ)
Q. What are the different business loan products that Kotak Mahindra Offers?
Ans. Some business loan products that the bank offers are:
- Loan against Property
- Crop Loan
- Business Loan
- Commercial vehicle loan
- Farm Equipment loan
- Working Capital loan
- Agricultural Project loan
Q. What are the interest rate charges on business loan offered by Kotak Mahindra Bank?
Ans. Interest Rate of Kotak Mahindra Bank ranges from 16.00% to 19.99
Q. What is the loan amount that Kotak Mahindra offers on business loan?
Ans. The loan amount starts from Rs.3 lakh up to Rs.3 crore, with terms and conditions set by the bank