Kotak Mahindra Bank Business Loan
We all know that starting or growing a business requires financial support. Since this financial support often comes with an obligation to borrow huge funds, it becomes essential to take a business loan that provides both competitive interest rates and comfortable repayment options.
Kotak Mahindra Bank serves the combination of both these characteristics in their business loans, making it an attractive and trustworthy choice for all businesses. This article will explore everything about a Kotak Mahindra bank Business Loan, helping you to make informed decisions about your business’s financial requirements.
Kotak Mahindra Bank Business Loan Interest Rate, Fees & Other Charges
The interest rate, processing fees, and other charges of the Kotak Mahindra Bank Business Loan are given below:
| Particulars | Charges |
|---|---|
| Interest Rate | Starts from 17% |
| Processing Fee | 2% of loan amount + Tax |
| Documentation Charges | Loan amount less than or equal to INR 10 Lakhs- INR 3,500 + Tax Loan amount more than INR 10 Lakhs- INR 6,000+ Tax |
| Prepayment Charges | 4% of the outstanding amount + Tax |
| Cheque Dishonor Charges | INR 750 + Tax |
| Charges for a copy of any document | INR 500 + Tax |
| Swap Charges | INR 500 + Tax |
| Charges for No Dues Certificate | INR 500 + Tax |
| Collection Charges | Up to 3% + Tax |
| Penal Interest | Up to 3% + Tax |
| Termination Charges | Up to 4% + Tax |
Table of Contents
Features & Benefits of Business Loan
The Kotak Mahindra Business Loans are customisable according to the business’s need and ability to repay the loan amount. The bank provides business loans to established businesses as well as budding entrepreneurs. Some of the Benefits and features of Kotak Mahindra Business Loan are listed below:
- The Bank serves the financial needs of small, medium and large enterprises by providing business loans starting from INR 3 Lakhs and going up to INR 75 Lakhs.
- Kotak Mahindra Bank also provides unsecured business loans which do not require the loan applicant to pledge any collateral.
- The loans provided by the bank are quick when it comes to approval and hassle-free when it comes to application.
- The bank provides flexible repayment options of up to 48 months to make stress-free repayments.
Kotak Mahindra bank Business loan EMI Calculator
Eligibility Criteria for a Kotak Bank Business Loan
The eligibility requirements to avail a Kotak Mahindra Bank Business Loans are:
- The age range of the loan applicant must be between 25 to 65 years (25 years in the case of a doctor).
- Entities including Partnership Firms, Sole Proprietors, Trusts, Limited Liability Partnerships, and Private Ltd Companies associated with the business of Trading/ Manufacturing/Services are qualified for a Kotak Mahindra Business Loan.
- The business must have a minimum turnover of INR 40 lakhs.
- The company should have been profitable for at least a year.
Also Read: Business Loan eligibility criteria in Detail
Documentation Required For Kotak Business Loan
The following documents are required to avail a Kotak Mahindra Bank Business Loan:
- Proof of Identity ( PAN Card / Driving License / Passport / Voter ID / Aadhar Card )
- Address Proof ( PAN Card/ Driving License / Passport / Voter ID / Aadhar Card/utility bills )
- Ownership Proof (Agreement Copy / Electricity Bill / Share Certificate / Municipal Tax Bill)
- Business Continuity Proof (Shop and Establishment Certificate / Service Tax / VAT / GST Registrations)
- Firm Constitution (MoA / Partnership Deed / GST Registration Certificate)
- Latest financials (Last 2 Years)
- Latest Tax Audit Report
- Bank Statements (Last 6 Months)
How to apply for a business loan with Kotak Mahindra Bank
You can apply for a Kotak Mahindra Business Loan by visiting the nearest bank branch. You can also apply for a business loan online on the bank’s website. However, eligibility and the credit score must be checked beforehand. The loan application form must be filled out, the documents required need to be submitted, and the application would then be evaluated by the bank.
Factors Responsible for Business Loan Interest Rate
Kotak Mahindra Bank provides business loans at an interest rate ranging from 17%. From an applicant’s perspective, it is highly essential to avail a business loan at a good interest rate and flexible repayment tenure. As the loan amount is usually high in the case of business loans, there are several factors that affect the Kotak Mahindra Bank Business Loan interest rates.
These are:
- The CIBIL Score of the business owner or the company.
- Category of the business
- Business Vintage
- Profit and Annual Turnover of the business
Frequently Asked Questions
Does the bank have foreclosure charges on the prepayment of the Business loan?
Yes, the bank has foreclosure charges of 4% on the prepayment of the Business loan.
What is the interest rate for Kotak Mahindra Bank Business Loan?
The interest rate for the Kotak Mahindra Bank Business Loan currently starts from 17%.
How can you avail the Kotak Mahindra Bank Business Loan account statement?
You can avail the Kotak Mahindra Bank Business Loan account statement by logging into the bank’s mobile application or the Internet banking portal and downloading it.
What is the maximum business loan amount that can be availed from Kotak Mahindra Bank?
The maximum business loan amount that can be availed from Kotak Mahindra Bank is INR 75 Lakhs.
What is the maximum repayment tenure for Kotak Mahindra Bank Business loans?
The bank offers a maximum repayment tenure of 60 months.
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