To help customers grow their business, Kotak Mahindra Bank Ltd. offers a wide range of business loans. The interest rate on business loans from Kotak Mahindra Bank is competitive, attractive, and reasonably priced. With the help of this loan, you can take your company closer to its bright future thanks to Kotak’s quick loan approval and application process.
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Overview of Business Loan at Kotak Bank
In the contemporary world, managing a business is a crucial responsibility. To survive in today’s tough markets, one needs proper qualifications, perseverance, and capital. A company loan with an effective interest rate comes in handy under such circumstances. A company loan creates a mortgage, which, like any other loan, must be returned with interest.
Funding your firm’s expansion is the best justification for applying for a small business loan. It will also give you a chance to adjust to the demands of the industry. Kotak Mahindra Bank Ltd. offers various business loans to help customers grow their businesses. The interest rates on business loans offered by Kotak Mahindra Bank are reasonable, attractive, and competitive.
With the help of this loan, you can take your company closer to its bright future thanks to Kotak’s quick loan approval and application process. This article will give you all the information you need to know about Kotak business loans, including how to apply for a business loan from Kotak Mahindra Bank. Check out Bank of Baroda Personal Loan.
Features and Benefits of Business Loan from Kotak Mahindra Bank
The features and benefits offered by this loan are as follows:
- The minimum loan amount for this loan is ₹50,000 and the maximum loan amount is up to ₹75 lakh.
- Easy application process.
- Quick loan approval.
- Flexible terms for repayment.
- Repayment period up to 48 months.
- There is no need for any kind of collateral to apply for a business loan from Kotak Mahindra Bank.
- The loan amount is approved instantly.
- For the loan, minimum documents are required.
- Doorstep service for Kotak Business Loan.
- The bank offers business loans at some of the lowest interest rates. Interest rates at Kotak Mahindra Bank start at 13% per annum. Interest rates for Kotak business loans may vary depending on several criteria including the applicant’s age, type of business, income, and CIBIL score.
Eligibility for Business Loan from Kotak Mahindra Bank
The bank has set specific eligibility requirements for borrowers. Following is the list of criteria that Kotak Mahindra Bank has determined and established for business loan eligibility.
- The business/company must earn a revenue of Rs 40 lakh annually.
- The candidate must have operated the business for at least three years.
- In the previous year, the company should have made a profit.
- The maximum age for loan maturity is 65 years, while the minimum age to apply for the loan is 25 years.
- One of the following must apply Trust, limited liability partnership, proprietorship, partnership firm, or private limited company. It must operate in the trading, service, or manufacturing industries.
Types of Business Loans from Kotak Mahindra Bank
Business Loan
- Interest Rate: Starts at 13% per annum.
- Maximum Loan Amount: ₹75 lakhs.
- Repayment Tenure: Up to 48 months.
- Collateral: No collateral is required.
- Processing Fee: 2% of the loan amount.
- Benefits: Minimal documentation and easy EMI options.
Commercial Vehicle Financing
- Purpose: Customized financing solutions for transporters and vehicle owners to purchase or rent new or used commercial vehicles.
Additional Uses: Can also be used for top-up loans or working capital.
Eligibility: Available for educational institutes as well. Partnership firms, companies, or individuals with a minimum of 2 years in business can apply. - Repayment Tenure: Up to 48 months.
Farm Equipment Loan
- Purpose: For farmers looking to purchase farm equipment for crop production.
Eligibility: Farmers with an existing relationship with the bank, owning a minimum of 3 acres of land, and at least 2 years of experience.
Location: Available across India.
Additional Benefits: Farmers can also avail of the Kotak Kisan Suraksha insurance policy.
Agricultural Project Loan
- A dedicated relationship manager for financial guidance.Comprehensive project cost financing.
- The bank handles project calculation and assessment.
- Available to all individuals involved in agriculture.
- Long-term repayment tenure for dealers, suppliers, and promoters.
Crop Loans
- Purpose: Working capital for farmers to cover all farming-related expenses.
Eligibility: Available to farmers aged 18 to 75 (at loan maturity).
Benefits: High loan amounts for high-value crops, and fast processing time. Also provides access to Agri Term Loan and Kisan Credit Card benefits. Special - Feature: Can be availed by a group of 5 farmers on a joint basis.
Working Capital Loan
- Purpose: Helps businesses meet daily operational needs and avoid financial constraints.
- Benefits: Offers a wide range of loan amounts with flexible repayment terms.
- Documentation: Requires simple documents for processing.
Construction Infrastructure/Equipment Financing
Benefits: Minimal documentation and 100% financing for construction.
Eligibility: Open to new entrants at the bank’s discretion. Applicants must have at least 1 year of business experience and reside in an approved locality.
Factors Affecting the Interest Rate on Business Loan from Kotak Mahindra Bank
The interest rate on business loans from Kotak Mahindra Bank is affected by a few different factors. Before applying for a business loan from Kotak Mahindra Bank, confirm the following elements that can have an impact on the interest rate. These elements include the following:
- The CIBIL score is one of the most essential elements. Having a high CIBIL/credit score (750 or above) can lead to a lower interest rate on the loan and vice versa.
- Another important element is age. The interest rate on a business loan from Kotak Mahindra Bank will be lower for younger applicants.
- The loan tenure and its amount are additional determining factors for the interest rate.
- Experience and type of business are two other essential elements for the bank. A well-established company and a strong business model are required to get favorable terms on a Kotak Mahindra Bank business loan.
- If you already have a positive working relationship with Kotak, you may be able to negotiate a favorable interest rate.
Documents required for business loan from Kotak Bank
Before applying for a business loan from Kotak Mahindra Bank, you should review the list of papers the bank requires. Below is the paperwork required for a business loan from Kotak Mahindra Bank.
- Verification of identity
- Proof of address
- Proof of business ownership (utility/maintenance bills, copies of contracts, municipal tax bills, share certificates)
- Proof of business continuity (shop and establishment certificate, VAT, service tax, and GST registration)
- Original firm documents (MOA, GST registration certificate, partnership deed)
- Additional paperwork required by the bank depending on the type of company loan
Customer Care Number for Business Loan
If you have any queries regarding the loan or interest rate on Kotak Mahindra business loan and want more information, contact their customer care staff at 1860-266-2666 or 1800-209-5600.
