Kotak Mahindra Business loan is one of the country’s leading offers to consumers commercial and MSME loans with interest rates starting at 16 percent. The bank offers financial solutions to most business sectors, with loans up to Rs. 75 lakhs available to cover working capital needs.
Kotak Mahindra Business Loan Details
|Interest Rate||16% onwards|
|Min. loan amount||Rs. 3 lakhs|
|Max. loan amount||Rs. 75 lakhs|
|Processing Fee||2% of the loan amount + GST|
|Collateral / Security||Not required|
|Repayment Tenure||Up to 48 months|
|Documentation Charges||Loan amount less than Rs. 10 lakhs Rs. 3500 and more than Rs. 10 lakhs is Rs. 6000 + GST|
|Part-payment||Not available for business loans|
Types and Features of Business Loans
- Loan for a business
- The Kotak Mahindra Bank business loan is 16 % and up.
- The amount of a company loan might range from Rs. 3 lakhs to Rs. 75 lakhs.
- The repayment period can be as long as 48 months.
- There is no requirement for a security deposit.
- 2% of the loan amount as a processing fee
- Kotak Mahindra Bank offers simple EMIs and minimum paperwork.
- Financing for Commercial Vehicles
- Commercial Vehicle Financing offers commercial vehicle owners and transporters tailored financing options.
- Finance is provided for the expansion of new and used vehicles, as well as to top up existing loans, give working capital, and to educational institutions for the purchase of commercial vehicles, among other things.
- The business loan is for a period of 12 to 60 months.
- Individuals, companies, and partnership organizations having at least two years of business experience and two years of residence in the specified locality are eligible for this loan. The bank has the option to lend to new entrants at its discretion.
- Crop loans
- The goal of this loan is to give farmers operating money to cover expenses such as cultivation costs, farm development costs, input costs, and so on.
- The loan application process is simple, and the approval time is quick.
- The loan amount for high-value crops can be large, and the bank has a large network, making it easier to get a loan.
- Farm Machinery
- This loan program is for farmers who need money to buy tractors, equipment, harvesters, sprayers, threshers, dusters, loaders, and other tools to aid in crop production.
- This loan is only offered to those who have an existing banking relationship with the bank.
- The bank network is extensive, making the loan available to everybody.
- Loan for Agriculture Projects
- Dedicated relationship manager for the loan facility to guide and assist the applicant with any bank-related financial issues.
- The cost of the entire project is financed.
- The bank’s extensive network makes it possible to obtain a loan quickly.
- The bank’s ability to examine and calculate projects.
- Infrastructure/Construction Equipment Financing
- Documentation is simple.
- At the bank’s discretion, new entrants may also apply for this loan.
- 100% of the funds are available.
- Individuals, companies, and partnership firms with one year of business experience and two years of residency in the authorized area are eligible for this loan.
- A loan for working capital
- This loan is being granted so that the company can continue to operate without financial restraints.
- Dealer finance, SME company, channel finance, facility against credit card receivables, transportation, logistics, and warehouse loans are among the five categories of working capital loans issued by the bank.
- The loan terms are adjustable, and the loan amounts are varied.
- To obtain any sort of working capital loan supplied by the bank, simple paperwork is necessary.
- A dedicated relationship manager is assigned to assist firms in understanding their loan requirements, applying for the loan, and getting the loan in the lowest amount of time feasible.
Kotak Mahindra Bank Business Loans Documents Required
Along with your Business Loan application, you’ll need the following documents:
- PAN Card – Individual/Company/Firm
- As proof of identity, a copy of any of the following documents:
- Voter’s ID Card
- Aadhaar Card
- Driving License
- PAN Card
- As evidence of address, a copy of any of the following documents:
- Voter’s ID Card
- Aadhaar Card
- CA Certified/Audited Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate) Driving License Bank statement for the last 6 months Latest ITR with computation of income, Balance Sheet, and Profit & Loss account for the preceding 2 years, after being CA Certified/Audited
- Other Required Documents [Sole Proprietorship Declaration or Certified Copy of Partnership Deed, Certified authentic copy of Memorandum & Articles of Association (certified by Director), and Original Board Resolution]
What Are the Benefits of Business Loans?
The following are the most prevalent reasons for taking out a business loan:
- Expansion of Business
When you believe your business has grown large enough and scaling up at this time is a chance you do not want to pass up, you can buy land or lease a property to expand operations. A firm can expand operations more than once based on its growth expectations.
- Invest in Equipment
In the information age of business, technology has become a crucial driver, and because technology has an expiration date, there is always a requirement to purchase or upgrade existing equipment and technology.
Purchasing, leasing, or updating new equipment that will aid in improving the organization’s output or operations; alternatively, the equipment can be leased; it is best to undertake a cost-benefit analysis to determine whether to buy or lease. Apart from the first-year tax benefits, the advantage of purchasing equipment is that depreciation can be claimed each year.
- Inventory purchase
Small businesses frequently require fast funding to purchase inventory goods or raw materials. There may be times when market demand for your goods is extremely high. Businesses may not have the financial resources to procure the raw materials required to meet the increased demand. Individuals and enterprises can tackle this difficulty by taking out loans to purchase the inventory required for production.
- Boosting working capital
Small enterprises and entrepreneurs frequently lack sufficient working capital to carry out their daily operations. They’ll take out short-term loans until their own assets generate enough money to cover their operating costs.
- Enhance your credit history
If a corporation wants to take out a larger loan, it must first establish a strong credit history. To ensure this, individuals or business owners obtain short-term loans and repay them on time in order to strengthen their credit history. Favorable credit history is the result of the timely repayment of debts.
To conclude, the Kotak Mahindra Business loan can be a great support for your business. So, if you are looking for some extra funds to grow your business or going through a rough patch in business then come to Afinoz and apply for a business loan at a low interest rate.