Kotak Mahindra Business Loan

Overview about Kotak Mahindra Business Loan

The business loans that are offered by Kotak Mahindra Bank are designed in such a way that they suit the needs of most small businesses that are looking for funds to help them operate and grow. To that end the bank offers various facilities that can range from easy repayment options to doorstep service that can help reduce the effort the businessman has to put in to get a loan. The bank also offers loans that can either be small as Rs. 3 lakhs or an amount which is much higher than that, depending on the business’s needs. These loans also try to offer quick approval times and minimum documentation facilities to make them easier to take.

What can this loan amount be used for?

The Kotak Mahindra business loans can be used for a variety of purposes by the company. They can either be used to fund expansion of current operations or to provide resources for new projects that a company may wish to take up.

Who can avail this loan?

Though these loans can be used at the discretion of the company taking the loan, they can only be taken by a particular type of company. Such a company, once which is eligible for this loan, must adhere to the following eligibility criteria:

• The company will have to have an annual turnover of Rs. 50 lakhs to Rs. 2 crore depending on the classification of the business.
• It will also need to have been in business for at least 3 years.

What is the maximum loan amount that can be availed?

The maximum amount that the bank will offer under this scheme will be a total of Rs. 75 lakhs. However, the amount sanctioned may depend on a variety of factors and will be provided at the discretion of the bank.

What is the interest rate charged by Kotak Mahindra business loans?

The interest rate that the bank charges is based on a Benchmark Prime Lending Rate. The current BPLR being offered by the bank is 18.25% per annum. The actual interest rate offered for the loan may be slightly higher or lower than this BPLR.

What are the terms associated with Kotak Mahindra business loans?

The availability of these loans is dependent on certain terms and conditions. Some of these are:

• No company that has not been in operation for at least 3 years will be allowed to apply for these loans.
• Even those that apply will have to show cash profits for at least the last 2 years of operations.
• The eligibility of a company for such a loan will also depend on their ability to provide certain document like:
  • Income tax returns for the last two years
  • Balance sheets and profit and loss account for the last two years
  • The bank statement of the company for the last 6 months and
  • Proof of identity and residence of the authorised signatories for the company
• The availability of the loan will also depend on the classification of the business, which in turn will be linked to a minimum annual turnover that the company will have to achieve in order to be eligible for this loan.

How can one apply for this loan?

To apply for this loan, applicants have three choices. One choice would be to call the bank’s helpline and ask for a representative of this product. Another choice would be to apply for the loan online and the third choice is to approach the bank’s branch for the Kotak Mahindra business loan.

Example

To understand how this loan works let’s take the example of Mr. Raj. He is a businessman who owns a company that is looking for such a loan. He wishes to borrow a sum of Rs. 60 lakhs however the turnover of his company is only Rs. 70 lakhs per annum. This may disqualify him for the loan since he would be considered a self-employed individual and would thus have to have a turnover of at least Rs. 2 crore to apply for the loan. However, since his business is classified as a service provide, he will actually be able to apply for the loan since a service provider needs only an annual turnover of Rs. 50 lakhs to be eligible.