Kotak Business Loan Interest Rate Jul 2020

Kotak Bank offers loan to self employed and businessmen for financing the expansion or working capital requirements of their business. There are some benefits of taking loan from Kotak Bank:

• You can foreclose your entire Business loan anytime after paying 0 EMI's at foreclosure charges - 5% charges
• Kotak Bank has over 606 branches in India where you can avail service

There are multiple factors on which basis bank calculates your interest rate. Some of these factors are -

• Loan amount: Business loan rate in Kotak Bank depends upon the loan amount you apply for. Higher the loan amount, lesser will be the interest rate. Bank gives loan of minimum ₹ 3 Lakh to upto ₹ 75 Lakh. Interest rate for high loan amount can be lower resulting in lower EMIs.
• CIBIL Score: Kotak Bank offers loan at higher interest rate if your CIBIL score is low or vice versa. However, to get loan from Kotak Bank, your CIBIL score should be atleast 700. Higher the CIBIL Score, higher the chances of getting a loan at lowest business loan interest.
• Revenue: Kotak Bank will offer you loan at lower interest rate if you have higher monthly revenue. Bank gives loan to the borrowers whose annual turnover is at least ₹ 50,00,000.
• Time in Business: Kotak Bank offers loan at lower rates if you have significant business experience. Minimum business existence to get loan from Kotak Bank is 36 months.

Bank have a detailed criteria to determine the eligibility of a borrower for business loans. Some of the key criteria are:

Eligibility Criteria	Description
Age:	25 to 65 years
Minimum Turnover	₹ 50,00,000
Business Existence (in months)	36 months
ITR (months)	24 months
Loan Amount	₹ 3 Lakh to ₹ 75 Lakh
Loan Tenure	60 months
Owned House or Place of Work	Not Required
CIBIL Score	750 and above

Eligibility of Business loan in Kotak Bank relies on two important factor:

1.Your ability to repay the loan and
2.Your past track record in repayment of loans.

The main factors on which the eligibility of an applicant depends are

• Age: Age plays an important role to know your eligibility and repayment capacity. Kotak Bank offers loan to those who are at least 25 years old at the time of loan approval and maximum 65 years at the time of loan maturity.
• Loan Amount: Based on the loan amount eligibility, bank gives you loan ranging from ₹ 3 Lakh to ₹ 75 Lakh. To improve chances of approval, apply for a loan amount that you can comfortably service.
• Profitability and Revenue: Loan eligibility significantly depends upon profitability on your turnover, revenue and profitability. Kotak Bank requires profit for minimum 2 years and minimum business turnover of ₹ 50,00,000.
• Business Stability: Future business prospects and its stability is important to improve your eligibility for business loan. Kotak Bank requires minimum business track record of 36 months. The bank will also look for minimum growth in sales for the last three year. A decline in sales for a certain period or below a certain limit might impact your eligibility to get loan.
• ITR and Banking: Bank gives loan only after checking your income tax return and bank statements. Your ITR details for minimum 24 months and bank statement for minimum 6 months will be required by Kotak Bank.
• CIBIL Score: When checking loan eligibility, Kotak Bank will look at the complete CIBIL report. Kotak Bank will check your repayment history for all current and past loans and credit cards. Bank advise you to maintain a score of 750 and above to get loan approval.

Kotak Bank Business Loan EMI is a fixed amount that you pay each month towards the repayment of your loan till the end of tenure. Lowest EMI offered by Kotak Bank is ₹ 0.01 Lakh per lakh loan amount. EMI of Kotak Bank depends on factors like:

• Interest Rate: Higher the interest rate, higher will be the EMI. For a 60 months loan from Kotak Bank at an interest rate of 16.00% per annum, EMI will be ₹ 0.01 Lakh per Rs. one lakh loan amount. At an interest rate of 19.99% for the same loan, the EMI will be ₹ 0.02 Lakh.
• Loan tenure: Longer the loan tenure, lesser your smonthly EMI. At interest rate of 16.00% per annum, the EMI on Kotak Bank business loan would range from ₹ 0.01 Lakh to ₹ 0.01 Lakh for loan tenure ranging from 24 to 60 months.
• Amount Borrowed: Kotak Bank Loan EMI will be high if you apply for a high loan amount. For amount borrowed ₹ 3 Lakh, the EMI at 16.00% for 60 months would be ₹ 0.04 Lakh. Similarly for amount borrowed ₹ 75 Lakh, the EMI at 16.00% for 60 months would be ₹ 0.01 Cr.

• Business loan EMI calculator of Kotak Bank helps you to calculate your monthly EMI at different rate of interest
• Kotak Bank EMI calculator helps you to know your capacity to repay the loan after meeting your regular monthly expenses
• You get a rough idea about your monthly EMI and can plan your monthly budget accordingly

Kotak Bank offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Description

• Kotak Bank provides loan for business expansion, to established businesses and budding businessmen to fund the business capitals. The loan amount can range from Rs 3 lakhs to Rs 75 lakhs and can be borrowed without any collateral.
• The loan is taken to fix the capital needs of an existing business.

Who is eligible?

• The business loan applicant must have been in business for the last three years.
• Minimum turnover of Rs 40 lakhs is required.
• The business is expected to earn a profit of a minimum of 1 year.
• The loan can be taken for a maximum tenure of 60 months.
• This loan can be taken by partnership firms, sole proprietors, private limited companies, or trusts, whether involved in sectors like manufacturing, trading or services.

Description

• Get unsecured overdraft up to Rs. 50 lakhs
• Pay only interest on the utilised amount
• Easy access of funds for the growth of business
• This is an overdraft scheme to meet business needs and emergencies.
• No collateral required

Who is eligible?

• 6 months old current account with Kotak Bank and 3 years of business existence

Description

• Offers customer the option to pay only interest during the moratorium period, and thereafter, pay moderated EMIs.
• The EMIs will be stepped up during the subsequent years.
• Option of selecting moratorium of upto 36 to 60 months. Only interest to be repaid during the selected moratorium period.
• Eligibility is higher for self employed
• Get business loan up to Rs. 3 crore
• Option of combining overdraft and loan
• Under this scheme, a merchant owner can either take business loan or overdraft facility based on the yearly sales on a credit card POS machine.
• No collateral required

Who is eligible?

• Salaried applicants with minimum 2 year experience and aged between 21 to 45 years will be eligible to avail this loan.
• Credit card sales should be more than Rs. 60 lakhs with 3 years business existence
• Sole Proprietorship Firms, Partnership Firms, Private and Public Limited Companies

In addition to interest rates, business loan also carry some other charges which include:

• Foreclosure Charges- These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. Kotak Bank allows prepayment of loan after paying 0 EMI’s with prepayment charges - 5% charges
• Processing Fee- Kotak Bank asks for a processing fee of Upto 2% with applicable service tax

• Address proof of individual: Aadhaar Card, Voter’s ID Card, Bank statement, registry copy, rent agreement , utility bills
• Identity proof of individual: Passport, Driving License, PAN Card, Aadhaar Card, Voter’s ID Card
• Business existence proof: PAN, sales tax/ excise/ VAT/ service tax registration, copy of partnership deed, trade license, certificate of practice, registration certificate issued by RBI, SEBI
• Copy of Income Tax PAN for 24 months
• Bank statement of last 6 months

✅Why to take business loan from Kotak Bank?

Bank offers loan at 16.00% rate with the lowest EMI of ₹ 1,333 per lakh. If you are paying EMI more than this then you can opt for balance transfer and relocate your loan to Kotak Bank.

✅What is the interest charged on Kotak Bank business loan?

Interest rates on Business loan in Kotak Bank are very attractive starting from 16.00% to 19.99%. Bank offer various offer for self employed professionals to get loan at very low rate of interest.

✅What is the lowest EMI per lakh on business loan from Kotak Bank?

If you apply for loan from Kotak Bank, your lowest EMI per lakh will be ₹ 1,333.

✅What is the minimum and maximum tenure of business loan in Kotak Bank?

These loans are shorter tenure loans. You can repay your loan in a flexible period of minimum 24 months to maximum echo 60 months.

✅How much business loan amount I can borrow from Kotak Bank?

Kotak Bank offers you loan if you need a minimum amount of ₹ 3 Lakh to a maximum amount of ₹ 75 Lakh.

✅What is the processing fee charged by Kotak Bank on business loan?

Kotak Bank charges a processing fee of Upto 2% with applicable tax.

✅Is age an eligibility factor to get loan for business from Kotak Bank?

Yes, age is an important eligibility factor to get loan as you should be at least 25 years old at loan approval time and 65 years old at loan maturity time.

✅What are the prepayment charges on business loan from Kotak Bank?

Bank charges a fee in case you want to repay your entire loan amount before the end of tenure period. The fee charged by Kotak Bank is 5% charges.

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