Kotak Mahindra Bank

Kotak Mahindra Bank Business Finance

Kotak Mahindra Bank

Kotak Mahindra Bank Limited is a company providing banking and financial services.  Its headquarters is in the city of Mumbai, India.

It offers its services to corporate customers and also to retail customers in terms of personal finance, investment banking, life insurance, and wealth management.

There are various subsidiaries available to this financial institution which includes:

  • Kotak Securities
  • Kotak AMC
  • Kotak Mahindra Prime
  • Kotak Mahindra Capital
  • Kotak Mahindra Investments
  • Kotak Mahindra Life Insurance
  • Kotak Investment Advisors
  • Kotak Mahindra General Insurance
  • Kotak Capital Company

Services provided by the Kotak Mahindra Bank are:

Credit card services:

  • The amount payable / Outstanding as per the last statement
  • Due Date
  • PIN Regeneration
  • Available Limit Enquiry
  • Transaction history
  • Switch On
  • Switch Off
  • Permanent Block
  • Payment on own credit card bill
  • Apply for New Credit Card
  • Credit card upgrade
  • Replacement of Card

Debit card services:

  • PIN Regeneration
  • Reissue / Replacement of Card
  • Switch On
  • Switch Off
  • Switch On (International)
  • Switch Off (International)
  • Permanent Block
  • Debit card upgrade
  • Apply for Image Debit Card
  • Apply for New Debit Card

Tracking services:

Tracking of your credit card, debit card, cheque book, PINs (or debit card, phone-banking and net-banking) and more services.

Financial services:

  • Long Term Finance
  • Working Capital Finance
  • Structured Finance
  • Debt Capital Markets
  • Acquisition Finance

What is business finance?

Business finance refers to the funds availed by business owners to meet their needs that may include starting a business, obtaining top-up funds to assist business operations, getting finance to take up capital assets for the business, or to deal with a sudden cash crunch faced by the business.

Planning, analysis, and control of the day to day operations of an organization are responsibilities of the financial manager, who is generally close to the highest of the organizational structure of a firm.

In very large firms, major decisions relating to finance are made by a finance committee. In small firms, the owner-manager usually takes care of the financial operations.

Much of the day-to-day work of business finance is conducted by lower-level staff; their work includes handling cash receipts and disbursements, borrowing from commercial banks on a regular and continuing basis, and formulating cash budgets.

Financial decisions affect both the profitability and the risk of a firm’s operations. An increase in cash holdings, for instance, reduces risk; but, because cash is not an earning asset, converting other types of assets to cash reduces the firm’s profitability.

Similarly, the use of additional debt can raise the profitability of a firm (because it is expanding its business with borrowed money), but more debt means more risk. Striking a balance—between risk and profitability—that will maintain the long-term value of a firm’s securities is the task of finance.

Kotak Mahindra Bank Business Finance

There are business loan facilities available to different kinds of entrepreneurs to assist in the development of their businesses.

In this article, let’s learn more about this type of business finance offered by the Kotak Mahindra Bank.

Overview of the Kotak Mahindra Bank Business Loan

The business loans which are given by Kotak Mahindra Bank are planned in such a way that they suit the needs of many small businesses looking for funds that help them to operate and grow.

For that, the bank offers different kinds of facilities that range from easy repayment options to doorstep service which help decrease the effort the businessman has to put in to get a loan facility.

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.

Who can avail of this Kotak Mahindra Bank Business Loan amount?

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 crores depending on the classification of the business.
  • It will also need to have been in business for at least 3 years.

Why can you use the Kotak Mahindra Bank Loan amount?

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

 The maximum amount of loan 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.

 Eligibility criteria for the Kotak Mahindra Bank loan

  • Self-employed businessmen with an annual turnover of Rs.2 crores
  • Manufacturers with an annual turnover of Rs.1 crore
  • Service Providers with an annual turnover of Rs.50 lakhs
  • Applicant/Borrower has to be in business for the last 3 years continuously, showing a cash profit for the last 2 years

Kotak Mahindra Bank Application Form

The form comprises the following fields:

  • Personal Details
  • Occupational Details
  • Income and Banking Details
  • Loan Details
  • Additional Details regarding assets
  • Priority Sector Category
  • Documents Submitted

Documents required for Kotak Mahindra Bank Business Loan

  • I.T.R. – 2 Years, Balance Sheet and Profit & Loss Account
  • Proof of ownership of Residential or Commercial Property (including Parental Property) in select locations
  • Latest 6 Months Bank statement of Business.
  • Proof of Identity
  • Proof of Residence

What is the Interest rate under this loan?

The bank charges interest at the rate of 15%p.a. The drawer has to pay the interest along with the principal at the rate specified by the bank. The interest amount is distributed and included in the EMI.

Does this loan have any processing fees?

The loan processing fee is fixed at 2% of the loan amount. The applicant has to pay the processing fee to avail of the loan advantage.

 Kotak Mahindra Bank Business Loan Benefits

  • Quick loan approval
  • Simple process
  • Repayment in form of EMIs
  • Minimal Paperwork
  • Online application service