Is the interest rate Fixed or variable for business loans?

Business loans offered by Kotak have a fixed rate of interest.

Are there any foreclosure charges for closure of business loan?

The foreclosure charge is 4% of foreclosure loan amount plus applicable taxes

Business Loan Fees & Charges | Processing Fee and Foreclosure| Kotak Bank

Fees & Charges

Nature of charges	Quantum of charges
Default in Payment or where amount drawn beyond the Maximum Overdraft Limit and/or the Drawing Power	Amounts standing unpaid on respective due dates shall attract penal charge at 8% per annum (to be charged for actual no. of days) on overdue amount plus applicable taxes
Prepayment Charges	For Non-Micro and Small Enterprises The borrower shall be liable to pay 4% foreclosure / closure charges of the outstanding (Plus taxes as applicable).

	For Micro & Small (MSE) Enterprises- • Nil charges on fixed rate loans up to 50 lakh (Original Sanctioned limit) • Nil charges on Floating rate loans
Non-utilisation Charges	If average utilization of facility limits for a quarter is below 60% of sanctioned limits, Commitment charges of ₹5.50 per day per lac of unutilized limits (or a part thereof) + applicable taxes.
Charges for Breach of Other Material Terms and Conditions (i.e. breach of any Event of Default conditions (“EOD”) as mentioned in any loan/facility agreement or Sanction Letter or any other agreement or breach of any Specific Conditions mentioned in the Sanction Letter) and not covered specifically in this Schedule.	₹5.50 per day per lac of exposure (or a part thereof) + applicable taxes (to be calculated from the day of breach until complied) In addition to these charges/levies, Bank also reserves the absolute right to recall the limits and demand repayment of all facilities from the borrower.
Delay/ Non-Creation of Security in favor of the Bank by the Borrower/Security Provider (* Refer Notes Below)	The Bank shall levy Penal charges at ₹5.50 per day per lac of exposure (or a part thereof) + applicable taxes for any delay beyond the original due date (“ODD”) as per sanction terms upto 180 days from the ODD. Beyond 180 days delay, the Bank reserves the right to recall the facility (ies) or charge penal charges at ₹11 per day per lac of exposure (or a part thereof) + applicable taxes until the security is created to the satisfaction of the Bank. (The said penal charges shall be calculated on sum of limits of revolving lines and outstanding under non-revolving lines of both fund and non-fund based facilities to which the security extends.)
Charges for Interest Certificate	Free once in Financial year. Thereafter, ₹250/- (plus Taxes as applicable) per instance.
Cheque dishonour Charges	₹750/- (Plus Taxes as applicable) per instance.
Delay in submission of Documents under deferral	₹2500/- per month + applicable taxes per CRN The penalty would be applicable after 15 Days from the due date until receipt of the respective document to the satisfaction of the Bank.
Non-closure of account with other bank (unless specific permission is taken), wherever stipulated	₹5000/- per month + applicable taxes
Delay in Stock Audit wherever stipulated	₹5000/- per month + applicable taxes
Delay in Stock Audit wherever stipulated	Penalty will be applicable after 60 days from the due date until receipt of the stock audit report to the satisfaction of the Bank.
Delay in submission of Book Debt & Stock Statement wherever stipulated	₹5000/- per month + applicable taxes
	Penalty will be applicable if the statement is not submitted on due date until the receipt of the statement.
	If submission is not received 15 days beyond the submission due date, Bank may also drop the drawing power at its absolute and sole discretion.
Delay/ Non-submission of Stock / Property insurance policy wherever stipulated	Upto ₹10 crs exposure - ₹5000/- per month + applicable taxes
	Above ₹10 crs exposure - ₹10000/-per month + applicable taxes

	Timelines for submission:
	Cover note: 15 days from expiry of existing policy;
	Renewed policy: 30 days from expiry of existing policy
	for Takeover cases: Insurance policy to be submitted within 45 days from the date of first disbursement

	Delay in submission of more than 60 days will result in reductions of limits at the absolute and sole discretion of the Bank.

Schedule of Other Charges

Nature of charges	Quantum of charges
Processing Fee (Non-refundable)	Maximum 2% of the loan / facility amount (Plus Taxes as applicable)
Processing Fee (Non-refundable)	NIL Processing Fees for total loan facility up to ₹5 Lakhs availed by micro and small Enterprises subject to URC submission prior to disbursal
Annual Review / Renewal Charges	Up to 2% of renewal limit (Plus Taxes as applicable)
Documentation Charges	Loan amount up to ₹10 lakh: ₹3,500/- (Plus Taxes as applicable)
Documentation Charges	Loan amount above ₹10 lakhs: ₹6,000/- (Plus Taxes as applicable)
Repayment Mode I Account swap charges	₹500/- (Plus Taxes as applicable) per instance.
Charges for Amortisation Schedule/ Account Statement	Free once in a Financial Year. Thereafter, ₹500/- (plus taxes as applicable) per instance
Charges for Duplicate NOC / No Dues Certificate	₹500/- (Plus Taxes as applicable) per instance.
Charges for copy of Credit Bureau Report (to Customer who has availed Loan /Facility from us)	₹100/- (plus taxes as applicable) per instance for Individuals
	₹500/- (Plus taxes as applicable) per instance for non-individuals
Charges for Copy of any Document	₹500/- (Plus Taxes as applicable) per instance.
For priority sector loans up to ₹50,000, loan related charges (including guarantee fees of credit guarantee schemes) and ad hoc service charges/inspection charges are not applicable. In the case of eligible priority sector loans to SHGs/JLGs, this limit is applicable per member and not to the group as a whole.

Notes:

Competitive Interest rates
Stamp Duty on Loan Agreement / Overdraft Agreement, Guarantor Agreement, etc., varies from State/UT to State/UT. Stamping Charges, Notarisation Charges, Charge Creation on Collateral Security, etc., as per RBI/Statutory Notifications, as applicable.
Charges for other Services which is not specified above would be specified as applicable when the Customer applies for those Services and the same shall be payable by the Borrower. e.g. Revalidation of Sanction, Change in Collateral, Re-schedulement of Loan, Change in EMI Date, Solvency Certificate Issuance Charges, etc.,
Taxes / other statutory levies may be charged to the Borrower if applicable as per Government / RBI directives.
Any charges are applicable subject to regulatory/statutory feasibility. Any relaxations available to specific borrower categories / groups, if any, shall be applicable to such beneficiaries.
Bank reserves the right to modify any charges from time to time or to introduce any new charges, as it may deem appropriate and will publish them on the bank’s website (kotak.bank.in).
Note: BLIOD NUC charges will be Nil, as mentioned in the terms and conditions in the online journey.

How soon will my Business Loan get processed?

Once you submit all the required documentation to the Kotak Bank, your business loan will get sanctioned within 72 hours**

** Terms & Conditions apply. Credit at sole discretion of Kotak Mahindra Bank Ltd and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets.

How can I calculate your Business Loan EMIs?

To know how much EMI you would have to pay every month, try our easy-to-use business loan emi calculator. Simply enter the following details & Know your EMI:

Loan Amount
Desired Interest Rates (%)
Tenure in Years/Months

Who could be eligible for a Business Loan?

Are you thinking of availing a business loan anytime soon? Browse through our business loan eligibility criteria mentioned below, to make sure your business loan is approved at the very first go:

The applicant has to be in business for last 3 years with a minimum turnover of Rs.40 Lakhs
The business must have generated profit for a minimum of 1 year
The applicant should be a Sole Proprietor / Partnership firm / Private Ltd Co. / Trust / LLP involved in the business of Manufacturing, Trading or Services
The main applicant should be minimum of 25 years of age & should be no older than 65 years at the time of loan maturity.

Check out the criteria for business loans eligibility to know more.

What are the benefits of Kotak Business Loans?

Kotak Business Loans are available from Rs. 3 lakhs to Rs. 75 Lakhs. Minimal paperwork and speedy approvals are designed to speed up the entire process, which helps us making your banking experience fruitful.
To find out what more is in store for you, take a look at the details for business loan.