Kotak Mahindra Bank Business Loans in 2026: Products, Rates, Fees and Eligibility

Kotak Mahindra Bank lends to small businesses through several doors, and searches for a "Kotak Mahindra Bank loan for business" usually land only on the first: an unsecured, fixed-rate Business Loan. Behind it sit a GST-based MSME loan backed by a government guarantee, a digital overdraft on your current account, a loan against card receivables, loans against property and the bank's working-capital desk. This guide maps them using only what Kotak publishes on kotak.bank.in, read on 9 October 2026 — rate card, the rates it disclosed for the June quarter, fees, eligibility and documents — and sets the main terms against HDFC Bank and Axis Bank. It's a neutral explainer, not a recommendation.

Quick answer

Kotak's Business Loan is unsecured and fixed-rate: ₹3 lakh–₹1 crore, with a rate card of 9.50%–30.50% (fixed) and a processing fee of up to 2% of the loan + GST. For GST-registered MSMEs, the GST Power Loan lends ₹20 lakh–₹2 crore without collateral under CGTMSE, and Digi OD gives up to ₹15 lakh on an existing current account.

• Loans contracted in the June 2026 quarter carried 9.97%–20.97%, per Kotak's own disclosure

• Business Loan eligibility: 3 years in business, turnover ≥ ₹40 lakh, 1 year of profit, age 25 to 65 at maturity

• Micro and small enterprises pay no foreclosure on fixed-rate loans up to ₹50 lakh; others pay 4%

• Part payment isn't allowed on the Business Loan, so choose the amount and tenure carefully

Kotak's loans for business at a glance

Kotak's business-lending products split into three groups. The retail-style unsecured loans — the Business Loan and the facility against credit-card receivables — are decided largely on your credit report, bank statements and ITRs, priced at a fixed rate, and paid out as a lump sum. The MSME and working-capital products — the GST Power Loan, Digi OD, cash credit, overdrafts, demand loans and trade finance — are relationship lending run through the business banking desk. And the secured loans — loan against property and the Strategic Business Loan — lend against assets you already own.

Kotak also finances commercial vehicles, construction equipment and farm equipment, and has a healthcare-finance programme for doctors and hospitals. Those are asset loans with their own terms and are not covered in detail here.

The Kotak Business Loan: amount, eligibility and tenure

Kotak's main Business Loan page offers ₹3 lakh–₹1 crore without collateral for small, medium and large businesses. One inconsistency is worth knowing: the bank's required-documents page says ₹3 lakh to ₹75 lakh, while the product, eligibility and FAQ pages say ₹1 crore. Treat ₹1 crore as the ceiling but expect larger amounts to need a strong profile, and confirm with the bank. The page says tenures of up to 60 months are available for doctors and chartered accountants; it doesn't state a general maximum for other borrowers, so ask.

Eligibility. Kotak publishes four conditions. The business must have been running for three years with turnover of at least ₹40 lakh. It must have made a profit for at least one year. The applicant must be a sole proprietor, partnership firm, private limited company, trust or LLP in manufacturing, trading or services. And the main applicant must be at least 25 and no older than 65 when the loan matures — so a 60-year-old proprietor is effectively limited to a five-year loan.

Kotak's FAQ says the loan is meant for manufacturers, traders, self-employed professionals, restaurants and hospitals, and that existing current- or savings-account customers get a preferential rate, faster processing and doorstep service. In practice that means your conduct on a Kotak account is part of the assessment, and a business that already banks with Kotak is likely to be offered a better rate than a new customer.

Kotak Business Loan — published terms (read 9 October 2026)

₹3 lakh–₹1 crore

Loan amount, unsecured

9.50%–30.50% (fixed)

Rate card for individuals

9.97%–20.97%

Rates actually contracted

quarter ended 30 June

₹40 lakh

Minimum turnover

3 years in business

Interest rate, fees and charges

Rate. Kotak's interest-rate page lists the Business Loan for individuals at 9.50%–30.50% (fixed), a fixed rate, with a processing fee of up to 2% plus GST. Because the rate is fixed, the repo rate increase to 5.50% on 7 October 2026 doesn't change an existing loan's EMI — but it can affect the rate you're offered on a new one.

The same page discloses the range of rates on Business Loans contracted in the quarter ended 30 June 2026: a minimum of 9.97% and a maximum of 20.97%. The "mean" printed beside them is 30.95%, which can't be right — an average can't exceed the maximum. Until Kotak corrects it, use the range as a guide to where offers fall and judge your own offer on the APR in its Key Facts Statement. By comparison, HDFC Bank's disclosed average for the same quarter on its unsecured Business Loan was 16.73%.

Fees. Kotak's fee schedule for the Business Loan lists these charges, plus GST:

• Processing fee: up to 2% of the loan + GST, non-refundable — nil for total facilities up to ₹5 lakh taken by micro and small enterprises that submit their Udyam Registration Certificate before disbursal.
• Documentation charges: ₹3,500 up to ₹10 lakh; ₹6,000 above ₹10 lakh (+ GST).
• Annual review or renewal (for limits): up to 2% of the renewal limit.
• Cheque or mandate bounce: ₹750 per instance.
• Repayment mode or account swap: ₹500.
• Amortisation schedule or statement: free once a year, then ₹500.
• Priority-sector loans up to ₹50,000: no loan-related or ad hoc service charges.

Late payment and penalties. Overdue amounts attract a penal charge of 8% a year on the overdue amount for the actual number of days, plus taxes. Under RBI's penal-charges rules this is a separate charge, not added interest, and it must appear in your KFS. The schedule also lists charges for breaching other loan conditions (₹5.50 per day per lakh of exposure), for late stock statements or stock audits where they apply (₹5,000 a month), and a commitment charge if average use of an overdraft limit falls below 60% in a quarter.

Foreclosure and part payment. For businesses that are not micro or small enterprises, foreclosure costs 4% of the outstanding plus taxes. Micro and small enterprises pay nothing on fixed-rate loans up to ₹50 lakh of original sanctioned limit and nothing on floating-rate loans — in line with RBI's pre-payment directions for loans sanctioned from 1 January 2026. Kotak's FAQ adds that part payment is not allowed on the Business Loan, so you can close it early but not reduce it in stages. Register on Udyam and hand in the certificate before disbursal: it decides both the processing-fee and the foreclosure waivers.

EMI on ₹25 lakh at the top of Kotak's June-quarter range (20.97%, 3 years)

Loan AmountInterest Rate (p.a.)Tenure

Loan Amount₹25,00,000.00

Total Interest₹8,89,369.94

Total Payable₹33,89,369.94

Number of EMIs36

Monthly EMI₹94,149.16

Open the full EMI Calculator (PDF, save, compare)

What a ₹25 lakh Business Loan costs

Take a Ludhiana hosiery trader, a proprietorship with five years' vintage and ₹1.2 crore turnover, borrowing ₹25 lakh over 36 months. The fees are the same whatever the rate: 2% processing (₹50,000) plus ₹6,000 documentation, plus 18% GST — about ₹66,080 in all, since the MSE fee waiver stops at ₹5 lakh.

The spread between the best and worst rates is nearly ₹4.9 lakh of interest on the same loan. Your credit score, the business's banking with Kotak and the stability of your turnover decide where you land, which is why it pays to get a KFS from more than one bank. Our EMI guide shows how to check the APR yourself.

GST Power Loan, Digi OD and working capital

For businesses that need working capital rather than a lump sum, Kotak's MSME products are often cheaper and more flexible than the unsecured loan, and they don't rely on audited accounts.

Kotak GST Power Loan. A collateral-free loan for GST-registered MSMEs of ₹20 lakh–₹2 crore, sized from your GST turnover and bank statements rather than detailed financial statements. Kotak says eligible loans are covered by CGTMSE, the government trust that guarantees loans to micro and small enterprises; the bank applies for the cover on your behalf. You can take it as a cash credit overdraft or a working capital demand loan for up to 12 months, or a dropline overdraft or term loan for 12 to 60 months. Kotak's conditions: applicants aged 25 to 70, at least three years of operations, active GST registration and GST turnover of at least ₹1 crore in the last 12 months. Proprietorships, partnerships, LLPs, private limited companies, HUFs, trusts and one-person companies can apply. Kotak advertises approval within 48 hours once the documents are complete.

Budget for the CGTMSE guarantee fee: the trust charges an annual fee of 0.37% a year to 1.20% a year of the amount guaranteed, depending on the loan size, and banks usually pass it on. Remember too that RBI tells banks not to take collateral on loans to micro and small enterprises up to ₹20 lakh, guarantee or no guarantee.

Digi OD. If you already have a Kotak current account, Digi OD converts it into an unsecured overdraft of up to ₹15 lakh through net banking or the mobile app, with the limit set within 72 hours of applying and no collateral. Interest is charged only on what you draw. Kotak doesn't publish the Digi OD rate on the product page; it appears in your sanction terms.

Card receivables (FCCR). Shops, restaurants and clinics that take a lot of card payments can borrow against those settlements, as a loan or overdraft of up to ₹3 crore.

Working Capital Finance. For larger or more complex needs, Kotak's business banking desk offers cash credit and overdraft limits, working capital demand loans, term loans, export and import credit, letters of credit, bank guarantees and capex LCs, with programmes assessed on GST data, bank statements, turnover, ITRs or full financials. These are priced individually; ask your relationship manager for the benchmark and spread, and see our guide to working capital for how limits are sized.

Secured loans: loan against property and the Strategic Business Loan

When you need more than the unsecured limits or a longer repayment, Kotak lends against property. Its Loan Against Property ranges from ₹10 lakh–₹5 crore against residential, commercial, industrial or specialised property, as a term loan or overdraft, for business or personal use. The rate card shows 9.15%–16% (repo + 2.9 to 8.75 points), and Kotak disclosed contracted rates of 7.55%–13.15% (mean 8.82%) for the June quarter — far below the unsecured loan. A hybrid option fixes the rate for the first 39, 52 or 65 months before it switches to the repo rate plus a spread. Kotak says it disburses within 25 working days of receiving documents.

The Strategic Business Loan is the bank's broader label for customised loans against property or other assets, with tenures of three years or more, balance transfer of costlier debt from other lenders and, for exporters, foreign-currency term loans. Our guide to loans against property covers loan-to-value, stamp duty and foreclosure in detail.

Kotak vs HDFC vs Axis: unsecured business loans compared

The three private banks sell similar unsecured loans, but the published terms differ. HDFC and Axis figures come from our HDFC Bank and Axis Bank guides, checked the same day.

Unsecured business loans — published terms, October 2026

	Kotak Mahindra Bank	HDFC Bank	Axis Bank
Amount	₹3 lakh–₹1 crore	Up to ₹75 lakh (₹1 crore select locations)	Up to ₹2 crore
Minimum turnover	₹40 lakh	₹40 lakh	₹30 lakh
Published rate	9.50%–30.50% (fixed)	Rack 10.75%–22.50%	15%–25% for self-employed non-professionals
Rates actually charged, Apr–Jun	9.97%–20.97%	9.50%–21.03% (average 16.73%)	9.5%–25.25% (mean 18.93%)
Processing fee	up to 2% of the loan + GST; nil up to ₹5 lakh for MSEs	up to 2% of the loan; nil up to ₹5 lakh for MSEs	See Axis schedule
Vintage and profit	3 years; 1 year profit	3 years; 2 years' profits	See Axis eligibility
Foreclosure	4% non-MSE; nil for MSE fixed-rate up to ₹50 lakh	4%/3%/2% by age; nil for MSE fixed-rate up to ₹50 lakh	See Axis schedule

Amount

Kotak Mahindra Bank

₹3 lakh–₹1 crore

HDFC Bank

Up to ₹75 lakh (₹1 crore select locations)

Axis Bank

Up to ₹2 crore

Minimum turnover

Kotak Mahindra Bank

₹40 lakh

HDFC Bank

₹40 lakh

Axis Bank

₹30 lakh

Published rate

Kotak Mahindra Bank

9.50%–30.50% (fixed)

HDFC Bank

Rack 10.75%–22.50%

Axis Bank

15%–25% for self-employed non-professionals

Rates actually charged, Apr–Jun

Kotak Mahindra Bank

9.97%–20.97%

HDFC Bank

9.50%–21.03% (average 16.73%)

Axis Bank

9.5%–25.25% (mean 18.93%)

Processing fee

Kotak Mahindra Bank

up to 2% of the loan + GST; nil up to ₹5 lakh for MSEs

HDFC Bank

up to 2% of the loan; nil up to ₹5 lakh for MSEs

Axis Bank

See Axis schedule

Vintage and profit

Kotak Mahindra Bank

3 years; 1 year profit

HDFC Bank

3 years; 2 years' profits

Axis Bank

See Axis eligibility

Foreclosure

Kotak Mahindra Bank

4% non-MSE; nil for MSE fixed-rate up to ₹50 lakh

HDFC Bank

4%/3%/2% by age; nil for MSE fixed-rate up to ₹50 lakh

Axis Bank

See Axis schedule

What the table suggests: if your turnover is between ₹30 and ₹40 lakh, only Axis's floor fits. If you need ₹1–2 crore unsecured, Axis has the highest ceiling, though Kotak's GST Power Loan reaches ₹2 crore with a CGTMSE guarantee if you are a GST-registered MSE with ₹1 crore turnover. Kotak asks for only one year of profit against HDFC's two, which helps a business that had a weak year. On price, all three disclosed wide ranges; the deciding number is the APR on your own offer.

Documents and how to apply

Kotak's document list for the Business Loan asks for originals for verification and self-attested copies of: identity and address proof (e-KYC-authenticated Aadhaar, voter ID, driving licence or passport); proof of at least three years' business continuity (Udyam, GST registration, incorporation certificate or shop licence); ownership proof of your home or office (registered agreement, electricity bill, maintenance bill with share certificate or municipal tax bill); constitution documents (partnership deed, MoA and AoA, or GST certificate for a proprietor); and anything else your programme needs. For the GST Power Loan, Kotak lists KYC, the application form, 12 months' bank statements, 24 months' GST returns, the latest ITR, the Udyam certificate and ownership proof. Several Kotak products let you submit three years' financial statements through its partner website Finfort, which pulls reports from the income-tax, TRACES and MCA portals with your consent. Our business loan documents checklist covers the full list by business type.

Applying for a Kotak business loan

1. 1

   Pick the product

   Business Loan for an unsecured lump sum; GST Power Loan or Digi OD for working capital; FCCR if you take card payments; LAP for larger or longer loans.

2. 2

   Check the thresholds

   Business Loan: 3 years, turnover ≥ ₹40 lakh, 1 year profit, age 25 to 65 at maturity. GST Power Loan: 3 years, GST turnover ≥ ₹1 crore, age 25 to 70.

3. 3

   Apply online, through net banking or at a branch

   Use the Apply Now form on the product page, request Digi OD in net banking if you hold a Kotak current account, or go through your relationship manager.

   Kotak — Business Loan
4. 4

   Submit Udyam before disbursal

   It unlocks the nil processing fee up to ₹5 lakh and the MSE foreclosure waiver.

   Udyam registration guide
5. 5

   Read the KFS and sanction letter

   Check the APR, fixed or floating rate, fees, insurance, foreclosure terms, the no-part-payment rule and penal charges before you sign.

After disbursal, download statements and the repayment schedule through net banking — they're free once a year and cost ₹500 a copy after that. Keep EMIs on time: a bounce costs ₹750 plus the penal charge on the overdue amount, and both appear on your credit report. If something goes wrong, use Kotak's grievance channels first; if the complaint isn't resolved within 30 days or you're unhappy with the reply, take it to the RBI Ombudsman at cms.rbi.org.in.

Official links

• Kotak — Business LoanAmount, features, FAQ
• Kotak — Business Loan fees and chargesProcessing, foreclosure, penal charges
• Kotak — Interest ratesRate card and contracted-rate disclosure
• Kotak — GST Power LoanCGTMSE-backed MSME loan
• CGTMSE — Guarantee fee structureCurrent guarantee fees
• RBI — Lending to MSME SectorCollateral-free limit, decision timelines
• RBI Complaint Management SystemOmbudsman complaints

What to do next

Decide whether you need a lump sum or a revolving limit, check which Kotak product your vintage and turnover qualify for, and ask Kotak and at least one other lender — HDFC Bank or Axis Bank — for a Key Facts Statement on the same amount. Compare the APR, foreclosure terms and whether part payment is allowed, run the numbers in our EMI calculator, and register on Udyam before disbursal if you're a micro or small enterprise.

This is general information, not financial or legal advice — confirm the terms on the official source or with your bank.

Frequently asked questions

What is the interest rate on a Kotak Mahindra Bank business loan?

Kotak's interest-rate page lists its Business Loan for individuals at 9.50% to 30.50%, fixed, with a processing fee of up to 2% plus GST. It also discloses that loans contracted in the quarter ended 30 June 2026 carried rates from 9.97% to 20.97%. The mean shown beside them, 30.95%, is higher than the maximum and looks like a typo, so ask for your own APR in the Key Facts Statement.

How much business loan can I get from Kotak without collateral?

Kotak's unsecured Business Loan runs from ₹3 lakh to ₹1 crore. Its GST Power Loan offers ₹20 lakh to ₹2 crore without collateral for GST-registered MSMEs, backed by a CGTMSE guarantee, and Digi OD converts an existing Kotak current account into an unsecured overdraft of up to ₹15 lakh. Loans against card receivables go up to ₹3 crore.

What is the eligibility for a Kotak business loan?

For the unsecured Business Loan, Kotak asks for three years in business, turnover of at least ₹40 lakh and at least one year of profit. The main applicant must be at least 25 and no older than 65 when the loan ends. Proprietorships, partnerships, private limited companies, trusts and LLPs in manufacturing, trading or services can apply.

Does Kotak charge foreclosure on business loans?

Kotak's fee schedule charges 4% of the outstanding plus taxes on foreclosure for businesses that are not micro or small enterprises. Micro and small enterprises pay nothing on fixed-rate loans up to ₹50 lakh of original sanctioned limit and nothing on floating-rate loans. Its FAQ also says part payment is not allowed on the Business Loan.

What is the Kotak GST Power Loan?

It is a collateral-free MSME loan of ₹20 lakh to ₹2 crore assessed from GST returns and bank statements instead of audited financials, and covered by CGTMSE. You need three years in business, active GST registration, at least ₹1 crore of GST turnover in the last 12 months, and age 25 to 70. It can be a cash credit, demand loan, dropline overdraft or term loan.

Is Kotak better than HDFC or Axis for a business loan?

On published terms, Kotak's unsecured loan tops out at ₹1 crore against HDFC's ₹75 lakh (₹1 crore in select locations) and Axis's ₹2 crore, and Kotak's ₹40 lakh turnover floor matches HDFC's while Axis asks for ₹30 lakh. Kotak's disclosed rates for April–June 2026 ran 9.97% to 20.97%. Compare the APR in each bank's Key Facts Statement before choosing.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Kotak Mahindra Bank — Business Loan — Kotak Mahindra Bank · accessed 9 October 2026
2. 2.Kotak Mahindra Bank — Business Loan eligibility — Kotak Mahindra Bank · accessed 9 October 2026
3. 3.Kotak Mahindra Bank — Business Loan fees and charges — Kotak Mahindra Bank · accessed 9 October 2026
4. 4.Kotak Mahindra Bank — Documents required for Business Loan — Kotak Mahindra Bank · accessed 9 October 2026
5. 5.Kotak Mahindra Bank — Interest rates — Kotak Mahindra Bank · accessed 9 October 2026
6. 6.Kotak Mahindra Bank — Kotak GST Power Loan — Kotak Mahindra Bank · accessed 9 October 2026
7. 7.Kotak Mahindra Bank — Digi OD — Kotak Mahindra Bank · accessed 9 October 2026
8. 8.Kotak Mahindra Bank — Loan Against Property — Kotak Mahindra Bank · accessed 9 October 2026
9. 9.Kotak Mahindra Bank — Working Capital Finance — Kotak Mahindra Bank · accessed 9 October 2026
10. 10.CGTMSE — Guarantee fee structure — CGTMSE · accessed 9 October 2026
11. 11.RBI (Pre-payment Charges on Loans) Directions, 2025 — Reserve Bank of India · accessed 9 October 2026
12. 12.Master Direction – Lending to MSME Sector — Reserve Bank of India · accessed 9 October 2026