info@logintoloans.com +91 8885545255

Logintoloans Assistant

Enter Pincode

Personal Details

Key Features of Kotak Bank Business Loan with Overdraft (OD) Facility

  • Types of Overdraft Facilities:
    • Digital Overdraft (Digi OD): Unsecured facility for small businesses with limits up to ₹10 lakh, processed digitally through net banking.
    • Loan Against Property OD: Secured against residential, commercial, or industrial property with high limit up to ₹5 crore.
    • OD Against Credit Card Receivables: Based on POS machine transactions for businesses with consistent card payments.
    • OD Against Securities/Mutual Funds: Against pledged investments from approved list.
    • Agri-SME OD: Against warehouse receipts for agricultural commodity businesses.
    • Drop-Line Overdraft: Facility where limit reduces annually (e.g., 10% per year for 10-year loan).
Credit Card Promotion
  • Loan Amount: Digi OD: Up to ₹10 lakh; Loan Against Property OD: Up to ₹5 crore; OD Against Securities: Up to 80% of security value; Agri-SME OD: Based on warehouse receipt value.
  • Interest Rates: Competitive rates starting from 12.75% p.a. (business loan rates range from 16.00% to 19.99%). Interest is calculated only on the amount withdrawn, not the entire sanctioned limit.
  • Collateral and Security: Digi OD is collateral-free up to ₹10 lakh. Loan Against Property OD requires residential/commercial property as security. OD Against Securities requires pledging of approved investments.
  • Repayment Flexibility: No fixed EMIs - repay as per your cash flow. For Drop-Line OD, the limit reduces annually until the tenure ends. Interest payments are monthly on utilized amount.
  • Tenure: 1 year (renewable) for unsecured facilities like Digi OD. Secured facilities like Loan Against Property OD have flexible tenures up to 10 years with drop-line option.
  • Purpose: Funds can be used for working capital needs, managing cash flow gaps, inventory purchase, business expansion, or handling unexpected expenses. Suitable for businesses in various sectors.
  • Processing Fees and Charges: Processing fees up to 3% of loan amount for personal loan overdrafts. Renewal charges: 1% of renewal limit or ₹5,000, whichever is higher. Non-utilization charges: 0.5% of Average Operating Limit if utilization below 10%.
  • Eligibility: Business Type: Proprietors, partnerships, private limited companies. Business Vintage: Minimum 2 years of profitable operation. Age: Applicant must be 25-65 years at loan maturity. Credit Score: Preferably 700+ for unsecured facilities.
  • Documentation: Identity proof, address proof, business proof (GST registration, trade license), financial documents (ITR, balance sheets, bank statements). Property documents required for Loan Against Property OD.
  • Application Process: Digital application via Kotak Net Banking or Mobile Banking for Digi OD. Online via Kotak website or visit any Kotak Bank branch for other facilities. Eligibility can be checked online.
  • Additional Benefits: No stock statements required for Digi OD. Dedicated customer support. Online tools and NetBanking access for easy management. Doorstep services for document collection.
Who We Are

Benefits of Kotak Bank Business Loan Overdraft

  • Flexible Fund Access: Overdraft allows businesses to withdraw funds as needed up to the approved limit, even with zero balance. Pay interest only on the amount utilized, not the entire sanctioned limit, reducing borrowing costs.
  • Collateral-Free Options: Digi OD requires no collateral for limits up to ₹10 lakh, enabling small businesses without significant assets to secure funding quickly through digital process.
  • Quick and Digital Access: Fast approval and disbursal, with Digi OD limit set within 72 hours and funds available within 2 hours of activation. Minimal documentation for digital application.
  • No Fixed EMIs: Unlike term loans, OD facilities offer flexible repayment without mandatory equated monthly installments (EMIs), allowing businesses to repay based on cash flow availability.
  • Cost Efficiency: No commitment charges on the unused portion of the overdraft limit, ensuring businesses only pay for what they use. Competitive interest rates and daily interest calculation reduce overall borrowing costs.
  • High Loan Limits: Unsecured OD facilities offer up to ₹10 lakh (Digi OD), while secured options like Loan Against Property provide up to ₹5 crore, catering to diverse business scales.
  • Minimal Administrative Burden: No need for regular stock statements for Digi OD, reducing paperwork and compliance efforts. Digital process eliminates branch visits for application.
  • Business Growth Support: Funds can be used for expansion, inventory purchase, debt consolidation, or maintaining payment history, fostering long-term business growth. Helps businesses capitalize on market opportunities.
  • Tailored Solutions: Specific products for different needs - Digi OD for small businesses, Loan Against Property for established businesses, and Agri-SME OD for agricultural commodity businesses.
  • Seamless Management: Online tools and NetBanking access for easy management of OD facilities. Dedicated customer support for application, disbursal, and post-disbursal queries.
Check Best Gold Loan Offers

How to Apply for Kotak Bank Business Loan Overdraft

  • 1. Digital Overdraft (Digi OD) Application Process
    • Step 1: Log in to Kotak Net Banking or Mobile Banking
      • Access your Kotak current account through net banking or mobile app
      • Navigate to "Business Loan" or "Overdraft" section
    • Step 2: Select Digi OD Option
      • Choose "Digital Overdraft" from available products
      • Review eligibility criteria and features displayed
    • Step 3: Fill the Digital Application Form
      • Provide basic business details and desired overdraft limit
      • The system will auto-populate some details from your current account
    • Step 4: Upload Documents (if required)
      • Minimal documentation needed (basic KYC may already be available)
      • Optionally upload URC certificate or recent address proof if prompted
    • Step 5: Submit Application
      • Review and submit the digital application
      • You will receive an application reference number
    • Step 6: Limit Activation
      • OD limit set within 72 hours of application
      • Funds available within 2 hours of limit activation
  • 2. Branch Application Process for Other OD Facilities
    • Step 1: Visit a Kotak Bank Branch
      • Locate the nearest Kotak Bank branch using branch locator on website
    • Step 2: Consult a Relationship Manager
      • Discuss your business needs and suitable OD facility
      • The manager will guide on eligibility and documentation
    • Step 3: Complete the Application Form
      • Fill out the physical application form with business details
      • Provide information about financials and desired overdraft limit
    • Step 4: Submit Documents
      • Submit hard copies of required documents
      • For secured facilities, include asset documents (property papers, etc.)
    • Step 5: Verification
      • The bank will verify documents and may conduct inspections
      • For secured OD, property valuation will be arranged
    • Step 6: Approval and Disbursal
      • Upon approval, OD facility is activated in your current account
      • Processing time varies (3-7 working days typically)
  • 3. Applying Through Partners
    • Step 1: Visit Partner Website
      • Go to platforms like CreditMantri, Urban Money, or Paisabazaar
    • Step 2: Fill Online Form
      • Provide basic business and loan requirement details
    • Step 3: Representative Contact
      • A representative will guide you through the process
      • May arrange doorstep document collection

Eligibility Criteria for Kotak Bank Business Loan Overdraft

  • Business Type: Self-employed individuals, proprietors, partnership firms, private limited companies, or LLPs engaged in manufacturing, trading, services, or retail. Includes MSMEs, small businesses, and professionals.
  • Business Vintage: Minimum 2 years of profitable business operation for all OD facilities. Longer vintage (3-5 years) may qualify for higher limits.
  • Annual Turnover: Minimum turnover of ₹40 lakh per annum for Digi OD. Higher turnover (₹1 crore+) required for secured facilities like Loan Against Property OD.
  • Age of Applicant: Applicant must be between 25 and 65 years of age at the time of loan maturity.
  • Credit Score: A credit score of 700 or above is preferred for unsecured OD facilities (Digi OD). For secured facilities, a slightly lower score may be considered with strong collateral.
  • Banking Relationship: Must have an active Kotak Mahindra Bank current account with regular transactions. Non-customers need to open a current account.
  • GST Compliance: Businesses must be GST-registered and compliant with regular GST return filings, especially for GST-based loan products.
  • Business Location Type: Preference for businesses operating from a commercial location or owned property rather than residential addresses.
  • Digital Profile: Applicants with a digital footprint, such as active online banking usage or digital payments, may benefit in processing speed and approval.
  • Nature of Industry: Businesses in high-risk industries (e.g., speculative trading, banned items) may be ineligible. Preference is given to stable, low-risk sectors.
  • Scheme-Specific Eligibility Criteria
    • Digi OD: Active Kotak current account with regular transactions. Minimum 2 years in business. No collateral required for limits up to ₹10 lakh.
    • Loan Against Property OD: Ownership of residential/commercial property free of legal disputes. Stable business track record preferred.
    • OD Against Credit Card Receivables: Consistent credit card transactions via Kotak POS machines (typically ₹12 lakh+ annual receivables).
    • OD Against Securities/Mutual Funds: Ownership of approved securities or mutual funds that can be pledged.
    • Agri-SME OD: Warehouse receipts from approved warehouses for agricultural commodities.
    • Repayment Capacity: The bank evaluates the business's ability to pay interest on the utilized OD amount. Stable cash flow and profitability are key.
    • Location: Business must be located in a serviceable area where Kotak operates. For secured OD, the collateral must be in an approved location.
    • Documentation Readiness: Applicants must have up-to-date financial statements, KYC documents, and business registration proof.
    • No Major Defaults: Businesses should not have any recent loan defaults or write-offs reported in CIBIL or other credit bureaus.
    • Income Tax Returns (ITRs): The business must have filed ITRs for at least the last two financial years to demonstrate financial stability.
    • Existing Loan Obligations: The total existing EMIs or OD utilization should not exceed a manageable percentage of the business’s income or turnover.
Check Best Gold Loan Offers

Documents Required for Kotak Bank Business Loan Overdraft

  • For All Applications
    • Identity Proof (for applicant and co-applicant, if any): PAN card (mandatory), Aadhaar card, Voter ID, Passport, Driving license
    • Address Proof (for applicant and business): Aadhaar card, Voter ID, Passport, Utility bill (electricity, water, or gas bill, not older than 3 months), Rental agreement or property tax receipt
    • Business Proof: GST registration certificate, Trade license, Shop and Establishment Act certificate, Partnership deed (for partnership firms), Certificate of incorporation and Memorandum of Association (for private limited companies), Proof of business continuity
  • Financial Documents
    • Income Tax Returns (ITR): ITR with computation of income for the last 2 years (3 years for Loan Against Property OD)
    • Balance Sheet and Profit & Loss: Certified by a Chartered Accountant for the last 2-3 years
    • Bank Statements: 12 months' statements (personal and business accounts, preferably from a current account)
    • GST Returns: For last 12 months (if applicable)
  • Product-Specific Documents
    • For Loan Against Property OD: Title deed, Approved plan, Property tax receipts, Encumbrance certificate, NOC from society (if applicable)
    • For OD Against Securities/Mutual Funds: Demat account statement, Mutual fund statements or bond certificates
    • For Digi OD: Minimal documentation; optionally URC certificate or recent address proof
    • For Agri-SME OD: Warehouse receipts for agricultural commodities from approved warehouses
  • Application Form
    • Duly filled and signed loan application form (available online or at Kotak branches)
    • Passport-size photographs of the applicant

Factors for Kotak Bank Business Loan Overdraft (OD)

  • Creditworthiness of the Applicant: A CIBIL score of 700 or above is preferred for unsecured OD facilities. No defaults or late payments on existing loans or credit cards. The bank assesses the applicant's ability to manage additional debt.
  • Business Profile and Stability: Minimum of 2 years of continuous profitable operation. The nature of the business determines product suitability. Stable and consistent cash flow supports repayment capacity.
  • Financial Documentation: ITR for last 2-3 years shows financial health. 12 months' bank statements reflect transaction volume and cash flow. GST returns validate business activity and turnover.
  • Collateral (for Secured OD): For Loan Against Property OD, ownership of property free of legal disputes is key. For OD Against Securities, approved investments must be pledged.
  • Kotak Current Account Activity: Regular transactions in Kotak current account are mandatory. Healthy account activity improves approval chances and limit determination.
  • Loan Amount and Purpose: The requested OD limit must align with business turnover and repayment capacity. Clear articulation of purpose (working capital, expansion etc.) strengthens application.
  • Banking Relationship: Existing Kotak customers may receive faster processing or better terms. Long-term relationship with regular transactions improves approval chances.
  • Interest Rates and Fees: Rates start from 12.75% p.a. (business loan rates 16.00% to 19.99%). Processing fees up to 3% for personal loan overdrafts. Renewal charges: 1% of renewal limit or ₹5,000, whichever is higher.
  • Repayment Capacity: The bank evaluates ability to pay interest on utilized amount. For Drop-Line OD, the reducing limit structure requires disciplined financial management.
  • Applicant's Profile: Age must be 25-65 years at loan maturity. Should be business owner/partner/director with authority to apply. Professional qualifications may be required for certain facilities.

Frequently Asked Questions (FAQs)

What is a Business Loan Overdraft (OD)?
A Business Loan OD is a flexible credit facility allowing businesses to withdraw funds up to a sanctioned limit from their Kotak current account, even with a zero balance. Interest is charged only on the utilized amount, making it ideal for short-term working capital needs.
What types of overdraft facilities does Kotak offer?
Kotak provides:
  • Digital Overdraft (Digi OD): Unsecured, up to ₹10 Lakhs, with a digital application.
  • Loan Against Property OD: Secured, up to ₹5 Crores, against property.
  • OD Against Credit Card Receivables: Based on POS transactions.
  • OD Against Securities/Mutual Funds: Against pledged investments.
  • Agri-SME OD: Against warehouse receipts for agricultural commodities.
Who is eligible for a Kotak Business Loan OD?
Self-employed individuals, proprietorships, partnerships, or companies with:
  • An active Kotak current account.
  • Minimum 2 years of profitable business operations.
  • Age: 25 to 65 years at loan maturity.
  • Business turnover as per OD type (e.g., ₹40 Lakhs for Digi OD, ₹1 Crore+ for secured OD).
  • Residence and office in a serviceable location.
  • Good credit score (typically 700+ for unsecured OD).
What is the loan amount for a Business Loan OD?
Ranges from ₹50,000 to ₹40 Lakhs for unsecured OD (Digi OD). Up to ₹5 Crores for secured OD (e.g., against property). Exact limit depends on eligibility, turnover, and collateral value (if applicable).
What is the interest rate for Kotak Business Loan OD?
Interest rates typically start at 12.75% p.a. for OD facilities but can range from 16.00% to 19.99% p.a., depending on credit profile, OD type, and collateral. Interest is charged only on the utilized amount, not the entire limit.
Is collateral required for a Business Loan OD?
Unsecured OD (Digi OD): No collateral required for limits up to ₹10 Lakhs.
Secured OD: Collateral like property, securities, or warehouse receipts is mandatory for higher limits.
What documents are required to apply?
Common documents:
  • Photo ID (Aadhaar, Passport, Voter ID, or Driving License).
  • Address proof (utility bill, rental agreement).
  • Business proof (GST registration, URC certificate).
  • Financials (ITR for 2 years, bank statements for 6–12 months).
Digi OD: Minimal documentation (optional URC or address proof).
Secured OD: Additional asset documents (e.g., property papers, mutual fund statements).
How can I apply for a Kotak Business Loan OD?
Digi OD: Apply online via Kotak Net Banking or Mobile Banking app (paperless process).
Other OD:
  • Online: Through www.kotak.com.
  • In-person: Visit a Kotak branch.
  • Partners: Via platforms like CreditMantri or Urban Money.
Contact customer care (1800-266-6666 or +91-22-62042001) for assistance.
How long does it take to get the OD approved?
Digi OD: Limit set within 72 hours; funds available within 2 hours of activation.
Other OD: Approval typically takes 3–7 working days, depending on document verification and asset valuation (for secured OD).
What is the repayment process for a Business Loan OD?
No fixed EMIs; repay at your convenience within the sanctioned tenure (usually 1 year, renewable). Interest is charged monthly on the utilized amount.
Drop-line OD (e.g., against property): Reduces the limit annually (e.g., 10% per year for a 10-year loan).

List of Kotak Bank Business Loan Facilities

  • Kotak Bank Term Loans
  • Kotak Bank Overdraft
  • Kotak Bank Working Capital Finance
  • Kotak Bank Loan Against Property
  • Kotak Bank Construction Equipment Loan
  • Kotak Bank Commercial Vehicle Loan
  • Kotak Bank Healthcare Finance Solutions
  • Kotak Bank Farm Equipment Loan
  • Kotak Bank Agri Project and Crop Loans
  • Kotak Bank Channel Finance
  • Kotak Bank Dealer Finance
  • Kotak Bank Agri SME Business Loans
  • Kotak Bank Infrastructure Finance
  • Kotak Bank Loans for Transportation, Logistics, Warehouse
  • Kotak Bank Loan Against Credit Card Receivables