Loans
Overdraft Facility

Overdraft Facility

Explore limitless business possibilities with the Overdraft Services

In today's competitive business world, you need to grab opportunities which knock on your door without being constrained by lack of access to funds or having to take the capital from your investments.

At Kotak Mahindra Bank, we understand your business needs and are pleased to bring you our special Overdraft Services - designed to give you hassle-free ready liquidity to meet all your business demands and emergencies smoothly and effectively. You can choose from the following two options:

K-Value

With this facility, you can avail of a completely unsecured overdraft of up to 50 Lakhs! Based on the analysis of your full financials, K-Value is one of the biggest unsecured overdrafts in the market.

Credit Access

This facility allows you to avail an unsecured overdraft upto 10 Lakhs based on the minimum average quarterly balance (AQB) maintained in your current account with us or any other bank. The minimum AQB required to be eligible for Credit Access is Rs.25,000/-

Key Features

  • Convenience
  • Hassle-free Documentation
  • Control On Interest
  • Easily Available Funds
  • Exclusivity

Features & Benefits

  • Convenience

    • Operate from one primary account - No need to open a separate account.

  • Hassle-free Documentation

    • No periodic submission of stock statement or FDR required.

  • Control On Interest

    • Pay interest only on the amount that you use.

  • Easily Available Funds

    • In case of an unforeseen business expenditure, you can keep your investments and FDs untouched, thanks to the easy fund access.

  • Exclusivity

    • It offers you competitive features and benefits in the current market scenario.

Who Can Apply

  • A Current Account with KMBL or with any other bank which is atleast 6 months old, and is the main operative account.
  • Your business must be running for at least the last 3 years.
  • Customers having a KMBL - PL are not eligible.
  • Minimum required AQB is Rs. 25,000 for Credit Access.

Documentation

  • KYC documents to establish identity, DOB and address.
  • Last 6 months' current account statement.
  • Avail the Kotak Mahindra Bank Overdraft Services and explore limitless business possibilities today!

Tips to optimize Overdraft (OD) funds utilization to your advantage

  1. Keep your OD interest due under control. Use your OD for short term requirements and replenish the account as soon as you can.
  2. Repay every month within the limit period to avoid penalties.
  3. Use it only for short term capital or working capital requirements or a scenario where you expect rotation of funds to happen. Since an OD can inflate your interest burden, it is essential to avoid investing your OD account funds in the market and even in long gestation projects. This is both financially prudent and meets regulatory requirements.
  4. Maintain a primary OD account. This is more efficient and reduces interest burden.
  5. Choose your primary account with care. It should be a balance between convenience, economical interest rate and benefits. For example, an unsecured OD account saves you the hassle of submitting stock statements regularly or collateralizing your FD, and thus having a lien marked on it. A secured OD on the other hand, will reduce your interest burden, if it is an OD against property.

 

For loans: *Conditions apply: Credit at the sole discretion of the Bank 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.