After disbursing more than Rs. 9,000 crore through a pilot phase, Kotak Mahindra Bank has expanded instant Working Capital Demand Loans for corporate customers, indicating that faster access to short‑term loans is beginning to influence how companies handle routine funding needs.

The facility allows eligible corporates to access working capital loans within seconds through a digital process, removing manual steps and banking cut‑off times that traditionally delayed access even when limits were already sanctioned.

“Customers are now accessing working capital when the requirement arises, rather than planning around banking timelines,” said Anu Aggarwal, President and Head of Corporate & Transaction Banking at Kotak Mahindra Bank. 

Working capital loans are among the most frequently used banking products by corporates, supporting everyday requirements such as inventory purchases, vendor payments and salary disbursements. Despite being pre‑approved, access has historically depended on fixed working hours and operational processing.

That pattern is now beginning to change. Kotak has enabled corporate customers to access working capital loans within seconds through its corporate digital platform, fyn (for your needs). Companies request loans by entering basic details such as the loan amount and tenure, after which pricing and checks are completed digitally and funds are credited almost immediately.

“We have reduced disbursement time from several hours to a few seconds,” Aggarwal said, adding that this allows companies to respond to operational needs as they arise rather than building buffers purely to manage delays.

According to the bank, early usage patterns suggest a behavioural shift. Companies are increasingly accessing working capital later in the day, without factoring in cut‑off times that earlier dictated when requests had to be placed.

“Earlier, customers had to submit requests before fixed hours. That constraint is no longer there for eligible customers,” Aggarwal said.

Kotak said adoption during the pilot phase has been strongest among SMEs and mid‑market companies, where even short delays in accessing working capital can disrupt operations. The bank is now extending the facility to larger corporates and conglomerates.

The emphasis on working capital reflects its scale in corporate banking. Bank estimates indicate that close to 70 percent of corporate loan journeys are linked to working capital, making it one of the most frequent interactions between corporates and lenders.

Aggarwal described instant working capital loans as a “game changer” for corporate banking, particularly in an environment marked by uneven demand cycles and delayed receivables. “Corporates increasingly expect banking processes to move at the pace of their business,” she said.

Industry observers note that while retail banking in India adopted instant payments and real‑time access several years ago, corporate loan processes evolved more slowly due to operational complexity. Recent adoption suggests that automation is now being applied to routine, high‑frequency corporate loan actions rather than only to front‑end services.

The instant loan capability forms part of Kotak’s broader digital push through the fyn platform, which integrates payments, collections, trade services and loans. The bank has also been digitising routine service requests such as account statements, tax certificates and reconciliations, and working on deeper integrations with corporate systems.

Whether instant working capital loans become standard practice across the sector will depend on how widely similar systems are adopted. For companies already using the facility, the impact is immediate. What began as a technology upgrade is now starting to change how corporates access short‑term loans and align funding availability more closely with business needs.