Yes Bank Loan Against Property

The Yes Bank is one of the predominant private sector banks in India and has marked its presence throughout the country. Yes Bank has introduced a loan against property to help its customers fulfil their dreams.

Yes Bank Loan Against Property Interest Rates and Processing Fees

Loan Amount	Interest Rate
Upto 30 Lakh	10.50%
=30 Lakh < 75,00,000	10.50%
= 75 Lakh < 2,00,00,000	10.50%
Above 2 Cr	10.50%
Processing Fee	Up to 1%

Features

• Loan amounts of up to 5 crores

• Flexible repayment options

• Attractive interest rates

• Quick processing

• Minimal documentation

Yes Bank Loan Against Property Schemes

The bank offers various loan against property schemes:

• Loan against residential property (term loan)

• Dropline Overdraft (DOD) facility: A unique overdraft facility financed against collateral, which gives the leverage of repaying the particular amount that the customer uses.

• Loan against property for the purchase of commercial property.

• Loan against rent receivables: The loan is borrowed against monthly rentals received by a customer from leased-out properties.

(Also Read : YES Bank Personal Loans)

Eligibility Criteria

Eligibility for the loan depends on various factors:

• Age: The minimum permissible age for salaried and self-employed applicants is 21 years to apply for a loan against property. Any person availing a loan at the age of 25, can get it for a tenure of 15 years or more, thus reducing the servicing burden on his/her existing income.

• Income: Property loan is predominantly borrowed by self-employed individuals to meet their business requirements. However, to increase the loan amount, one can also club the income of family members such as spouse, parents, children, and siblings by registering them as co-applicants.

• Business Stability: The self-employed applicant should have been in business for a minimum of 3 years, and the company should have made profits during that period. The bank will also require ITR of 2 years to consider you eligible for the loan.

• Credit Score: A feeble credit history and poor repayment record of existing loans and credit cards may hurt your loan eligibility. The bank grants loans to borrowers with a credit score of 700 and above.

• Loan Amount: Yes Bank sanctions an amount ranging from ? 10 Lakh to ? 5 Cr, based on the property’s value. It is advisable to apply for a loan amount that you can comfortably repay.

• Property Value: The value of the collateral property is used to calculate the permissible LTV (Loan to Value) ratio, which can range up to 70%, depending on the type of property. The bank employs a detailed property assessment process to verify that it adheres to legal regulations, also assessing its market value and saleability.

• Fixed Obligations to Income Ratio (FOIR): Yes Bank also calculates the proportion of fixed obligations to your income. Fixed obligations include average monthly expenses and EMIs that you are paying on other existing loans. Minimum FOIR to be eligible for a Yes Bank Loan Against Property is 0.45.

Criteria for Salaried Employees

• Minimum income of the applicant should at least be 3 Lakhs per annum

• Minimum age -

  • 23 years, if the income of the co-applicant is considered

  • 21years, if the income of the co-applicant isn't considered

• Maximum age -

  • 60 years, if the income of the co-applicant is included

  • 70 years, if the income of the co-applicant isn't included

• At least six months of experience with the current employer

• At least three years of experience as a salaried employee

Criteria for Self-Employed Individuals

• Minimum profit should be of 4 lakhs/annum

• Minimum turnover should be 15 lakhs/annum for service providers, 10 lakhs/annum for doctors, 60 lakhs for non-service providers

• Minimum age -

  • 23 years, if the income of the co-applicant is considered

  • 21years, if the income of the co-applicant isn't considered

• Maximum age -

  • 60 years, if the income of the co-applicant is included

  • 70 years, if the income of the co-applicant isn't included

• At least six months of experience in the current business

• At least three years of experience in business

Documents Required for Yes Bank Loan Against Property

The following documents are crucial while applying for a Yes Bank Loan Against Property:

• Identity proof: PAN, passport, or aadhaar card.

• Address proof: Passport, latest utility bills, ration card, and bank account statements.

• Income documents: The documentation differs for salaried individuals and self-employed professionals/businesspeople/retail SME enterprises. The following are the required documents:

  • Salaried Individuals - Salary slips for the last three months; two years’ income tax returns and Form 16.

  • Self-Employed Professionals - Two years’ income tax returns with computation of income, an audited balance sheet, profit and loss account including the tax audit report if applicable, and proof of business turnover based on the latest sales and services tax returns.

• Details of all existing bank loans

• Partnership deed (if it is a partnership firm).

• Documents for Private/Public Limited Company: Memorandum and article of association, a list of directors and shareholders in case of a private or public limited company.

• Property Documents: Attach copies of all property documents.

Yes Bank Loan Against Property EMI and Interest Calculator

The EMI calculator of Yes Bank helps determine your monthly EMIs at various rates of interest. Higher the loan amount; higher will the EMIs. On the other hand, a higher loan tenure reduces your EMI amount. You can compare the estimated EMI with your monthly repayment capacity to decide on a level of EMI that you can comfortably deduct from your income without creating a financial burden. Another factor that affects your EMI is the interest rate. Higher is the interest rate; higher will be the EMI. However, your cumulative interest will be significantly high in a longer tenure as compared to a short tenure loan. Interest rate comparison of different banks can help you get the cheapest loan.

How to Apply for Yes Bank Loan Against Property

You can apply for a property loan from Yes Bank by contacting the bank directly or by visiting the bank’s official website. Approaching the bank online improves the chances of getting better loan rates, low processing fees, and exclusive discounts in the form of cash backs. Once you visit the bank, the bank executive will collect your documents and initiate the loan process, which includes:

• Checking your credit score

• Property valuation

• Technical and legal checks on the property

• Eligibility calculation

The bank will then approve your loan based on the evaluation results.

FAQs

What is the interest rate of loan against property from Yes Bank?

Yes bank offers loan against property at an interest rate of 10.50%, with the lowest EMI being ?1,105. Currently, if you are paying a higher interest rate to another bank, then you can apply for a balance transfer of the loan to Yes Bank.

What is the maximum tenure that I can opt under Yes Bank property loan?

Yes bank offers you a long tenure of 15 years to repay your loan, with the benefit of paying less EMI/month.

What is the benchmark rate applicable for a loan against property?

The benchmark rate applicable for a property loan in Yes Bank is 1 year’s MCLR.

Do I get a tax benefit on loan against property from Yes Bank?

There are no tax benefits available for Yes Bank loans against property.