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Yes Bank Loan Against Property Details

A loan against property is an advance wherein a property is mortgaged to avail the loan. The funds received from availing a loan against property can be utilised for any purpose provided it should be of speculative nature. The money can be used to upgrade business, fund personal need like medical expenses, education, marriage or vacation. The borrower is not required to submit an end-use certificate. The property which is set as collateral remains mortgaged with the bank until the loan is liquidated in full. The repayment of the loan against property is made through EMI i.e. Equal Monthly Instalments.

Tip: Check free cibil score before applying for a loan

Eligibility for Yes Bank Loan Against Property

To avail a Yes Bank loan against property the borrower must fulfil the following conditions:

  • Employees of Central/State Government Organisations, PSUs, Reputed Companies and MNCs are eligible to seek loan against property.
  • Self-employed professionals and non-professionals can apply for a loan against property provided they have a minimum cash profit of 4 lakh per annum and should be in business for at least 3 years.
  • Salaried employees with private or government jobs can apply for a loan against property subject to their minimum annual income of 3 lakh and should be in ob for at least 3 years.
  • For cases where income is considered for loan against property, the age of the applicant should be at least 23 years and a maximum of 65 years or retirement age, whichever is less at time of maturity of loan.
  • For cases where income is not considered for eligibility, applicant must be minimum of 18 years of age and maximum of 70 years. All loans should be liquidated before the borrower turns 85 years.
  • Maximum loan amount up to 85% of the market value of the property is allowed as loan against property.
  • The loan must be repaid in maximum of 15 years.
  • The applicant should have a good banking track record and a healthy credit score.

Interest Rate and Charges for Yes Bank Loan Against Property

The interest rate on Yes Bank Loan Against Property is charged at floating rates. The rates as on Oct 1, 2019 is set at 10.50% p.a.

Additional Reading: Cibil score check free online by pan number

Types of Yes Bank Loan Against Property

Yes Bank offers loan against property under 3 heads. The features and key points of all 3 schemes are as under:

Loan Against Property:

Purpose of Loan
  • Loan against property can be availed for business or personal needs. It can be used for purchase, extension of property, education, medical expense, wedding, vacation, etc.
  • Borrower is not required to submit an end-use certificate.
  • Borrower cannot use the proceeds for trading or speculation purpose
Loan AmountUp to 85% of the market value of the property is allowed as loan against property
Rate of InterestYes Bank issues loan against property interest rate starting from 10.50% p.a.
Loan Tenure Maximum of 15 years are allowed as a loan term for loan against property
SecurityThe property against which the loan is sought is set as collateral and is mortgaged with the bank until the loan is repaid in full.
Processing FeeMaximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000.
Prepayment ChargesNo fee is charged in case a loan against property is prepaid.
Foreclosure Charges
  • 4% of the outstanding principal amount is charged to foreclose a loan against property.
  • Foreclosure is not allowed within 12 months from the date of loan disbursal

Lease Rental Discounting

Lease Rental Discounting is a term loan facility. It is a collateral backed loan. It is offered against rental income received by applicant leased out properties and contracts. The lease rental discounting loan against property is offered depending upon the market value of a property and the discounted value of rentals.

The main features of this loan are:

PurposeThe loan availed under lease rental discounting can be used for business expansion, working capital inflow, renovation of interiors, purchase of commercial property,  or any personal or business need. The purpose should not be speculative in nature.
Quantum of loanThe maximum loan amount available under lease rental discounting is up to 10 Crores. However it can go up to 15 Crores subject to lessee profile and other internal policy terms and conditions.
MarginA margin of 20% on the net present value of future rentals and 50% on the market value of the property.
Repayment TenureThe loan should be repaid in maximum of 7 years.
Rate of InterestA competitive rate starting at 10.50% p.a.
SecurityThe property in question must be set as a collateral security with the bank. The property can be residential or commercial.
Processing FeeMaximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000.
Prepayment ChargesNo fee is charged in case a loan against property is prepaid.
Foreclosure Charges
  • 4% of the outstanding principal amount is charged to foreclose a lease rental discounting loan against property.
  • Foreclosure is not allowed within 12 months from the date of loan disbursal

Drop-Line Overdraft Facilities Against Property

Drop-line Overdraft facility is an overdraft facility backed by collateral security i.e. a property. It comes with a monthly limit drop and fixed repayment tenure. The interest is paid only on the amount which is withdrawn and utilized.

PurposeThe funds availed from Drop-line Overdraft facility can be utilized for any personal or business need.
Quantum of LoanThe overdraft limit is set and can be renewed every year. The entire amount is not disbursed in one go. The maximum loan amount depends on the value of the property.
Repayment TenureDrop-line overdraft facility is a running account which is renewed every year. However, the maximum tenure is up to 15 years
Rate of InterestA competitive rate starting at 10.50% p.a.
SecurityThe property in question must be set as a collateral security with the bank. The property can be residential or commercial.
Processing FeeMaximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000.
Prepayment ChargesNo fee is charged in case a loan against property is prepaid.
Foreclosure Charges
  • 4% of the outstanding principal amount is charged to foreclose a lease rental discounting loan against property.
  • Foreclosure is not allowed within 12 months from the date of loan disbursal

Advantage of taking Yes Bank Loan Against Property

When you take a Yes Bank loan against property, you enjoy the following benefits:

  • Option to go in for different types of loan against property.
  • You avail secure loan in a quick and hassle-free manner.
  • Enjoy lowest rate of interest on loan against property @ 10.50% p.a.
  • Avail balance transfer facility to transfer outstanding balance of the existing loan to a low rate of interest option.
  • No hidden charges.
  • Flexible repayment option.
  • Owner enjoys ownership rights even upon non-repayment of loan. The property will not be attached by the bank. Instead, the borrower will sell off the property to repay the outstanding bank loan and utilize the remaining funds for personal use.

The other charges for Yes Bank Loan Against Property are as under:

Type of Fee/ChargeFee/Charge Amount
 Term LoanLease Rental DiscountingDrop-Line Overdraft
Stamp dutyActual and as applicable as per State law
Login FeesUpfront, one time maximum of 10,000
Account Maintenance chargesNILOne time 10,0005,000 p.a.
Non Utilization of LimitNANA

Overdraft below 40% of the allowed limit will be charged @

  • 5,000 per quarter for overdraft limit up to 1 crore
  • 7,500 per quarter for limit between 1 to 3 crore
  • 10,000 per quarter for limit above 3 crore.
Late Payment Charges2% per month on overdue amount
Duplicate No Due Certificate/NOC100/- + GST per request
Cheque bounce charges750/- + GST per instance
Cheque swapping charges500/- + GST per instance
Loan cancelation charges5000 per instance
Repossession chargesOn actual
Switching fees (higher floating interest rate to lower floating rate)0.50% on the outstanding balance

Follow the link for: Cibil Login Registration

Documents required for Yes Bank Loan Against Property

Customers need to submit the following documents when applying for a loan against property.

Salaried Employees

Proof Of Identity

Passport size photograph of the applicant

  • Passport
  • Dving License
  • Aadhar Card
  • PAN Card
  • Voter ID
  • Form 60/61
  • Ration Card
Proof Of Residence
  • Telephone Bill
  • Electricity Bill
  • Property Tax Receipt
  • Passport
  • Voter ID
  • Utility bill should not be older than 3 months
Proof Of Income
  • Latest Income Tax Return
  • 3 latest salary slip
  • Form 16 for last 2 years
  • bank statement
  • proof of signature
Property Ownership Documents
  • conveyance deed
  • allotment letter
  • sale deed
  • latest property tax receipt
  • approved building plan
  • title deed documents for 30 year
  • proof of title in Revenue Records
  • possession letter
  • power of attorney
  • copy of the approved plan of construction or extension
  • occupancy certificate
Proof Of Banking RecordIn case of existing and ongoing loans, 6 month bank account statement

For Self-Employed

Proof Of Identity
  • Passport size photograph of the applicant
  • Passport
  • Driving License
  • Aadhar Card
  • PAN Card
  • Voter ID
  • Form 60/61
  • Ration Card
Proof Of Residence
  • Telephone Bill
  • Electricity Bill
  • Property Tax Receipt
  • Passport
  • Voter ID
  • Utility bill should not be older than 3 months
Proof Of Income
  • Last 2 years IT return with computation of income
  • Audited balance sheet
  • Audited profit & loss account (attach tax audit report if applicable)
  • Proof of turnover vide latest sales
  • Service tax returns
Property Ownership Documents
  • conveyance deed
  • allotment letter
  • sale deed
  • latest property tax receipt
  • approved building plan
  • title deed documents for 30 year
  • proof of title in Revenue Records
  • possession letter
  • power of attorney
  • copy of the approved plan of construction or extension
  • occupancy certificate
Proof Of Banking RecordIn case of existing and ongoing loans, 6 month bank account statement

How to use MyMoneyMantra Loan Against Property EMI Calculator?

The EMI calculator for Loan Against Property available on MyMoneyMantra is not only easy to use but also promises accurate results. The portal brings together all the information required to calculate loan eligibility on a single screen. MyMoneyMantra also allows users to compare the information closely before taking the final call. One can also compare fine details like current interest rates, processing fees, pre-payment charges from various lending institutions, all on one portal.

The Loan Against Property calculator helps you adjudge your loan eligibility. Loan seekers must also ascertain the EMI amount. The calculation can be done through these simple steps:

  • Log in to the website mymoneymantra.com
  • Navigate to the financial tool tab and choose EMI calculator link from the drop down menu.
  • Enter the information for loan amount, rate of interest and loan tenure.
  • Upon submitting the information the EMI amount to the corresponding inputs will appear on the screen.
  • Make changes to the three parameters to reach the best-fit EMI amount.
  • Check loan eligibility and apply for the Yes Bank loan against property directly through MyMoneyMantra.

A representative will further assist you until the loan amount is disbursed.

Also Check: CIBIL Defaulters List

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Pre-Approved ICICI Loan Against Property @8.35% p.a 

ICICI bank loan against property up to Rs. 5 Crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers. 

Yes Bank Loan Against Property FAQs

How is the interest calculated on drop-line overdraft facility?

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The interest on drop-line overdraft facility is charged only on the amount withdrawn/utilized and only for the time period for which it is utilized and remains unpaid. Interest is calculated on a daily reducing balance and is charged on a monthly basis.

What is the minimum and maximum duration of availing a loan against property?

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Customers can avail Yes Bank loan against property. The same can be repaid in a minimum of 1 year and a maximum of 15 years.

What is the rate of interest charged by Yes Bank for loan against property?

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Yes Bank charges a rate of interest that is linked to Marginal Cost of Lending Rate (MCLR) applicable on the date of loan approval and disbursal. Currently Yes Bank charges a rate of interest of 10.50% p.a. for loan against property.

What is the maximum amount that Yes Bank funds for loan against property?

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Yes Bank allows minimum funding up to 70% of the cost of residential property and 60% of the cost of the commercial property as principal amount. The margin amount can go up to 85% and 70% of the cost of residential and commercial property, respectively.