Yes Bank

YES BANK LOAN AGAINST PROPERTY

Apply Yes Bank Loan Against Property

Yes Bank Loan Against Property

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.

Yes Bank Loan Against Property

A loan against property is one of the best ways to unleash the power of your property. The loan against property allows you to meet your heavy urgent financial needs without selling off your real estate. Any individual who has a property in his/her name can mortgage the same and avail immediate funds to meet personal or business requirements. The property will roll back to its clear title ones the loan against property is repaid in full. Yes Bank offers quick and hassle-free loan against residential and commercial properties. The competitive rate of interest and other features make it the most lucrative proposition.

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 health 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.

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 Amount

Up to 85% of the market value of the property is allowed as loan against property

Rate of Interest

Yes Bank issues loan against property at rate of interest starting from 10.50% p.a.

Loan Tenure

 Maximum of 15 years are allowed as a loan term for loan against property

Security

The 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 Fee

Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000.

Prepayment Charges

No 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:

Purpose

The 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 loan

The 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.

Margin

A margin of 20% on the net present value of future rentals and 50% on the market value of the property.

Repayment Tenure

The loan should be repaid in maximum of 7 years.

Rate of Interest

A competitive rate starting at 10.50% p.a.

Security

The property in question must be set as a collateral security with the bank. The property can be residential or commercial.

Processing Fee

Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000.

Prepayment Charges

No 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.

Purpose

The funds availed from Drop-line Overdraft facility can be utilized for any personal or business need.

Quantum of Loan

The 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 Tenure

Drop-line overdraft facility is a running account which is renewed every year. However, the maximum tenure is up to 15 years

Rate of Interest

A competitive rate starting at 10.50% p.a.

Security

The property in question must be set as a collateral security with the bank. The property can be residential or commercial.

Processing Fee

Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000.

Prepayment Charges

No 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/Charge

Fee/Charge Amount

 

Term Loan

Lease Rental Discounting

Drop-Line Overdraft

Stamp duty

Actual and as applicable as per State law

Login Fees

Upfront, one time maximum of 10,000

Account Maintenance charges

NIL

One time 10,000

5,000 p.a.

Non Utilization of Limit

NA

NA

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 Charges

2% per month on overdue amount

Duplicate No Due Certificate/NOC

100/- + GST per request

Cheque bounce charges

750/- + GST per instance

Cheque swapping charges

500/- + GST per instance

Loan cancelation charges

5000 per instance

Repossession charges

On actual

Switching fees (higher floating interest rate to lower floating rate)

0.50% on the outstanding balance

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 Record

In 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

    f
  • 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 Record

In case of existing and ongoing loans, 6 month bank account statement

Why Apply for Yes Bank Loan Against Property through MyMoneyMantra?

Yes Bank offers secured loans at the lowest rates of interest. The loan against property is feature packed and come with a host of lucrative benefits. MyMoneyMantra further makes your search for the ideal loan easy and hassle-free. The online portal brings together the features of different products and services offered by various banks and lending institutions and allows the customer to compare and contrast before choosing the best pick.

MyMoneyMantra deals in the entire spectrum of products offered by BFSI (Banking and Financial Services) Industry. It is important and crucial for the customer to understand the fine points of the banking products and services offered by different banks and non-banking financial companies. Through its comprehensive coalition of information, MyMoneyMantra makes this task easy and hassle. The customer is no longer required to visit different bank branches or meet representatives to gather information. MyMoneyMantra brings together extensive and diverse information from different lenders and acts as a platform to acquire and assess information.

The portal also enables its customers to strategically use financial tools like EMI calculator and loan eligibility calculator to reach the most ideal outflow amount without getting into the debt trap.

The operations and navigation of the website is self-explanatory and thus easy to use even for a layman.

Customers can enjoy the following services on MyMoneyMantra:

  • Accurate evaluation of loan eligibility based on previous repayment history and banking track record.
  • Accurately assess repayment capacity based on inflows and outflows.
  • Allows easy comparison among similar products offered by different financial institutions.
  • Understand the loan application process and complete the procedure in a systematic manner.
  • Understand the fine points like rate of interest, processing fee and other charges finally selecting the best deal.

Why use a Yes Bank Loan Against Property EMI Calculator on MyMoneyMantra?

Filling up the application form and submitting the requisite documents is the paramount in the loan application process. But it is important to know the total principal amount and related EMI before filling up the loan form. This is vital because it makes the borrower aware of the total outflow that will be incurred during the course of the loan. An inappropriately calculated EMI can mount troubles for the borrower. MyMoneyMantra thus offers a valuable financial tool; the Loan against Property EMI Calculator. The use of the EMI calculator enables the borrower to calculate the ideal EMI amount. The tool is therefore advantageous to both lender and borrower. If prudently, the EMI calculator creates a win-win situation for the borrower and lender.

The EMI is a long term expense. It is to be paid for the whole tenure of the loan. Too high EMI can mount financial stress, whereas too low outflow per month makes the loan unviable and expensive.

The table below shows the value of EMI calculated for different principal amount and loan tenures. The rate of interest remains fixed at 10.50% p.a. This is the lowest rate of interest charged by Yes Bank for its different variants of loan against property. The lowest EMI of loan against property taken from Yes Bank is 1,105 per lakh for a loan term of 15 years.

Principal Amount

Loan Tenure

 

7 Years

10 Years

15 Years

25,00,000

42,152

33,734

27,635

50,00,000

84,303

67,467

55,270

100,00,000

1,68,607

1,34,935

1,10,540

The above table indicates the amount of EMI payable per month for different principal amount and loan tenures for loan against property availed from Yes Bank. As evident from the table, an increase in loan term leads to a drop in the EMI. But with every drop in EMI, the loan turns out to be more expensive. An amortization schedule therefore proves helpful when applying for a Yes Bank loan against property.

EMI is made up of two components - principle and interest. While the EMI amount is fixed throughout the loan period, its break-up or ratio keeps changing upon every payment of the EMI. The amortization schedule is a Performa that makes the borrower aware of the month-wise breakup of the EMI instalment. It also indicates the proportion of reducing balance of each component.

The table below highlights the Principal to Interest break-up of EMI for a Yes Bank loan against property of 1 lakh. Rate of interest used for calculations is 10.50% p.a.

 

7 Years

10 Years

15 Years

EMI

1,686

1,349

1,105

Total Interest Payable

41,630

61,922

98,972

Total Payment
(Principal + Interest)

1,41,630

1,61,922

1,98,972

Principal to Interest break-up

70.6 : 29.4

61.8 : 38.2

50.3 : 49.7

As the loan period increases, the amount of EMI for loan against property drops significantly. But the amount of interest paid on the principal amount increases which makes a loan against property an expensive proposition especially when availed for a very long time. For example, in case of a loan against property of 1 lakh, the borrower will repay a total of 1,41,630 in 7 years as against an outflow of 1,98,972 in 15 years. Despite the same principal amount and rate of interest, the borrower will have to pay an additional 57,342 as interest to the bank for availing the loan for an additional 8 years. The effect can also be seen from the principal-interest ratio which keeps moving skewing towards the interest portion as the loan tenure increases.

Thus a careful assessment of income and outflows is necessary before ascertaining the ideal amount of EMI and loan term.  

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.

Frequently Asked Questions

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

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?

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?

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?

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.

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