YES Bank Business Loan
Funding sources are required for purposes like buying machinery, working capital funding, or for expansion of a business. YES Bank offers business loans at competitive interest rates starting from 17% with a repayment tenure of up to 60 months. YES Bank offers a loan amount of up to �50 lakh for easy financial access.
Features & Benefits of YES Bank Business Loan
The features and benefits mentioned below are a testament to the credibility of the YES Bank business loans.
- YES Bank offers a higher loan amount than its competitors of up to ₹50 lakh.
- Flexibility in repayment tenures ranging from 12 to 60 months.
- The retail business loans by YES Bank can be availed without any collateral.
- All the charges including the interest rate will be conveyed to the applicant with full transparency.
- On 20 January 2021, a YES MSME loan scheme was introduced by the YES Bank through which MSMEs and startups will be able to avail a loan amount of up to ₹ 5 crores without pledging any collateral.
- YES Bank also offers pre-approved commercial credit cards, and wealth and advisory management solutions for its customers.
Yes Bank Business Loan Overview
Funding sources are required for purposes like buying machinery, working capital funding, or for expansion of a business. YES Bank offers business loans at competitive interest rates starting from 17% with a repayment tenure of up to 60 months. YES Bank offers a loan amount of up to ₹50 lakh for easy financial access.
- Yes Bank offers attractive lending solutions for business owners and MSMEs.
- Collateral free business loans to reduce burden.
- Minimal processing fee and comparatively lower interest rates.
Eligibility Criteria for YES Bank Business LoanThe following applicants will be able to meet the YES Bank business loan eligibility criteria:
|Age range||25 - 68 years|
|Applicant Type||A part of MSME business in the service, manufacturing, and trading sectors|
|Eligible Entities||Sole Proprietorships, Pvt. Ltd. Company, Self Employed Professionals, Limited Liability Partnerships, Closed Held Companies, and Partnerships|
|Additional Entities||Professionals (who are CA, Doctor, CS, and Architects) and Non-Professionals (Manufacturer, Service, Traders)|
Factors Affecting YES Bank Business Loan Eligibility
Applicants must be aware of the fact that the banks and NBFCs are in a position to reject the application if it does not meet their requirements. These parameters affect the YES Bank business loan eligibility:
YES Bank offers business loans to individuals who are at least 25 years of age at the stage of loan approval and 65 years of age at the stage of loan maturity.
Loan AmountThe YES Bank business loan amount ranges from ₹5 lakh to ₹50 lakh.
Revenue and Profitability
Your business should be in profit for the last 2 years. The business turnover should be of a minimum of ₹1,00,00,000.
Stability of Business
The track performance of the business must be of at least 36 months. The minimum upsurge in sales of three years is also verified by the bank before approving the loan. A declining pattern in sales or below a certain number might affect your YES Bank business loan eligibility.
Banking and ITR
Your bank statements and ITR are also double-checked by the bank. ITR details of 24 months and the bank statements of 6 months are a prerequisite to apply for YES Bank business loan.
YES Bank will scrutinise your credit history and repayments for all past credit cards and loans. A 750 CIBIL score or above is considered a benchmark by the bank.
YES Bank Business Loan Fees and Charges
YES Bank business loan requirements include charges other than the basic interest rate. Have a look at the table below to learn about these fees.
Pre Disbursement Charges
|Rack Interest Rate||17% and onwards|
|Other statutory charges and stamp duty||According to the laws of the state|
|Processing charges amount||2%-2.5% of loan amount|
Post Disbursement Charges
|Re-Booking and loan cancellation charges||₹1000 (In the event of cancellation, an interest will be charged for the period between the date of disbursement and date of loan cancellation)|
|Late Payment Charges (Principal overdue/for the overdue period on EMI)/Defaulted Interest Rate||24% per annum|
|Cheque Bounce Charges||₹750 per instance|
|Cheque Swapping Charges||₹750 per transaction|
|Loan Prepayment Charges||Foreclosure or prepayment of loan can only be done after the payment of 6 EMIs. After 06 months the charges will be as under: 07-24 Months 4% of Principal Outstanding 25-36 Months 3% of Principal Outstanding 37-48 Months 2% of Principal Outstanding > 48 Months Nil|
|Part Prepayment Charges||Part Prepayment not permitted|
|Duplicate Repayment Schedule||Rs. 750 per schedule|
|Duplicate NOC/NDC Issuance charge||Rs. 250 per statement|
|Duplicate Statement of Account charges||Rs. 750 per statement|
Note: The above-mentioned fees, charges, and interest rate are subject to change at the sole discretion of the bank, RBI and NBFC. Service tax and GST shall also be levied over and above the charges.
YES Bank Business Loan Interest Rates
|Range of Rack Interest Rate||17% onwards|
|Processing Fee||2% - 2.5% of loan amount|
|Loan Amount||Up to ₹50 lakh|
|Tenure of Repayment||12 to 60 months|
|Pre-payment Charges||No charges till 6 months|
Factors Affecting YES Bank Business Loan Interest Rates
All borrowers aim for a high amount of business loans with a low-interest rate. However, there are various factors that a bank or financial institution keeps in mind before offering a rate of interest to an individual. Some of these parameters are:
- CIBIL score of the business/company
- Business Type: Partnership, Proprietorship, Public Limited or Private Limited
- The business turnover
- Cash flow of the business
- Repayment history of the business
How Does YES Bank Compare with Other Lenders?Glance at the table below to understand the YES BANK business loan interest rate in comparison to the other lenders.
|Lenders||Rate of Interest (per annum)|
|SBI||8.30% onwards (on SME Loan)|
|Kotak Mahindra Bank||14% onwards|
|Axis Bank||17% onwards|
|Fullerton Finance||17% onwards|
|Bajaj Finserv||17% onwards|
|HDFC Bank||11.90% to 21.35%|
|ICICI Bank||18% onwards|
|Lendingkart Finance||18% onwards|
|IIFL Finance||18% onwards|
|Hero Fincorp||18% onwards|
|Indifi Finance||18% onwards|
|NeoGrowth Finance||18% onwards|
|Tata Capital Finance||17% onwards|
|RBL Bank||19% onwards|
|IDFC First Bank||20% onwards|
|HDB Financial Services Ltd.||22% onwards|
|PNB Business Loan||Based on the Business’s Profile|
|Bank of Baroda||Based on the Business’s Profile|
Documents Required for YES Bank Business Loan
- Complete application form with passport size photographs
- Business PAN card
- Business incorporation proof
- KYC of co-applicant and applicant
- Audited financials of 2 years with annexures
- Bank statement of the preceding 6 months
- Trade Licences/Certificates/Permits (if any)
YES Bank Business Loan Customer Care Number
For any query related to YES Bank business loan requirements, the applicants can contact customer care at the toll-free number 1800 1200 or at +91 22 61219000.
From refinancing to reducing your interest, we have the answers right here.
What is loan foreclosure?
Loan foreclosure is to repay the remaining or outstanding loan amount in a single payment than repaying it in multiple EMIs.
What is the minimum turnover requirement to apply for a YES Bank business loan?
The minimum turnover required to apply for YES Bank business loan is ₹1 crore or more.
Does YES Bank check for CIBIL score for business loans?
Yes, banks and financial institutions check your CIBIL score before approving your business loan.
What is the maximum and minimum business loan amount I can get from YES Bank?
YES BANK offers a business loan ranging from ₹5 lakh to ₹50 lakh.
How can I speed up my loan approval?
To speed up the loan approval process you should apply for your loan online, know your credit score and apply for a loan in your bank among other things.
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