The YES Bank business loan caters to the varying needs of businesses at various stages. Whether it’s getting your new venture off the ground or expanding the business line, the loan can help you get the financing you need to accomplish your goals.
From purchasing commercial assets to upgrading operations, you can avail the YES Bank business loan for a maximum amount of up to ₹50 Lakhs. Furthermore, you do not need to pledge your assets as security as it is an unsecured loan.
That’s not all, in terms of the business loan interest rate, YES Bank is one of the leading lenders offering competitive rates. To better understand the YES Bank business loan eligibility criteria and its features, read on.
The YES Bank business loan rate of interest varies according to the business requirements and existing MCLR (Marginal Cost of Funds based Lending Rate). MCLR works as the benchmark for the interest rates at which banks offer loans.
Fixing this rate creates transparency among banks and NBFCs when deciding their interest rates. According to the current data, YES Bank’s MCLR varies from 7.60% to 9.05%. These rates are revised by the bank every month, based on which the bank fixes the interest rates for loans.
In addition, following the charges associated with a YES Bank business loan:
Interest rate |
Starting from 16% per annum |
Processing fee |
2% - 3% |
Loan prepayment charges |
Charges for prepayment/foreclosure after 6 months: 7-24 months – 4% of the outstanding 25-36 months – 3% of the outstanding 37-48 months – 2% of the outstanding >48 months – Nil |
Late payment of EMI charges |
24% per annum |
Renewal fee |
Starting at ₹50, varies as per the debt record |
Cheque bounce charges |
₹750 per incident |
Loan cancellation/ rebooking charges |
₹1000 + interest for the period between disbursement date and cancellation date |
**Disclaimer The above rates are subject to change at the bank’s discretion.
Regarding the charges, note that you can foreclose or prepay the loan only after paying at least 6 EMI payments. Before availing the YES Bank business loan, assess all these charges properly to get a better idea about your borrowing costs. This can then help you manage the loan hassle-free.
The YES Bank business loan calculator is an online tool that helps determine your monthly payments. Thanks to the digital option, you can calculate your EMIs from anywhere and any number of times.
Simply enter the amount you want to borrow, the prevailing interest rate and the repayment tenure. In just a few clicks, you can get the following details on your screen:
Monthly EMI
Principal Amount
Total Interest
Total amount payable
For a better understanding, consider this example. Assume you avail a YES Bank business loan of ₹20 Lakhs at an interest rate of 17.75% for a repayment tenure of 3 years. Here is an estimate of your repayment using the business loan EMI calculator.
Principal Amount: ₹20 Lakhs
Monthly EMI: ₹72,054
Total Interest Payable: ₹5,93,952
Total Amount: ₹25,93,952
With this information you can assess your repayment capacity in advance and plan your finances efficiently.
For quick loan approval, you must submit all the paperwork required by the lender. Here are a few essential YES Bank business loan documents to submit and ensure a seamless, hassle-free approval.
Application form along with recent passport-size photographs
PAN Card of self or the company
Voter ID card
Driving licence
Passport
Bank statement of previous 6 months
Latest ITR copies with financial statements
Trade licence or other continuation proof (sales tax certificate, ITR, establishment certification)
Mandatory documents such as Memorandum copy, Partnership Deed copy, Original Board Resolution
Apart from the above YES Bank business loan documents, you may or may not need to submit additional documents. This depends on the type of loan you avail and should be confirmed while applying.
Meeting the YES Bank business loan eligibility criteria is crucial before availing a loan. Here are a few parameters you need to match, per the bank’s norms.
Minimum age requirement is between 21 and 25 years
Maximum age limit is between 65-68 years at loan maturity
CIBIL score of 750 or above
The following entities can avail the YES Bank business loan:
Sole Proprietorships
Limited Liability Partnerships
Self-employed individuals
Private firms
Traders
Manufacturers
Professionals, including doctors, chartered accountants, architects etc.
Here are a few essential features of the business loan:
No need to pledge any collateral
Quick loan disbursement of up to ₹50 Lakhs after approval
Flexibility in using the loan amount, from purchasing machinery to setting up a new business or even for expansion
Convenient repayment tenure ranging between 12 and 60 months
Easy access to the business loan for both small and established enterprises
Minimal documentation
Competitive interest rates
You can apply for a loan online or offline. To initiate the offline process, visit any YES Bank branch and complete the documentation. Follow the steps mentioned below for an online process:
Visit the YES Bank official website.
Select ‘Business Banking’.
Choose the option ‘Loan in Seconds’.
Select ‘Business Loan’.
Click on the ‘Apply Now’ option.
Fill in the required details to initiate the process.
Given below are the prevailing interest rates for business loans from other banks. Be sure to compare these details before you avail a YES Banks business loan to get the best deals.
Our Partners |
Interest Rate Range |
Max Loan Amount/ Tenure |
Avail Loan |
20% onwards |
36 months |
||
28% onwards |
36 months |
||
12% onwards |
36 months |
||
18% onwards |
60 months |
||
20% onwards |
48 months |
||
16% onwards |
36 months |
||
15% onwards |
9 months |
||
15% onwards |
36 months |
||
1.25% p.m. onwards |
72 months |
**Disclaimer: The above rates are subject to change at the bank’s discretion.
When the turnover in a business is good, getting loan approval isn’t difficult. However, various lenders set different criteria to validate the authenticity of your business. Based on the valuation and other factors, banks decide the interest rate for your loan.
Here are a few factors determining the interest rate for a YES Bank business loan:
Business type, whether it is a partnership, sole proprietorship, private or public limited
Business profits
Business cash flow
Maximum business turnover
Business track record
CIBIL score of the firm
For any query regarding loan eligibility or approval, you can get quick resolutions by calling customer care at 1800 1200 (Toll-free number). Alternatively, you can also contact customer care at +91 22 61219000.
While the business loan application process at YES Bank is easy, make sure to compare interest rates across lenders before selecting the lender. Visit Bajaj Markets to know the business loan interest rates from various lenders and for an easy comparison.
The interest rate depends on numerous factors, even for existing customers. However, having a good credit score and a trustworthy relationship with YES Bank can help you get better deals on interest rates.
Interest rates vary from 11.75% p.a. up to 32% p.a.
The YES Bank unsecured business loan is one of the top reasons to avail it as it makes the process a lot simpler. In fact, this feature can help you avoid costly delays.
Loan against Property
Business loans
Construction equipment loan
Printing equipment and healthcare loan
Commercial vehicle loan
Supply chain banking
Cash-backed lending program
Smart overdraft facility
YES Spark
Scorecard based lending
Smart edge
The repayment tenure varies from 1 to 5 years when you avail a business loan from YES Bank.