YES BANK Personal Loan Interest Rates

You can get a YES BANK Personal Loan at interest rates starting from 0.92% per month for tenures of up to 60 months. The rates offered to you may vary based on your employment, debt-to-income ratio (DTI), credit score, and more. Thus, it is essential to know more about the interest rates and the factors which affect them. Also, be sure to check all the additional charges associated with the loan which directly impact the total repayment costs. 

Let’s get a detailed view of the interest rates of a YES BANK Personal Loan:

*Disclaimer: The mentioned values are subject to change at the lender’s discretion.

Here are some additional charges to consider before applying for a YES BANK Personal Loan:

*Disclaimer: The mentioned values are subject to change at the lender’s discretion.

Some common factors which may affect your personal loan interest rate are as follows:

Income 

Your ability to repay debts is indicated by your income. A higher income lowers the likelihood of default. The lender's related risk is decreased as a result. Consequently, the lender will be more inclined to grant reduced interest rates.

Job Stability

Lenders may have a negative view of those who change jobs frequently. It does not guarantee a steady source of income, which can lead to issues at the time of loan repayment. Lenders typically give higher rates to such applicants in an effort to reduce this risk. 

Credit Score

Usually, a lender will look at your credit score to determine how creditworthy you are. Generally speaking, a high score denotes appropriate credit behaviour. As a result, you become a low-risk borrower and are qualified for lower interest rates.

Tenure of the Loan

The rates for loans with shorter terms are often higher than those for loans with longer tenures. However, in the case of the latter, the loan's overall cost may rise as the interest accrues over a longer period. 

Type of Employment

Your employment status has an impact on the interest rate that is offered. A lower interest rate is more likely to be granted to those with salaried positions. They are seen as low-risk borrowers due to their stable, fixed income, unlike self-employed applicants. 

DTI Ratio

The portion of your income that goes toward paying off debt is highlighted by this ratio. A lower percentage gives the lender confidence in your ability to repay the loan. You may be able to obtain more flexible loan terms and lower interest rates as a result.

Financial Situation

The interest rates may change if inflation rates and bank policies are revised. Usually, the rates increase in case the benchmark rates rise due to inflation. Similarly, other macroeconomic factors like inflation can majorly impact the rates offered to you.

Collateral Submitted

You can get better loan terms if you choose to submit your asset as security for the loan. In the event of a default, the asset may be utilised by the lender to recover the loan balance. They are thus more likely to offer a lower personal loan interest rate.

To understand how your loan EMI is calculated, let’s consider an example. Assume you took a personal loan of ₹10,000. The tenure is 1 year and interest rate is 10.99% p.a. Substitute these values in the following formula:

 

EMI = P x R x (1+R) ^N / [(1+R) ^N-1]

 

Where,

• EMI = The instalment amount to be paid each month

• P = The amount to be borrowed from Kotak Mahindra Bank

• N = The period over which you wish to repay the loan

• R = The rate of interest charged on the loan

 

By solving this equation you will find out the monthly instalment amount, which is ₹883.77. However, this can be quite tedious and prone to errors. Instead, consider using a personal loan EMI calculator, available on Bajaj Markets. You can get the required calculations done within seconds. You can also adjust the loan terms again and again to try various combinations without having to pay any charges. This will help you find loan terms that suit your requirements and preferences.