Yes Bank Personal Loan Interest Rate 7th March 2021
||12 months to 60 months
||Rs.1 lakh to Rs. 40 lakhs
Up to 2.50% of the loan amount
But the minimum fee is Rs. 999
|Part Prepayment Charges
||2%, you can choose it after 12 EMIs
You can foreclose after 12 EMIs
Charges applicable over principal outstanding
13 to 24 months: 4%
25 to 36 months: 3%
37 to 48 months: 2%
More than 48 Months: Nil
Yes Bank Personal Loan Interest Rate starts from 10.99%. The lowest EMI for Rs. 1 lakh at best rate and 60 months tenure is Rs. 2,174. The loan amount is between 1 lakh and Rs. 40 lakhs. You can borrow if in the age group of 21 years and 60 years. The funds are available to both self-employed professionals and salaried individuals. The loan is unsecured in nature, no collateral is required to avail it. You can use the amount for any need such as medical emergency, short-term expense, travel, home repair, education of children, big-ticket purchase, etc.
In the post below we will discuss about Yes Bank Personal Loan features, fees and charges, factors that influence the rate of interest, illustration of loan’s total cost, interest calculation, EMI calculation, and frequently asked questions.
Features of Yes Bank Personal Loan Interest Rate
Here are the following features:
The interest rate by the bank is 10.99% onward.
The processing fee is up to 2% of borrowed amount, exclusive of taxes.
If you work for a government department, reputed company, or bank, then you may be eligible for lower rates and better offers.
You can foreclose the loan or opt for part payment after paying the first 12 EMIs.
You can even choose a top-up loan over the existing loan. The starting rate for the same is 10.99%.
Yes Bank Personal Loan Fees and Charges
Apart from the interest rate, you need to understand the other applicable charges. Knowing about the same will help you calculate the loan’s total cost and take an informed decision.
- Processing Fee: This fee amount is either added to the first EMI or subtracted from the disbursal amount. It is a non-refundable fee charged for the legal procedures for loan processing and disbursal. The bank charges up to 2.50% of the loan amount + tax, subject to minimum Rs. 999.
- Foreclosure Charges: You can preclose the loan before the tenure’s end after paying the first 12 EMIs. Foreclosing the loan will help save big on the interest outgo. The charges are 4% if done between 13 and 24 months, 3% when done between 25 and 36 months, and 2% when done between 37 and 48 months. No charges apply if done after 48 months.
- Part Payment Charges: You can pay a part of the due amount before the end of tenure. This will reduce the interest payout and make the EMIs smaller. The bank charges up to 2% for the same. You can part-pay the amount after 12 EMIs. You can choose part prepayment once a year. The EMIs will be not reduced, but the amount received will be adjusted against the principal outstanding. You can partly pay 20% and 25% of the principal outstanding if paying between 13 to 24 months or 25 to 36 months, and 37 to 48 months or 49 to 60 months, respectively.
- Other Charges: The bank will provide a statement of charges and fees after approving the loan. Apart from the rate of interest, there could be other circumstantial charges such as that for late payment, loan cancellation, cheque bounce, etc.
Factors that Influence Yes Bank Personal Loan Interest Rate
The bank checks your employment and financial details to decide the rate of interest. It will analyse your loan amount, financial liabilities, employment details, tenure, credit history, monthly income, and other factors which are mentioned below:
- Loan Amount: You can borrow between Rs. 1 lakh and Rs. 40 lakhs. You can get a lower interest for a higher borrowing amount, and vice-versa.
- Salary: The bank may offer better rates to those belonging to a higher salary bracket. Your monthly income and disposable income will give the lender an idea about your ability to afford the EMIs. A higher income may convince the lender that you will make timely payments.
- Loan Tenure: A shorter tenure reduces the interest payout, even if the EMIs are larger. A longer tenure will attract a greater interest outgo, but the EMIs will be smaller. The tenure offered by the bank is between 12 months and 60 months. You must choose the tenure as per your repayment ability.
- Repayment Capacity: Your CIBIL report and score will inform the bank about your payment track record. Higher the score, lower will be rate offered on the loan. The report will contain details about the credit card bill payments and EMIs paid, along with history of ongoing loans, dues, and defaults (if any). These details will enable the lender to understand your capacity to repay the loan on time.
- Employer Category: The bank will have an internal list of companies. These firms will carry a rating. The rating will be from high to low, based on the company’s size, reputation, and relationship with the lending institution. If you work for an organization with a higher rating, then you could be offered a lower rate of interest.
- Relationship with the Bank: Those who have an existing account with the bank or a proven track record of repayments, they can be offered best interest rates by the bank. If you are a loyal customer, then a pre-approved offer may be given at discounted fees.
Personal Loan Yes Bank Total Cost
|Annual Percentage Rate (APR)
|Total Cost: Principal + Interest + Fee
||Here is an illustration:
Principal Amount: Rs. 1 lakh
Tenure: 12 months to 60 months
Processing Fee: From Up to 2.50% of the loan amount + tax, subject to minimum Rs. 999
Fee to Loanbaba: No fee
Monthly Cost: For instance, the tenure for Rs. 1 lakh borrowing is 60 months and the rate is 10.99%. In this case, the EMI will be Rs. 2,174. Now, if the same loan amount is borrowed at 20.00% rate over 12 months, then the EMI will be Rs. 9,263
Total Interest Cost Over Tenure: For 60 months the cost payable is Rs. 30,455, while the same is Rs. 0.13 lakh for 12 months tenure
Yes Bank Personal Loan Interest Calculation
At 10.99% applied on Rs. 1 lakh loan amount, here are the interest and monthly instalment calculation for different tenures.
|For Rs. 1 lakh borrowing at 10.99%
|Principal + Interest = Total cost
|Total interest over the tenure
It is evident from the above example that the Equated Monthly Instalment is lower for a longer tenure, and vice-versa. But the interest outgo is higher for a longer tenure, and otherwise.
For instance, for Rs. 1 lakh loan at 10.99% over 60 months, the monthly instalment is Rs. 2,174. The total interest is Rs. 30,455.
On the other hand, for Rs. 1 lakh loan for 2 years, the EMI is Rs. 4,661, but the interest is lower at Rs. 11,859.
Thus, a shorter tenure will reduce the interest payout. But you must choose the tenure as per your ability to afford the instalments.
EMI Calculation for Personal Loan Yes Bank
EMI is equated monthly instalment that you have to pay to the bank every month as repayment. This is a fixed amount that you have to pay on the fixed date either through ECS, standing instruction, or any other method available. The lowest EMI is Rs. 2,174 for Rs. 1 lakh for 60 months at 10.99%. Below we have mentioned different loan amounts borrower over different tenures at lowest interest rate.
||5 Years loan
||3 Years loan
||1 Year Loan
|Rs. 1 Lakh
|Rs. 5 Lakh
|Rs. 10 Lakh
Here is another illustration for EMI calculation at 10.99% for different tenures and loan amounts:
|Rs. 3 Lakh
|Rs. 5 Lakh
|Rs. 10 Lakh
It is evident from the above illustration that different loan amounts over different tenures at the lowest interest rate will give rise to different EMI amounts.
The monthly instalment is smaller for a longer tenure and vice-versa. There is a change in component of interest and principal after paying each EMI.
As you keep paying the EMIs, the principal component increases and the interest proportion reduces.
Frequently Asked Questions about Yes Bank Personal Loan Interest Rate
Here are the personal loan Yes Bank FAQs:
CIBIL score or credit score indicates your ability to repay a loan. Your CIBIL report details the repayment record such as ongoing or past EMIs, loan default/delayed payment, credit card bill payment, etc. The closer your CIBIL score is to 900, the bank is keen to approve the loan and offer a lower interest rate, and vice-versa. To get a personal loan Yes Bank, you must have CIBIL score 750+.
The bank offers a low rate of interest starting from 10.99%. You can borrow as less as Rs. 1 lakh and up to Rs. 40 lakhs. The lowest EMI per Rs. 1 lakh is Rs. 2,174. The tenure is flexible between 12 months and 60 months. You can opt for a balance transfer or top-up loan as well. Besides these features, the bank has a great customer service and support system.
For Rs. 1 lakh amount over 60 months and lowest rate of interest, the EMI amount is Rs. 2,174. But a longer tenure will increase the interest payout. So, you can choose a shorter tenure, and reduce the interest payout. For instance, if you borrow the same amount for 2 years, the monthly cost will be Rs. 4,661.
You can either choose to foreclose or partly pay the due amount before end of tenure. By choosing part payment, you can lower the EMI amount and the interest payout thereby. You may entirely repay the due before the end of tenure as well. At Yes Bank, you can prepay part of the outstanding amount of preclose the loan after 12 EMIs.
You can borrow up to Rs. 40 lakhs and as less as Rs. 1 lakh from Yes Bank. The interest outgo depends on the loan amount you take. So, the higher the borrowing amount, there are chances the interest payment may also increase. But, tenure and rate of interest are also considered in total cost of the loan.
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