Base Rate of Yes Bank - 10.25 % to 12.25%
|Statement of Account Charges||Rs 750 per statement|
|Loan Tenure||Minimum Tenure - 1 year Maximum Tenure - 7 years|
|Part Prepayment||Not Permitted|
|Processing Charges||Amount up to Rs 10 lakhs - Rs 5000 From Rs 10.01 to Rs 25 lakhs - Rs 7500 More than Rs 25 lakhs - Rs 10000|
|Quantum of Loan||Up to 90% for select models Minimum of Rs 1 lakh and a Maximum of Rs 500 lakhs.|
|Stamp Duty||At Actual|
|Cheque Swapping Charges||Rs 750 per transaction|
|Foreclosure Charges||No Foreclosure is allowed within 6 months. For Foreclosures within 6 months to 24 months, 6% of the outstanding principal amount is charged. For Foreclosures after 24 months, 5% of the outstanding principal amount is charged.|
|Late Payment Charges||2% per month|
|Loan Cancellation and Rebooking Charges||Rs 1000|
|Cheque Bounce Charges||Rs 750 per incident|
|Issuance of NOC / Duplicate certificate||Rs 750 per issuance|
|Special NOC||Rs 750 per NOC|
As India’s fifth largest private sector bank, Yes Bank has a well-established country-wide presence. Headquartered in Mumbai, Yes Bank was founded by Rana Kapoor and currently is amongst the fastest growing banks in India. With a customer-centric approach, Yes Bank strives to deliver high quality products and services to all types of businesses in the country. Leveraging the latest technology available and also adopting international best practices, Yes Bank offers a plethora of banking solutions to its growing clientele. Yes Bank currently has a vast network of over 1150 ATMs and 630 branches in 375 cities in India. Yes Bank has won numerous prestigious awards and accolades for its varied businesses inclusive of Investment Banking, Transaction Banking, Treasury, etc.
Yes Bank offers a unique car loan scheme that can be availed by customers with the assurance of complete transparency and hassle-free processing. Car loans can be got at attractive interest rates for any make or model of a four-wheeler. The loan amount that can be availed by a customers is quite high, with Yes Bank providing financing to up to 90% on select car models. Customers can choose from an array of repayment options available from Yes Bank to pay back their car loans. The minimum loan amount that can be taken is Rs 11 lakhs and the maximum goes up to Rs 500 lakhs. Borrowers can choose any tenure ranging between 1 year and 7 years.
Salaried individuals, partnership firms, self-employed professionals and private limited companies are eligible to procure a Yes Bank car loan. The interest rate offered by Yes Bank is a fixed interest rate based in the prevailing base rate of the bank. The interest rate would be calculated as a total of the base rate plus a certain percentage. Depending on the tenure chosen and loan amount availed, Yes bank offers competitive interest rates with flexible repayment options.
A Yes Bank car loan can be conveniently repaid using equated monthly installments or EMIs by borrowers. An equated monthly installment is the total sum of the interest rate and the principal amount availed by a Yes Bank car loan customer. Individuals have to make the repayment within the selected time period called loan tenure and the EMI amount includes the interest rate charged by Yes Bank along with the principal amount. When the Yes Bank car loan tenure starts, borrowers have to pay a predetermined amount every month. Initially, the monthly installment will contain more interest rate amounts and a relatively small principal amount. After a certain time period, the interest rate amount starts reducing drastically, with more principal amount being added to the monthly installment.
The EMI for a Yes Bank car loan can be calculated as follows -
EMI (E) = [P x r x (1+r) ^n]/ [(1+r) ^n-1]
P = The Principal Loan Amount
R = The Interest rate charged per month. Yes Bank charges a fixed interest rate for all types of applicants. This is calculated depending on the base rate, which is currently 10.25%.
N = Number of monthly installments i.e. the number of years opted for the repayment of loan.
For a principal amount of Rs. 1, 00,000 given at an interest rate of 10.50%* and a loan tenure of one year, an estimate of the total sum of EMIs that has to be paid by the borrower is Rs. 1, 04, 861, out of which the interest amount will be around Rs. 4861.
The following table illustrates the total cost that will be incurred for a car loan amount of Rs. 4, 00,000 to be repaid in 60 months at an interest rate of 10.50%* from Yes Bank (Calculations based on EMIs paid in advance):
|Year||EMI Amount||Interest Amount||Principal Amount||Balance Due|
|2015||Rs. 25,569||Rs. 6,806||Rs. 18,763||Rs. 3,81,237|
|2016||Rs. 1,02,276||Rs. 36,945||Rs. 65,331||Rs. 3,15,907|
|2017||Rs. 1,02,276||Rs. 29,746||Rs. 72,530||Rs. 2,43,376|
|2018||Rs. 1,02,276||Rs. 21,752||Rs. 80,523||Rs. 1,62,853|
|2019||Rs. 1,02,276||Rs. 12,879||Rs. 89,397||Rs. 73,456|
|2020||Rs. 76,707||Rs. 3,251||Rs. 73,456||Rs. 0|
*Estimated Interest Rate Value
The total interest to be paid towards a Yes Bank Car Loan for an amount of Rs. 4, 00,000 would be Rs. 114379.
There are multiple factors affecting the interest rate given to borrowers by Yes Bank. Some of the common factors playing a key role have been explained below -
The income of an applicant plays an important part in determining the interest rate for a Yes Bank car loan. Financial institutions prefer customers with a lower debt to loan ratio. While making sanctions, banks will make sure that the applicant has the required annual income to pay back the car loan and also does not carry a lot of outstanding debts. The income eligibility criteria can be improved by adding a co-borrower with a reliable credit history, thereby helping the borrower get a low rate of interest.
Down payment - Individuals making lump sum down payments can always get the advantage of getting lower interest rates for their car loans. Lenders will have to approve only smaller loan amounts if the down payment amount is high, thereby reducing the risk factor for themselves. This assures the borrower of lowest interest rates from the institution. New car loan customers must always ensure that they are well prepared with regards to their financial aspects to pay a higher amount as down payment, in order to get attractive interest rates.
Debts - Individuals carrying a lot of debts and liabilities will face some hassles with regards to interest rates on their car loans. Banks consider the debt to income ratio to be a major factor when it comes to approving a car loan. Even to get an affordable interest rate, customers must make sure that they have lesser debts and the required income to repay the loan. If the lender notices a regular repayment pattern with efficient money management from an applicant, the bank will definitely offer the best interest rates possible, as per market conditions.
Loan Tenure - Borrowers opting for a longer loan tenure, will have to pay higher amounts as interest rate by the end of their loan term. Interest rates tend to change according to market fluctuations and based on that the EMI amounts might also go up or come down. It is always better to go for a shorter loan tenure and pay smaller interest rate amounts. Also banks might give comparatively better interest rates to individuals paying higher down payments, thereby shortening the loan tenure.
It is important for car loan customers to carry a good CIBIL score when they apply for a new loan. The lending institution will do a deep dive into the applicant’s credit history and repayment patterns, when they offer a car loan deal. Depending on the score held, the bank might offer a high or low interest rate. Individuals with low scores might get higher interest rates and vice versa. If the bank finds that an applicant has a steady income and is able to capably manage his debts and outstanding liabilities, then the applicant will be able to get a relatively low interest rate.
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