Yes Bank Loan Against Property - How to Apply for Yes Bank Loan Against Property

The Yes Bank is one of the predominant private sector banks in India and has marked its presence throughout the country. Yes Bank has introduced a loan against property to help its customers fulfil their dreams.

Features

• Loan amounts of up to 5 crores
• Flexible repayment options
• Attractive interest rates
• Quick processing
• Minimal documentation
  

Yes Bank Loan Against Property Schemes

The bank offers various loan against property schemes:

• Loan against residential property (term loan)
• Dropline Overdraft (DOD) facility: A unique overdraft facility financed against collateral, which gives the leverage of repaying the particular amount that the customer uses.
• Loan against property for the purchase of commercial property.
• Loan against rent receivables: The loan is borrowed against monthly rentals received by a customer from leased-out properties.
  

Eligibility Criteria

Eligibility for the loan depends on various factors:

• Age: The minimum permissible age for salaried and self-employed applicants is 21 years to apply for a loan against property. Any person availing a loan at the age of 25, can get it for a tenure of 15 years or more, thus reducing the servicing burden on his/her existing income.
  
  
• Income: Property loan is predominantly borrowed by self-employed individuals to meet their business requirements. However, to increase the loan amount, one can also club the income of family members such as spouse, parents, children, and siblings by registering them as co-applicants.
  
  
• Business Stability: The self-employed applicant should have been in business for a minimum of 3 years, and the company should have made profits during that period. The bank will also require ITR of 2 years to consider you eligible for the loan.
  
  
• Credit Score: A feeble credit history and poor repayment record of existing loans and credit cards may hurt your loan eligibility. The bank grants loans to borrowers with a credit score of 700 and above.
  
  
• Loan Amount: Yes Bank sanctions an amount ranging from ? 10 Lakh to ? 5 Cr, based on the property’s value. It is advisable to apply for a loan amount that you can comfortably repay.
  
  
• Property Value: The value of the collateral property is used to calculate the permissible LTV (Loan to Value) ratio, which can range up to 70%, depending on the type of property. The bank employs a detailed property assessment process to verify that it adheres to legal regulations, also assessing its market value and saleability.
  
  
• Fixed Obligations to Income Ratio (FOIR): Yes Bank also calculates the proportion of fixed obligations to your income. Fixed obligations include average monthly expenses and EMIs that you are paying on other existing loans. Minimum FOIR to be eligible for a Yes Bank Loan Against Property is 0.45.

How to Apply for Yes Bank Loan Against Property

You can apply for a property loan from Yes Bank by contacting the bank directly or by visiting the bank’s official website. Approaching the bank online improves the chances of getting better loan rates, low processing fees, and exclusive discounts in the form of cash backs. Once you visit the bank, the bank executive will collect your documents and initiate the loan process, which includes:

• Checking your credit score
• Property valuation
• Technical and legal checks on the property
• Eligibility calculation