YES Bank

Table of Contents

• Key Features of Yes Bank Home Loan
• Eligibility Criteria for Yes Bank Home Loan
• Yes Bank Home Loan Types
• Yes Bank Home Loans for NRIs
• Yes Bank ‘Khushi’ Home Loan
• Yes Bank Home Loan Interest Rates and Charges
• Yes Bank Home Loan EMI Calculator
• How to Apply for Yes Bank Home Loan
• Document Checklist for Yes Bank Home Loan

Introduction

YES Bank, the fourth-largest private bank in India, offers various financial services to its customers. These include wide-ranging customised solutions to meet your home financing requirements. With YES Bank’s Home Loans, you can realise your dream of buying a house, without getting worried about financial constraints.

YES Bank’s Home Loan solutions are tailored to meet your home funding requirements. Whether the purpose is the purchase of plot and construction thereon, purchase of ready or under-construction flats, home renovation or improvement or balance transfer of existing loans, YES Bank provides flexible solutions to meet your financial requirements.

Building a home on a plot owned by you or renovating your existing home can help improve the value of your asset. These are activities that need financing and availing financial aid to enhance your home value can yield greater benefits in the long run.

YES Bank Home Loans provide wide-ranging solutions, to suit individual needs and help ease the stress involved in availing a home loan facility.

YES Bank provides its home loan schemes in tie-up with Dewan Housing Finance Limited (DHFL).

Key Features of Yes Bank Home Loan

• Home loans are offered to salaried, professionals or business people, as well as self-employed applicants.
• Home loans can be availed for various purposes, including the purchase of plot and construction thereon, purchase of ready or under-construction flats, home renovation or improvement or balance transfer of existing loans.
• A dedicated home loan executive to provide easy guidance and faster completion of loan-related processes.
• The bank also offers door-step banking facilities, on a need basis, to its applicants.
• The bank offers longer tenures (up to 35 years) to reduce the financial burden by keeping Equated Monthly Installments (EMIs) lower.

 

An applicant can either apply for a loan individually or jointly. Generally, a co-applicant is included to enhance the loan amount eligibility, subject to other criteria. However, all co-owners of the property must be the co-applicants on loan.

YES Bank provides attractive Interest rates on its home loans, ranging from 9.60% to 12.00% under its afford able housing suite YES KHUSHI Home loans, the interest rates range between10.25% to 13.00 %.

For those who are concerned about the monthly financial burden of the EMI, YES Bank Home Loans offer longer tenures and competitive interest rates to ease the repayment burden. Further, they provide a dedicated home loan executive and doorstep service, to ensure that the entire loan process is smooth, and applicants get counselling and guidance in the comfort of their own home.

The process of availing a home loan is easy, convenient and transparent. Owning your dream home is now just a click away.

Eligibility Criteria for Yes Bank Home Loan

YES Bank evaluates your loan application based on the following criteria:

Age limit : Between 21 to 60 years

Work experience (salaried) : Minimum 2 years

Business stability (self-employed) : Minimum 2 years

Loan amount eligibility: INR 10 lakhs to INR 5 crores.

Interest rate : 9.85% onwards.

 

Multiple factors are evaluated before your home loan is approved. Some keys factors are your age, net monthly income, co-applicants’ income (where applicable), your current obligations or debts, the current market value of the property and your CIBIL score.

Eligibility Based on Age

A home loan duration depends on the age of the applicant. At a younger age, the individual gets a longer tenure for repayment of loans. Hence, the interest burden is also spread across a longer horizon, and the EMI is lower. Hence, age is one of the key factors while applying for a Home loan. Like all other banks, YES Bank Home Loans have a defined minimum and maximum age for applicants.

To apply for a YES Bank Home Loan, the applicant’s minimum age should be 21 years, and the maximum age can be 60 years. The age thresholds are the same for salaried and self – employed applicants. In any case, the maximum tenure that the bank offers is 35 years for repayment of the home loan.

 

Eligibility Based on Income

The applicant’s net monthly income is one of the key factors to determine his / her home loan eligibility. Net monthly income is the salary credited to your salary account every month after statutory deductions like provident fund, gratuity and taxes. Your net income determines your repayment capacity.

For example, if the net monthly income of the applicant is INR 80,000 and he / she wants to purchase a property worth INR 90 lakhs and the interest rate is 8.90 % per annum, the maximum home loan amount that the applicant can avail of is INR 52,71,442 in 41 years. Alternatively, in the same case, if the net monthly income of the applicant is INR 1 lakh, then the maximum home loan amount that the applicant would be eligible for would be INR 76,87,520, other factors remaining constant.

It is quite clear from the above example that applicant with higher net monthly income is eligible for a higher home loan amount and vice-versa. If the applicant’s requirement is not met, he or she can add a co-applicant for the home loan application. In this case, the net income of both the applicants can be clubbed to increase your repayment capacity and make you eligible for a higher loan amount.

 

Eligibility Based on Value of Property

Like most Indian financial institutions, the funding provided by YES Bank Home Loan schemes is capped at a certain percentage of the total property value. This is called the Loan to Value Ratio (LTV), and it is 90% for YES Bank for loans up to INR 30 lakhs, 80% if the property value is between INR 30 lakhs and INR 75 lakhs and 75 % if the property value is greater than INR 75 lakhs. The balance amount towards the cost of the house is known as the applicants ‘contribution’.

 

Eligibility Based on CIBIL Score

The CIBIL score, also known as credit or bureau score is the indicator of an applicant’s credit history and standing. It is one of the key factors which help determine applicant’s home loan eligibility. The credit score depicts the overall credit history of the applicant, based on his past financial transactions and repayment trends. A high score will increase home loan eligibility and vice-versa.

 

Eligibility Based on Monthly Fixed Obligations

In case the applicant is already servicing any existing loans or has an outstanding balance on his credit card account that will be factored in while calculating the applicant’s home loan eligibility. Existing fixed obligations will lower the disposable income of the applicant, thus, lowering his home loan eligibility.

 

Eligibility Based on Number of Dependents

Apart from the fixed monthly obligations, the number of dependents for the applicant, also impact his/her disposable income and thus the home loan eligibility. More number of dependents will reduce the loan eligibility, as YES Bank will also consider your monthly outgo in providing for them and vice-versa.

 

Eligibility Based on Co-applicants’ Income

To increase your loan eligibility and get a higher loan amount, you may wish to add a co-applicant to your loan application. The factors which will be considered, while admitting a co-applicant are the co-applicant’s monthly income, employment stability and monthly obligations if any. You may include your spouse as a co-applicant to the loan. However, please note that all co-owners of the property must be mandatorily included as co-applicants to the loan application.

 

Eligibility Based on Property Documents

Property documents are the legal documents related to the house for which you are availing a loan. YES Bank’s legal team will review all the property documents and once found satisfactory, clear them. Post legal clearance only, your loan application will be processed further.

Yes Bank Home Loan Types

Customers avail of finance for various purposes. It could be for buying a new house, renovation of an existing house or for availing a more competitive interest rate. In each case, the need is specific to each applicant, and the terms of finance will vary accordingly.

For example, for someone undertaking the renovation of his / her house, the loan amount required may not be very high and, in all likelihood, the tenure expected will also be less. On the other hand, someone who is looking to buy a new house, the requirement for funding and tenure of the loan both will be more.

Keeping in mind the diverse requirements of the customers, YES Bank provides different types of home loan solutions based on the needs of the applicants. These offerings are tailored to suit the requirements of the customers.

 

Types of Home Loans Being Offered by YES Bank:

YES Bank Home Loans	Purpose
Purchase Loan	To purchase a new property or house
Improvement Loan	For repair and renovation of an existing house
Top-up Loan	For the need of additional funds to the home loan interest rate
Transfer of Home Loan	Balance transfer from other financial institutions
Home Loans for the Self – Employed	Tailored home loan for self-employed

Yes Bank Home Loans for NRIs

Non-Residential Indians (NRI) or Persons of Indian Origin (PIO) are keen on investing in properties in India. The demand is fueled by the burgeoning Indian real estate market and the value they see in investing their funds here.As a new-age private bank, YES Bank has deployed a team of experts who develop customised financial solutions to service this lucrative segment of customers; YES Bank provides home loan solutions to NRIs and PIOs under its Global Indian Banking Program. This program offers customised financial products to cater to specific banking and investments needs of the Global Indian Diaspora.

 

Who is an NRI?

According to the Income Tax Act, an individual is a resident of India (for taxation purpose) if:

• He / she has lived in India for at least 182 days during the year.

Or

• He / she has lived in India for at least 60 days of a year, in the previous year, and at least 365 days in the preceding four years.

Individuals who do not satisfy either of these two conditions are deemed as Non-Residential Indian (NRI) for taxation purpose.

 

Income Tax on NRIs

• Salary received for services provided in India (Global Income).
• Capital gains earned on the transfer of assets located in India.
• Rental income from property owned in India.
• Revenue from Fixed Deposits.
• Interest on Bank Savings Accounts.

 

A Non-Resident Indian is also eligible for tax benefits under Income tax rules, about repayment of principal and interest component of the home loans availed in India. But this is relevant to NRI clients who have some income earned or accrued in India, which is subject to taxation.

 

Home Loan Tax Benefits for NRIs

• Under Section 80 C: Deduction towards repayment of the principal. Maximum deduction allowed is INR 1,50,000 per annum. Further deduction on registration charges and stamp duty for purchasing the property can also be claimed.
• Under Section 24: Deduction towards repayment of interest. Maximum deduction allowed is INR 2,00,000 per annum. This deduction is allowed even if the property is in the pre-construction phase.
• Under Section 80EE: Additional deduction of INR 50,000 towards repayment of interest on the home loan per annum for buying a first home (subject to certain conditions).

 

NRI Home Loan Eligibility

• The schemes are only available to salaried applicants and merchant navy employees, including those earning salary in cash.
• In case of purchase of flats, an applicant can avail a loan up to 80% of the value of the property. For purchase of plots, the loan value is restricted to 75% of the value of the property.

Yes Bank ‘Khushi’ Home Loan

YES Bank provides affordable housing loans under this scheme. This scheme was launched to meet the home financing needs of a common man who may not be able to produce formal / standard income documents. The salient features of this scheme are as under: (* Product offering designed to meet home loan requirement of the economically weaker section (EWS) and low-income group (LIG).)

• The maximum loan amount is INR 50 lakhs in metro cities (Mumbai, Delhi, Bangalore, Chennai, Hyderabad and Kolkata) and INR 40 lakhs in non-metro locations subject to property value not exceeding INR 65 lakhs and INR 50 lakhs, respectively.
• Surrogate income programmes for applicants with formal, semi-formal and informal income documents.
• There is no restriction on job profile or industry.
• Loans start from minimum INR 1 lakh for applicants from EWS/LIG who want to construct their own house.
• Loans can be extended for 35 years.
• There are no minimum income norms. Loans are extended to individuals with a family income starting INR 9,000 per month.

Yes Bank Home Loan Interest Rates and Charges

Required work experience	Minimum of 2 years
Age requirements	21-60 years of age
Loan tenure	Up to35 years
Loan amount	Up to 5 crores*
Interest rates	9.85% onwards
Processing fee	INR 15,000  or 2 % of loan amount + additional GST
Prepayment fees	NA for floating-rate loans, For fixed-rate loans, 2.5% on the principal outstanding
Late payment fees	24% per annum
Nationality the loan applies to	Indians

 

Fees Applicable

YES Bank levies various charges on home loans. The charges levied is as under:

Loan processing charges: These are charged as per rate matrix applicable at the time of applying for the home loan. The processing charge is up to 2% of loan amount or INR 15000, whichever is higher (GST additional).

Prepayment fees: The bank offers pre-payment where, the applicant is free to close the loan before the tenor ends. The bank does not charge any foreclosure fee on loan issued in floating rate. But the minimal amount should be equal to at least 1 EMI’s value. For fixed-rate loans, the prepayment charges are 2.5% on the principal outstanding.

Stamp duty: Stamp duty charges are colleted according to the law of the respective state.

Late payment penal charges: The borrower must see to that the payments towards EMI’s are paid on time. If the borrower fails to pay the EMI on time, the bank will charge a penalty interest of 2% each month on amount due.

Cheque swap charges:  For every swap of the cheque, INR 500 is charged by the bank.

Charges for cheque return: INR750 is charged as penalty per cheque dishonour.

Amortization schedule charges: The bank offers an amortised record of the applicant’s loan account. This schedule contains details of the loan account of the applicant. The charges are INR 500 for each amortisation schedule.

Account statement charges: INR 100 is charged for each account statement.

Prepayment statement charges: Prepayment statement charge is INR 100.

Duplicate NOC issuance charges: On the demand of a customer, the bank makes sure to issue NOC certificate. INR 100 is charged for each duplicate copy issued.

Loan cancellation and rebooking charges: Applicant has the option to cancel the loan before the disbursement. Charges are INR 2,000, applicable from starting date of the loan disbursement until the request date for cancellation.

Incidental, repossession and legal charges: This type of charges are made as per the situation.

Document retrieval charges: Charges are INR 500 for document retrieval.

Switch fees: The charged to change from a floating interest rate to a fixed interest is  0.5% over the principal loan amount outstanding. To switch from a fixed rate of interest type loan to floating rate, it is 1% on the outstanding principal. In both cases, the approval to switch is subject to the bank’s discretion.

Conversion charges (floating interest rate): The charge is 0.5% on the loan amount outstanding.

Conversion charges (fixed rate of interest): The charge is 1% on the outstanding principal loan amount.

EMI cycle change: The charges made  to change the prevailing EMI date to a suitable EMI date is INR 500.

Creation charge with an ROC: This charge is made on a realistic basis as per the situation.

Valuation / legal charges: This charge is levied on as per the need.

All the above charges are excluding the applicable statutory charges.

Home Loan Documentation

• Application with a photograph.
• Aadhar card (non-mandatory for NRIs).
• Know Your Customer (KYC):
  • Address proof
  • Identity proof
  • Signature proof
• Form 60 / Pan Card
• Income proof :
  • For a salaried applicant: Form 16 Income Tax Returns for last 2 years and last two salary slips.
  • For self-employed: Income Tax Returns of the past 2 years with a calculation of income, profit and loss account, audited balance sheet, tax audit report and proof of turnover like as latest service tax returns or sales receipts.
  • Self-employed businessmen or retail SME enterprises: Last 2 years Income Tax Returns with calculation of income, audited balance sheet and tax audit report if applicable, profit and loss account and proofs of turnovers such as latest service tax returns or sales receipts.
• Proof of qualification: Qualification proof is required only for self-employed individuals.
• Bank statements for the latest six months:
  • For salaried, of account where salary is credited.
  • For self-employed, the main operative account.
• Details of existing loans, if any.
• Partnership deed, if the applicant is a partnership firm.
• Additional documents for a public ltd. or private company: List of shareholders and directors, Memorandum of Association (MoA) and Articles of Association (AoA).
• Copies of property documents.

Yes Bank Home Loan EMI Calculator

Home loans bridge the funding gap between the buyer’s contribution and the cost of the property. It enables customers to fulfil their long-cherished dream of owning a house. Hence, home loans have proven to be a boon for all concerned; the customer, as he / she is getting the necessary funding to purchase the dream house, the financial institution, as they are lending against a secured asset and the seller, as the demand for his goods (flats) has gone up and that helps the economic activity.

With a choice of repayment options available to the customer today, the number of people opting for a home loan has increased. One of the most preferred options is the EMI (equated monthly instalments), which has proven to be the most efficient method of repayment of loan availed for buying a house.

 

Let’s understand what an EMI is.

A lender charges interest to the borrower towards:

• Making the funds available to the borrower when needed.
• Risk taken towards the repayment of the loan.

Equated monthly instalment, more commonly referred to as EMI, is a fixed amount of money which a borrower must pay to their lender as instalments every month, on a specified date. Equated monthly instalments are used to repay both interest and principal every month, such that over the tenure of the loan, the entire loan is paid off in full. The principal is the base amount which the borrower has taken as a loan, and interest component is the percentage of principal amount which the borrower is required to pay over and above the loan amount.

YES Bank’s Home loan calculator helps in arriving at the exact instalment amount that the applicant needs to pay, depending on various factors, like loan amount, tenure, interest rate, etc. The Yes Bank’s EMI calculator is an easy to use tool that helps the borrower plan his finances to make the application process hassle free. It becomes easy to forecast a monthly budget, by factoring the exact amount the applicant will have to put aside every month, towards the repayment of the borrowed money.

You need to input your principal or loan requirement amount, the applicable interest rate, processing fee and tenure (in months). The ‘tool’ will calculate the final amount payable and to assist you in understanding the financial break-up, also provides an ‘amortisation table’.  This table provides the break-up of interest and principal being repaid in each EMI, for the entire duration or tenure of the loan.

How to Apply for Yes Bank Home Loan

The most important investment you make is the investment done in your house. It is an important milestone in every individual’s life and brings with it a sense of satisfaction and a deep sense of security. The first house that you purchase is always a very special feeling. To help achieve this dream, home loans lend a helping hand.

The process of availing a home loan may seem tedious and complicated for many. Most people are also unaware of where to start from and what are the various requirements in terms of documents and identity or income proofs etc.

YES bank’s loan application process is very convenient, smooth and easy to understand.

If you are now eager to find out how to go about applying for a housing loan from YES Bank, continue reading.

 

Check Your Eligibility

A bank evaluates many factors, before sanctioning you a loan. To understand your profile and eligibility, a bank will look at the following criteria:

• Age
• Net income.
• Credit or repayment history
• Fixed monthly obligations
• Number of dependents
• Co-applicants income, if applicable.

YES Bank provides a simple-to-use home loan eligibility calculator, which will do an initial assessment of your profile, based on some basic criteria, to calculate your loan eligibility.

 

Apply For The Loan

Customers can apply for a home loan from YES Bank by visiting the nearest branch. There is also the convenient option of applying online on the bank’s website.The bank also provides a toll-free number where you can call and get more information on how to apply for a home loan. There is also the option to fill out an online form, with basic details, and YES Bank will arrange an instant call back to the customer to answer any queries.

While visiting the branch, please ensure that you have all the necessary documents and copies with you, to ensure that the process is smooth and hassle-free. The bank officials will review your documents and guide you through each step of the process in detail.

Document Checklist for Yes Bank Home Loan

Once you have confirmed your eligibility and arranged for all the necessary documents, you are just steps away from applying for a home loan.Visit the branch, fill out the application forms and submit the same, along with documents to set the ball rolling on your home loan application.

List of Common Documents Needed for a Home Loan

Proof of Identity and Signature:

• PAN Card
• Aadhaar Card
• Passport

 

Proof of Address (Residence – For Salaried):

• Passport
• Latest utility bills
• Ration card

 

Proof of Address (Office – For Self-employed):

• Latest utility bills
• Ration card

 

Income Documents (For Salaried):

• Last 3 months’ salary slips
• Last 6 months’ bank statements of the salary account
• Last two years’ Income Tax Returns or Form 16

 

Income Documents (For Self-employed):

• Last 2 years’ Income Tax Returns with audited balance sheet and if applicable, a profit and loss account.
• Tax report of audited balance sheet and profit and loss account
• Turnover proof 

 

Business-related Documents (For Partnership Firms):

• Partnership deed

 

Business-related Documents (For Private or Public Limited Company)

• Memorandum of Association
• Articles of Association
• List of directors and shareholders

 

Property Documents:

• Copies of all property documents

At the time of visiting the branch with the above set of documents, remember to carry the original documents as well as a set of photocopies of the same. This will ensure that the loan officer can verify all your documents against the originals and the process of verification is smoother and faster.

This completes the documentation for your home loan application.