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Introduction

Yes bank is a private sector bank in India and has its headquarters in Mumbai. Due to its financial crisis in the 2020, the RBI had taken over the control of the bank and was later restructured following which SBI the largest bank in our country owns 30% stake in Yes Bank. This restructure has resulted in redefining the various products and services of the bank and improving them wherever necessary for the benefit of the customers of the bank.

Among its many such products, the car loans of the bank are quite popular in the market providing up to 100% of the value of the car as finance at attractive rates.

The details of the car loans of the bank are mentioned below.

Particulars

Details

Maximum Amount of Loan

Minimum - Rs. 1,00,000

Maximum - Rs. 5,00,00,000

Rate of Interest

Minimum – 9.80%

Maximum – 12.40%

Tenure

Minimum – 1 year

Maximum – 7 years

Primary Security

Hypothecation of the vehicle to be purchased out of loan 

Guarantee

Based on discretion of Bank

Processing Charges

For New Cars

  • 1% of loan amount

For Used Cars

  • 2% of loan amount

Margin

10% of the value of car in select models 

Prepayment Charges

  • Not allowed till completion of 6 months
  • From 07 months to 12 months (from 1st EMI) - 6% of outstanding
  • From 13 months to 24 months (from 1st EMI) - 5% of outstanding
  • Post 24 months (from 1st EMI) - 3% of outstanding

Part Payment Charges

  • Not allowed till completion of 12 months 
  • From 13-24 months (from 01st EMI) - 5% on the part prepayment amount
  • post 24 months (from 1st EMI) - 3% on the part prepayment amount

What are the factors that influence the interest rates on car loans?

Yes Bank Car Loan Interest Rates

There are many factors that influence the interest rates on car loans. Some of such factors are external to the loan product and some intrinsic. Some examples of such factors are mentioned below.

  • Type of interest rate levied whether fixed rate or floating rate as floating rates are generally lower than fixed rates on loan products
  • Loan amount required by the borrower which can be reduced by paying higher margin money which will result in lower need for car finance and thereby lower rate of interest.
  • Inflation in the country can influence the interest rates especially floating rates which are directly proportional to such inflation rate.
  • If repayment period of the vehicle is lesser and the loan amount is higher, then it will require the borrower to pay higher monthly installments which can be deemed as a higher risk so interest rates will accordingly be higher. In case of higher tenure and lower amount of loan, the risk is considered to be less so rate puff interest will be less.
  • Type of vehicle to be purchased out of loan as interest rates on used car loans is generally higher than that on new car loans.
  • Demand for vehicles in the market
  • Category of the borrower whether an individual or a non-individual as c=some lenders provide loans at higher rates in case of non-individual borrowers
  • Credit history of the applicant is thoroughly reviewed to determine the applicable rate of interest. A person with a good credit history and higher credit score will benefit from lower interest rate and vice versa.
  • Repayment capacity of the applicant is also factored in to calculate the applicable rate. A good repaying capacity will not only ensure eligibility for loan but lower interest rate as well.
  • Relationship of the applicant with the lender is also considered as a person having an account with the lender can get the benefit of reduced rate of interest.

Closer Look at the Salient Highlights of Car Loans from Yes Bank

These features mentioned above are explained in depth hereunder.

Quantum of Loan

Yes Bank provides car loans to the extent of up to 100% of the value of the vehicle in case of certain specified models. In other cases, the bank provides up to 90% of the value of the car as loan. The maximum and minimum amount of loan that can be provided by the bank for new cars or used cars is tabled below.

Range

Amount of Loan

Minimum Loan amount

Rs. 1,00,000

Maximum Loan amount

Rs. 5,00,00,000

Rate of Interest

Yes Bank Car Loans are very competitive among many lenders in the market and are dependent on the credit profile of the applicant as well as the loan amount and the tenure of the loan. The applicable rates levied by the Bank for its Car loans are tabled below.

Range

Rate of Interest (Floating rates)

Minimum Rate

9.80%

Maximum Rate

12.40%

The details of the current applicable rate of interest based on the type of vehicle can be available by contacting the bank through its nearest branch or through the customer care service of the bank.

Tenure

The repayment period of car loan of Yes Bank is very comfortable and provides the applicant with flexible repayment options depending on the agreement between the borrower and the lender. The maximum period of repayment or tenure of Yes Bank Car Loans is 7 years (84 monthly EMIs) with the minimum tenure being 1 year or (12 monthly EMIs).

Margin

Margin money is to be paid by a borrower for Yes Bank Car Loan in case of selected models where the bank provides up to 90% of the finance on such vehicles. It is considered as a part of the loan application process. In certain cases, the finance provided by the bank is the full value of the car. In such cases, the margin money is not required to be paid by the borrower.

Security

The primary security of the loan provided by the bank is the vehicle purchased out of loan. Bank has the hypothecation charge on the vehicle which has to be duly registered with the Regional Transport Authority and recorded in the RC book.  A duplicate copy of the RC book and Keys have to be kept in record with the Bank.

Yes Bank may require additional guarantee in case of loan provided to certain class of borrowers which may be at the discretion of the bank and on a case to case basis.

Processing fees

The Bank levies processing fees on all the loans processed. This charge is a nominal charge and levied at the time of sanction of the loan. The applicable processing charges are 1% of the loan amount in case of new cars and 2% of the loan amount in case of used cars. These charges are subject to minimum and maximum charges as per the guidelines of the bank which are tabled below.

Charge

New Cars

Used Cars

Minimum 

Rs. 3,000

Rs. 10,000

Maximum 

Rs. 3,000

Rs. 7,500

Part payment charges

The part payment of the loan is allowed subject to certain conditions and is also subject to nominal charges levied by the bank depending on the period in which such part payment is made. The bank does not allow any part payment of the loan before the completion of 12 months from the date of payment of 1st EMI. Moreover, the borrower is allowed to make such part payment only twice during the tenure of the loan subject to 1 payment only in any year. The charges for such part payment are tabled below.

Range

Rate of Interest (Floating rates)

From 13-24 months (from 01st EMI)

5% on the part prepayment amount

post 24 months (from 1st EMI)

3% on the part prepayment amount

Foreclosure Charges

Yes bank permits foreclosure of loan after completion of 6 months from the date of payment of 1st EMI. This foreclosure is subject to certain charges that are levied as a percentage of the outstanding amount. The details of charges levied on foreclosure of loan is tabled below

Range

Rate of Interest (Floating rates)

From 7-12 months (from 01st EMI)

6% of outstanding amount

From 13-24 months (from 01st EMI)

5% of outstanding amount

Post 24 months (from 1st EMI)

3% of outstanding amount

FAQs – Yes Bank – Car loan Interest rates

1. Who are the eligible persons for car loans of Yes Bank?

The eligible persons for car loans of Yes bank are individuals and non-individuals. Some of them are listed below.

  • Individuals
  • Proprietorship Firms
  • Partnership Firms
  • Public/Pvt. Limited Companies

2. What is the minimum amount of loan available under Yes Bank Car Loan?

The minimum amount of loan as per Yes Bank car loan is Rs. 1,00,000.

3. What are the other criteria for eligibility for Yes Bank Car Loan?

The other criteria of eligibility for Yes Bank Car Loan are,

Conditions 

Salaried Persons

Self-employed Persons

Age

21-58 years

21-58 years

Minimum Income

Annual income of minimum Rs. 3,00,000

Annual income of minimum Rs. 2,00,000

Employment/Business Existence

Minimum work experience of 2 years with one year with the existing employer

Been in the business for minimum period of 2 years

4. What are the documents needed for Yes Bank Car Loan?

Documents needed for Yes bank car loan are,

  • Completed application form 
  • Two latest passport size photographs of the applicant
  • KYC documents as per YES BANK’s policy namely,
    • ID proof
    • Address proof
    • Income proofs in the form of bank statements/ ITR/ Salary Slips

5. When does the bank permit foreclosure of loan?

Yes Bank permits foreclosure of loan after completion of 6 months from the payment of first EMI.

6. When does the bank permit part payment of loan?

Yes Bank permits part payment of loan after completion of 12 months from the payment of first EMI. Such part payment can be made twice during the tenure of loan and only once during any year.

7. Does the bank have multiple repayment options for car loans?

Yes. The bank provides the borrowers with multiple repayment options according to their flexibility and agreement between both the parties.

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