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Car Loan

About the Bank
 

Yes Bank is India’s fifth largest private sector Bank providing banking and financial services across all 29 states and 7 Union Territories of India. The Bank is headquartered at Mumbai and has over 630 branches across 375 cities with 2000 ATMs pan India.


A result of the professional commitment of its founder, Mr. Rana Kapoor, and the management, Yes Bank has succeeded in establishing itself as a high in quality, service driven, and customer centric private Indian Bank that prides itself on catering to all the present and future businesses in India. Yes Bank offers the highest possible level of quality in their services as well as operational excellence in their comprehensive range of financial and banking solutions to all their customers. The constant endeavors of Yes Bank have led to it being recognized as one of the Top and Fastest Growing Banks in a number of banking League Tables. Yes Bank has also received several international and national honors for its impeccable services, including, Transaction Banking, Treasury, Corporate Investment Banking, and other sustainable practices by using the principles of responsible banking.


When it comes to the best car loans in India, Yes Bank definitely makes it to the list. Car loans provided by Yes Bank has emerged as one of the preferred choices amongst the people looking to buy new or old cars. ‘Say YES to your BIG car dreams’, the slogan for car loans offered by Yes Bank itself speaks tons for the bank’s popularity. Yes Bank’s core value lies in comprehensive car loan disbursals that perfectly match the taste and choice of the customers in buying the cars of their dreams. Yes Bank strives to provide an overall loan application and disbursal process that is completely hassle free and transparent. A car loan provided by Yes Bank comes with a number of benefits for the borrower. Availing car loan from Yes Bank, entitles an applicant to avail attractive rates of interests, flexible repayment options, as well as tenure for a car loan that can range from 1 to 7 years. Servicing a wide segment of the Indian population, Yes Bank assures loan amount up to 90 % of the car value, as well as a speedy processing of the car loan application and documentation. The minimum and maximum loan coverage provided by Yes Bank ranges from Rs. 1 lakh to Rs. 500 lakh. The number of advantages and features of Yes Bank car loan make it an ideal option for borrowers.


Features of the Car Loan


The Yes Bank car loans come with a host of customer friendly features that ensure that the borrower can avail the best deals on car loans. The Yes Bank car loan details has the followingmust-know features for people applying for the car loan:
 

  • Yes Bank Car Loans are available to Individuals, Proprietorship Firms, Partnership Firms, Public / Private Limited Companies
  • LTV of up to 90% on select models
  • Attractive interest rates
  • Minimum loan amount is Rs. 1 Lac and maximum is Rs. 500 Lacs
  • Loan tenure ranges from 1 to 7 years
  • Multiple repayment options
  • Yes Bank car loans require applicant for the car loan to submit collateral or security with the bank. It is against this security that the Yes Bank car loan is provided. When buying a new car, the security that has to be submitted is the hypothecation of the vehicle bought using the Yes Bank car loan to the bank.
  • A small amount is charged as the processing fee for Yes Bank car loan. The processing fee varies with the total loan amount that is applied for.
  • If a borrower wishes to prepay (partially or fully) their Yes Bank car loan, a small amount is charged as foreclosure charges. This amount is generally calculated at 5 % – 6 % of the outstanding principal amount.

Eligibility for Yes Bank car loan

There are a number of factors that define whether an applicant is considered eligible for a Yes Bank car loan. These factors and requirements for Yes Bank car loan differ for the various target groups. These target groups are listed below:


Employment types:
 

The individuals who can avail a Yes Bank car loan include:
 

  • Salaried or self-employed professionals
  • Public or Private companies
  • Partnership firms

The eligibility for Yes Bank car loan for the various target groups are listed as follows, according to their employment.


Yes Bank Car Loan Eligibility for Salaried Individuals
 

  • Age of the applicant must be minimum 21 years at the time of loan application
  • The applicant should be no more than 58 years at the time of loan maturity
  • Minimum Annual Income of the applicant must be at least Rs. 3 Lacs
  • The work experience of the applicant should be of minimum 2 years with at least 1 year  of working in the current job

Yes Bank Car Loan Eligibility for Self Employed Individuals
 

  • Age of the applicant must be minimum 21 years at the time of loan application
  • The age of the applicant should not exceed 65 years at the time of loan maturity
  • The applicant’s minimum annual income must be a minimum of Rs. 2 Lacs
  • The applicant must have a work experience of minimum 2 years in the same business

Yes Bank Car Loan Eligibility for Partnership Firms
 

  • The minimum annual income of the applying firm must be a minimum of Rs. 2 Lacs
  • The firm should have spent a minimum of 2 years in working with the same business field

Yes Bank Car Loan Eligibility for Pvt. Ltd. Co. / Ltd. Co.
 

  • The minimum annual income of the applying firm must be a minimum of Rs. 2 Lacs
  • The firm should have spent a minimum of 2 years in working in the same business field

Factors that can affect the eligibility for a Yes Bank car loan
 

The eligibility of an applicant for a Yes Bank car loan is affected by a number of factors. These factors can both affect the aspiring borrower’s eligibility positively, as well as negatively. These factors include:
 

  • The applicable monthly car loan payments, or the Yes Bank car loan EMI, should be less than 50% of the applicant’s gross monthly salary. This is due to the fact that the applicant’s income affects their repayment capabilities, thereby affecting their risk factor.
  • The car finance plans from Yes Bank are capped at 90 % of the car’s ex-showroom price
  • Eligibility for a car loan from Yes Bank is also affected by the amount of the applicant’s existing EMI responsibilities, as existing EMIs work to reduce the applicant’s income, which in turn affect their repayment capabilities.
  • The CIBIL score of an applicant is not an as important factor as it is in unsecured loans as a car loan from Yes Bank requires a security for the loan, but a clean credit history and a good CIBIL score only helps increase an applicant’s eligibility.
  • Other factors that can help an applicant increase their car loan amount eligibility for Yes Bank car loans include clubbing the income of immediate family members (like a spouse or parents) as co-applicants, or opting for longer repayment tenures.

Check your Car Loan Eligibility
 

To find out in detail about the eligibility criteria applicable for a car loan, you can easily use the Yes Bank car loan eligibility calculator, available at PaisaBazaar before you apply for a car loan online. It is always a good idea for the applicant to check their own eligibility before they apply for a yes bank car loan online. This helps the applicant reduce their chances for rejection of their application. Another fact is that the factors that affect the eligibility of the applicant can also affect the total loan amount that they are eligible for, as well as the Yes Bank car loan interest rate that they are offered. Pre checking your eligibility can help you improve your application before you apply for a Yes Bank car loan online.


Verify your eligibility for a car loan by Checking Your Car Loan Eligibility at PaisaBazaar.


Remember:
 

When one chooses car finance plans, they should of course consider all the factors that are involved in the process. There are a number of factors that are involved in the entire car loan application process that need to be kept in mind to ensure that you make a well informed and beneficial decision. These factors include considering the following:
 

  • Prepayment Charges
  • Interest Rate
  • Processing Fees
  • Tenure
  • Down Payment
  • Car loan EMI

Applicable Car Loan Interest Rates

The Yes Bank Car Loan interest rate, based on various eligibility criteria, varies from 10.25% to 12.25%.
 

Other charges that you should be aware of at the time of applying for the Yes Bank car loan are listed as follows:
 

Description

Fees

Processing fee for Yes Bank car loan

Up to Rs. 10 Lakh – Rs. 5000

Rs. 10.01 Lakh to 25 Lakh – Rs. 7500

More than Rs. 25 Lakh – Rs. 10000

Stamp Duty

At actual

Prepayment

Part prepayment is not allowed

Foreclosure

Not allowed within 6 months within the disbursement of the loan

6 months to 24 months from the 1st EMI – 6 % of POS

Post 24 months from the 1st EMI – 5 % of POS

Late Payment Penalty

2% per month

Cheque Bounce Charges

Rs 750 per bounced cheque

Cheque Swapping Charges

Rs. 750 per transaction

Cancellation or Rebooking Charges

Rs. 1000

Duplicate Repayment Schedule

Rs 750 per schedule

Statement of Account

Rs. 750 per statement

Legal, Repossession & Incidental charges

At actual

Duplicate no due certificate or NOC

Rs. 750 per certificate

Loan Rescheduling charges

As applicable

Special NOC

Rs. 500 per certificate

Documentation- Income Proofs

The car loan amount eligibility for the applicants, based on their income will require the following documents to be submitted:


For Salaried Individuals:
 

  • 3 months’ salary slips, or
  • Form 16

Self Employed Individuals:
 

  • Income Tax Returns for the last 2 years, or
  • The Income Tax Return for the previous year, as well as an advance tax challan for the current year that shows higher tax paid as compared to the previous year

Partnership Firms:
 

  • Audited financials for the last 2 years, or
  • The Income Tax Returns for the last 2 years, if the audited financials not available

Private Limited Company / Ltd. Co.
 

  • Audited financials for the last 2 years, or
  • The Income Tax Returns for the last 2 years, if the audited financials not available

Documents for Yes Bank car loan
 

Before a bank can disburse car loans, there are a number of documents that are required to be submitted before the approval of the loan. These include:
 

  • Yes Bank car loan application form, duly filled and signed
  • Latest photograph of the applicant
  • KYC Documents of the applicant
  • Income roof
  • Bank statement
  • Verification proof for the applicant’s significance
  • Performa invoice for the car to be purchased

Documents to be submitted after approval of the Yes Bank car loan
 

  • Duly signed loan agreement with the RTO set
  • Post Dated Cheques (PDCs), Standing Instruction (SI) Request with security PDCs, or ECS Form, based on the chosen repayment method
  • Margin Money Receipt

The Yes Bank car loan EMI

The equated monthly installment, or the car loan EMI, is one of the most important factors of a Yes Bank car loan that an applicant should consider. Even with the attractive Yes Bank car loan interest rates that are offered, the applicant has to make sure that the car loan EMI will be an amount that will not place any undue pressure on their finances. There are a number of facts that an individual should be aware of about the EMI. The EMI is based on a number of aspects of the car loan, like the car loan interest rates, the down payment, the total loan amount, as well as the chosen tenure for a car loan. Another fact is that even though the EMI remains the same throughout the term of the loan, the ratio of the amount of interest and the principle amount keeps varying. The EMI amount includes a higher interest and lower principal amount repayment in the beginning of the loan term, the ratio of the interest being paid keeps decreasing, and the principal amount keeps increasing in the EMI as time passes. Though you could calculate EMI for Yes Bank car loan, the ratio of the interest and principal amount paid will affect the borrower in case they wish to prepay their loan.


To calculate the EMI for a Yes Bank car loan, the following formula can be used:


EMI = [P x R x (1 + R) ^ n] / [(1 + R) ^ n - 1]


P = Principal loan amount


R = Car loan interest rates offered


N = the loan tenure, in months (or, the number of installments applicable)


An easier way to accomplish this would be to use the Yes Bank car loan EMI calculator, which can assist you in calculating the EMI that will be applicable on various Yes Bank plans for car loans. This handy financial tool requires the user to enter the loan tenure, car loan interest rates, and the total loan amount for the calculation of the applicable EMI, whether it is a Yes Bank car loan for a new car or a used car loan, ensuring that applicants make informed decisions that are well suited to their financial means.


Using the Yes Bank car loan EMI calculator


As mentioned before, the need to calculate the EMIs, before opting for a Yes Bank car loan has increased the importance of the car loan EMI calculator monumentally. It is very common to have a concern about the amount that a customer will have to pay as EMI every month. With the PaisaBazaar car loan EMI calculator, anyone can get a clear picture of how much a loan will cost them in a practical scenario. To use the PaisaBazaar car loan EMI calculator, users can find it under the tab for “tools” on the PaisaBazaar website. Whether you are considering taking a Yes Bank car loan, or you are just curious, or you need research for future plans, whether you are buying a new car, or you need a pre-owned car loan, you can simply use the EMI calculator, following the steps that are listed below.


How to use the PaisaBazaar EMI calculator for a Yes Bank car loan
 

There are sliders, as well as boxes to enter the value, in the EMI calculator for easy interface.
 

Step 1:
 

In the first part, you need to enter the principal amount for the Yes Bank car loan that you are applying for.
 

Step 2:
 

In the second section, right below the first, you need to put in the Yes Bank car loan interest rate that is offered to you.
 

Step 3:
 

In the next section, the tenure that you would like opt for repayment needs to be entered. This tenure can vary from 1 year to 7 years.
 

Step 4:
 

As all the required details are entered, on the right side of the calculator, you can see the amount that will be payable as EMI for that particular Yes Bank car loan option. The best part of this easy calculator is that any of the entered details can be altered for an immediately updated EMI.

Apply for a Yes Bank car loan

Individuals who wish to apply for a Yes Bank car loan online can do so through a number of ways that are made available by the bank to ensure ease in the application process.
 

  • You can visit any of the branches, receive the details for the various finance options for a Yes Bank car loan, and directly proceed to applying for the car loan.
  • Another way to apply for a Yes Bank car loan is through the internet, through the official Yes Banks website, after you have checked the different options and repayment plans that are offered
  • Apply for a Yes Bank car loan through the PaisaBazaar website. With PaisaBazaar.com, you can search for some of the best available deals for a Yes Bank car loan, irrespective of whether it is a new or a used car loan.
  • Customers with a Yes Bank account are also sometimes provided the option to avail pre-approved car loans.

With online applications for a Yes Bank car loan, the applicant has to submit the documents for Yes Bank car loan, as are required after the application for a loan. The applicant can find out from their branch, and have the documents sent as per their ease.

Bank Car Loan FAQs

1. What are the pre-approval documents needed to be attached with a Yes Bank Car Loan application?


A. The pre-approval documents that should be attached with a car loan application form include:
 

  • KYC documents as per Yes Bank Ltd Policy
  • Income Proof
  • Bank Statement
  • Signature proof verification
  • Pro forma Invoice

2. How much processing fee I need to pay for a car loan?


A. Processing fee to be paid in case of a car loan application:
 

  • Up to Rs 10 Lacs : Rs. 5000/
  • 10.01 to 25 Lacs : Rs. 7500/
  • 25 Lacs : Rs. 10000/

3. Are there any foreclosure charges for a Yes Bank Car Loan?


A. Partial pre-payment is not allowed for a car loan from Yes Bank, however, the various details that are related to foreclosure charges for a Yes Bank car loan are:
 

  • No foreclosure is allowed within 6 months of availing the car loan.
  • 6 months to 24 months from 1st EMI: 6 % of POS for pre-closure
  • Post 24 months from 1st EMI: 5% of POS for pre-closure

4. What is the repayment tenure of the car loan?


A. The repayment tenure for the loan is flexible and can be anywhere from 1 to 7 years


5. What are the documents that can be given as an income proof by a salaried individual?


A. Income eligibility of a salaried professional will be assessed as per the salary slips for the last 3 months / Form 16


6. What is the minimum income requirement for an individual to apply for a Yes Bank car loan?


A. The minimum income requirement to apply for a Yes Bank car loan is listed as follows:
 

  • Salaried individuals: Rs. 3 Lakh per annum
  • Self Employed Individuals: Rs. 2 Lakh per annum
  • Partnership Firms: Rs. 2 Lakh per annum
  • Private Limited / Limited Companies: Rs. 2 Lakh per annum

7. How much value of the car will a Yes Bank car loan finance?


A. For select car models, a Yes Bank car loan can finance up to 90 % of the LTV (loan to value) ratio.


8. What is the rate of interest that is offered by Yes Bank for loans to buy a new car?


A. The interest rates offered for a Yes Bank car loan vary, depending on a number of factors like the car model. The interest rate varies from 10.25 % to 12.25 % per year, but can also vary based on any changes to the base rate. So before applying, you should check with the bank for any revisions that have been made to the rate of interest for a Yes Bank car loan.


9. What are the various methods that are available for the repayment of a Yes Bank car loan?


A. Yes Bank provides three methods for the repayment of car loans. These methods are:
 

  • ECS (Electronic Clearing Service) – The Electronic Clearing Service, or the ECS, is a method that authorizes Yes Bank to debit your bank account automatically for the payments towards your car loan.
  • SI (Standing Instructions) – the standing instruction method is very much like the ECS method, except for the fact that it is basically for customers who have a bank account with Yes Bank. This method lets Yes Bank debit the EMI amount directly from your bank account on the due date, every month.
  • Postdated cheques – In cases where ECS or SI facilities are unavailable, customers can provide Yes Bank with postdated cheques to ensure repayment.

10. What documents are required for a Yes Bank Car Loan?


A. For a Yes Bank car loan, the following documents need to be submitted:
 

  • Recent photo of the applicant
  • Filled and signed application form
  • Identity Proof
  • PAN card
  • Passport
  • Driving License
  • Aadhar Card
  • Voter ID
  • I-card issued by the government
  • Age Proof
  • PAN card
  • Passport
  • Driving License
  • Voter ID card
  • Birth certificate
  • Employee ID card (only applicable for PSU or Government employees)
  • School or college leaving certificate
  • Address Proof
  • Passport
  • Driving License
  • Election ID card
  • Utility Bill
  • Bank account statement (no more than 3 months old)
  • Signature proof
  • Income proof
  • Proforma Invoice of the car to be bought
  • Bank statement of the applicant

11. What documents are required to be submitted as proof of income for a Yes Bank car loan?


A. The documents required as income proof for a Yes Bank car loan vary with different applicants.
 

  • Salaried individuals need to submit their salary slips of the last 3 months and Form 16
  • Self-employed individuals need to submit their Income Tax Returns for the last 2 years or the Income Tax Returns for the last year with an Advance Tax challan for the current year (showing higher tax paid than the previous year)
  • Partnership firms and Private Limited/ Limited Companies need to submit their Audited Financials for the last 2 years or the Income Tax Returns for the last 2 years

12. How will the Yes Bank car loan be disbursed?


A. The loan, after approval can be disbursed in one of the following ways:
 

  • Credited to a Yes Bank account that the borrower already has in their name with Yes Bank.
  • Credited to a bank account in the name of the borrower that has been designated by the borrower and has Electronic Debit instructions specified for the repayments.
  • In the form of a demand draft or a pay order that has been made out in favor of the car manufacturer or dealer.

13. Can an individual purchase a vehicle for commercial purposes with a Yes Bank car loan?


A. The car loan by Yes Bank is solely for buying personal use vehicles. For buying commercial vehicles, Yes Bank offers a separate loan that is designed for this purpose.


14. Can an applicant check possible EMIs before they apply for the car loan?


A. Yes, it is possible to calculate the EMI that will be applicable on a particular car loan by using the PaisaBazaar EMI calculator. Access the “Tools” tab on the PaisaBazaar website and select the EMI calculator. Once the calculator opens, you will need to input the details of the loan that you wish to apply for. These details include the loan amount, the rate of interest, and the loan tenure. The EMI applicable, based on these details will show up on the right side of the page. You can also alter any entered detail for an updated EMI, enabling you to compare various loan options.


15. What is the minimum CIBIL score that is considered as a good score by banks when an individual applies for a car loan?


A. When applying for a loan, banks take the CIBIL score of the applicant into consideration. Similarly, in the case of a car loan, the bank can enquire about the applicant’s CIBIL score. The minimum acceptable credit score is 750, but under certain circumstances, banks may even accept scores that are as low as 550 points.