Yes Bank Loan Against Property
Apply for Yes Bank Loan Against Property to avail hassle free funding up 5 crore against residential, commercial, school, industrial & warehouse units for extended tenure up to 15 Years. By applying online you can lock the lowest Yes Bank LAP interest rate @ 8.85% p.a and get flexible repayment options. Other customised terms include drop line overdraft (OD), higher eligibility amount & multiple balance transfer benefits.
Yes Bank Loan Against Property Details
A loan against property is an advance wherein a property is mortgaged to avail the loan. The funds received from availing a loan against property can be utilised for any purpose provided it should be of speculative nature. The money can be used to upgrade business, fund personal need like medical expenses, education, marriage or vacation. The borrower is not required to submit an end-use certificate. The property which is set as collateral remains mortgaged with the bank until the loan is liquidated in full. The repayment of the loan against property is made through EMI i.e. Equal Monthly Instalments.
Eligibility for Yes Bank Loan Against Property
- Employees of Central/State Government Organisations, PSUs, Reputed Companies and MNCs are eligible to seek loan against property.
- Self-employed professionals and non-professionals can apply for a loan against property provided they have a minimum cash profit of 4 lakh per annum and should be in business for at least 3 years.
- Salaried employees with private or government jobs can apply for a loan against property subject to their minimum annual income of 3 lakh and should be in ob for at least 3 years.
- For cases where income is considered for loan against property, the age of the applicant should be at least 23 years and a maximum of 65 years or retirement age, whichever is less at time of maturity of loan.
- For cases where income is not considered for eligibility, applicant must be minimum of 18 years of age and maximum of 70 years. All loans should be liquidated before the borrower turns 85 years.
- Maximum loan amount up to 85% of the market value of the property is allowed as loan against property.
- The loan must be repaid in maximum of 15 years.
- The applicant should have a good banking track record and a healthy credit score
Types of Yes Bank Loan Against Property
| Purpose of Loan | Loan against property can be availed for business or personal needs. It can be used for purchase, extension of property, education, medical expense, wedding, vacation, etc.Borrower is not required to submit an end-use certificate.Borrower cannot use the proceeds for trading or speculation purpose |
| Loan Amount | Up to 85% of the market value of the property is allowed as loan against property |
| Rate of Interest | Yes Bank issues loan against property interest rate starting from 10.50% p.a. |
| Loan Tenure | Maximum of 15 years are allowed as a loan term for loan against property |
| Security | The property against which the loan is sought is set as collateral and is mortgaged with the bank until the loan is repaid in full. |
| Processing Fee | Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000. |
| Prepayment Charges | No fee is charged in case a loan against property is prepaid. |
| Foreclosure Charges | 4% of the outstanding principal amount is charged to foreclose a loan against property.Foreclosure is not allowed within 12 months from the date of loan disbursal |
Lease Rental Discounting
Lease Rental Discounting is a term loan facility. It is a collateral backed loan. It is offered against rental income received by applicant leased out properties and contracts. The lease rental discounting loan against property is offered depending upon the market value of a property and the discounted value of rentals.
| Purpose | The loan availed under lease rental discounting can be used for business expansion, working capital inflow, renovation of interiors, purchase of commercial property, or any personal or business need. The purpose should not be speculative in nature. |
| Quantum of loan | The maximum loan amount available under lease rental discounting is up to 10 Crores. However it can go up to 15 Crores subject to lessee profile and other internal policy terms and conditions. |
| Margin | A margin of 20% on the net present value of future rentals and 50% on the market value of the property. |
| Repayment Tenure | The loan should be repaid in maximum of 7 years. |
| Rate of Interest | A competitive rate starting at 10.50% p.a. |
| Security | The property in question must be set as a collateral security with the bank. The property can be residential or commercial. |
| Processing Fee | Maximum of 2% of the sanctioned loan amount, subject to a minimum of 10,000. |
| Prepayment Charges | No fee is charged in case a loan against property is prepaid. |
| Foreclosure Charges | 4% of the outstanding principal amount is charged to foreclose a lease rental discounting loan against property.Foreclosure is not allowed within 12 months from the date of loan disbursal |