Yes bank is the one of the new age private sector banks growing at a phenomenal pace. It started its operation in 2004. It is the only bank which was given the Greenfield banking licence, meaning that it did not have any history in the field, in last twenty years.
Type of home loans offered by Yes Bank
In addition to funding your new house purchase the Yes bank also provides the home loan to self construct a house on a plot of land to be purchased or already owned by you. You can also avail the home loan from Yes bank for financing renovation/extension of your existing house. You can also avail the facility to get your existing home loan with another lender transferred to Yes Bank. In case you already have availed the home loan from Yes bank, you can top up your existing home loan with additional funds on the basis of increase in your income and increase in the value of the property after the original home loan was taken.
Rate of interest and processing charges
Presently the Yes bank provides home loans at variable rates popularly known as floating rate where the home loan varies periodically with the benchmark rate of the bank which is MCLR (Marginal Cost of Fund based lending rate). The rate of interest presently charged by the bank on its home loan varies between 9.35% to 10.50% per annum. The rate of interest actually offered to you will depend on your credit history as evidenced by CIBIL score as well as your negotiating ability. Generally a CIBIL score of more than 750 is considered good by the bank which prima facie establishes your eligibility to get the loan. Higher the score, lower the rate of interest may be offered to you.
The bank also charges a processing fee @ 0.5% of the home loan amount sanctioned subject to a maximum of Rs. 10,000/- for each application. In case disbursement is not availed after the sanction a non refundable fee of Rs. 7500/- becomes payable and the excess fee if any is repaid.
Documents required for home loan
The home loan application has to be duly signed by you and the joint borrower if the application is being made in the joint name. Salaried as well as self employed borrowers have to submit some basic Know Your Customer (KYC) documents. These documents are needed to establish your identity as well as your present address. For establishing the identity, you can submit copies of any of the documents like PAN card, passport, driving licence, Aadhaar Card etc. In support of your address you can submit copies of the documents where the address is mentioned. These documents include documents of ownership of the property, maintenance or utility bills of present address, passport, Aadhaar card, ration card etc. In case the place where you are staying is not owned by you, the copy of the leave and licence agreement can also be submitted. In case of rented place, you should have been staying there for quite some time and should not have moved there recently.
In case the property has already been identified, the chain of documents in case of old property along with the draft of the agreement is also needed to be submitted to the bank so that the bank can carry out the technical and valuation evaluation. In case of an under construction property the copy of of the agreement and copies of the plan approved by the local authority also needs to be attached with the loan application.
Yes Khushi home loans
The Yes bank has devised a special home loan product under the Credit Linked Subsidy Scheme (CLSS) named Yes Khushi. The home loans under this scheme are given at interest rate ranging from 10.25% to 13% whereas the processing charges levied for this are upto 1% subject to a maximum of Rs. 10,000/-. The Yes Khushi loans allows you a longer tenure of 35 years for salaried person or till the age of 62 years. For self employed it is extended till 65 years of age but with a reduced tenure of 30 years. The Yes Khushi Home loan can be taken for purchase or construction of a house. You can avail this loan for extension or renovation/repair of your existing house. Even you can transfer an existing home loan from other lender under this scheme. The size of the house under this scheme has to be over 200 Sq. Ft.
Since this is the scheme for helping people buy affordable house, even a person with an income as low as Rs. 9,000/- is also eligible to get home loan under this scheme. Even for the joint borrowers also the minimum income criteria remain the same.
Disbursement and repayment of the home loan
In case of ready to move in house, the lender generally issues the cheque/pay order in favour of the seller after the proof of payment of buyers contribution is submitted to Yes Bank. In case of an under construction property or self construction the bank disburses the home loan in piecemeal linked with stage of completion of construction as certified by an architect/engineer. In no case the bank will disburse any payment till the buyer has completely put in his share of the cost of the property.
The repayment of the home loan is to be done in Equated Monthly Instalments (EMI) where the amount of the EMI is fixed in such a way that the entire home loan with interest gets fully repaid by the end of the tenure. The payment can be made by Electronic Clearing Service (ECS) or by way of post dated cheques. In case you maintain the bank account with Yes bank, the bank will take a mandate from you to debit your bank account on the EMI date. It is very important for your to ensure that the home loan EMIs are paid on time as any consistent default in payment of EMI will adversely affect your credit score and your ability to borrow in future at competitive rates.