Yes Bank Personal Loan Interest Rate: Calculation Process, Other Charges

Yes Bank Personal Loan Interest Rate
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Yes Bank Personal Loan Interest Rate: Yes Bank is one of India’s most popular private banks and is known for its loans and advances services. The bank offers various types of loans such as home loans, personal loans, education loans, etc. Personal loans are usually unsecured loans that are sanctioned based on the income of the applicant. If you want to get a Yes Bank education loan without collateral, then you can apply for a personal loan for education from the bank. 

Yes Bank personal loans for education are available for the students at affordable interest rates and easy loan procedures. Let’s check and understand this topic and other major features of the loan.

What is Yes Bank Personal Loan Interest Rate?

The personal loan interest rate starts from 10.99% (as of June 2024). The interest rate can vary between 10.99% to 20% depending on factors like loan amount, repayment period, credit score etc. Yes Bank offers attractive and competitive personal loan interest rates, making it a preferred choice for those seeking the loan. With Yes Bank, you can take advantage of low-interest personal loans and use them for educational expenses. Check more details below:

FeaturesDetails
Yes Bank Personal Loan Interest Rate10.99% to 20% per annum
Processing ChargesUp to 2.5% of the net loan amount
Stamp Duty and Other Statutory Fees for the LoanAs Applicable by law
Maximum Loan AmountINR 40 lakh
CIBIL Associated ChargesINR 50/-

Also Read: Comparing different loans to study abroad? Check here all about the differences between education loans and personal loans for education

Yes Bank Personal Loan Interest Rate: Calculation Process

Ever wondered how the interest rate for personal loans or any other type of loan is calculated and determined by the bank? Well, there are certain categories involved and adding all of them provides the effective rate of interest on personal loans. External Benchmark Lending Rate (EBLR) is one of the most common rates implemented by banks to calculate interest. Another major rate is Repo Linked Lendering Rate (RLLR) which is also used by a lot of banks. Check the example below:

For example, if EBLR is 9.50% and the spread determined by the bank is 1.49%, the effective rate of interest will be:

EBLR + Spread i.e. (9.50 + 1.49)% = 10.99%

Major Factors Affecting Interest Rate

The major factors that affect the interest rate are the loan amount, credit score, net monthly income, tenure of the loan, employment status etc. Check details about some of the major factors below:

Credit Score

A credit score is the most important factor that is considered while determining the rate of interest. The credit score reflects a borrower’s creditworthiness and repayment behaviour based on their credit history. A higher credit score, usually above 750, indicates a lower risk of default and this encourages the banks to offer lower interest rates. In the same way, a lower credit score suggests higher risk, leading to higher interest rates. Maintaining a good credit score through timely repayments and responsible credit usage can reduce Yes Bank personal loans for education.

Loan Amount and Tenure

The amount of the loan and the repayment period also play an important role in determining the interest rate for a personal loan from Yes Bank. Bigger loan amounts might come with slightly higher interest rates due to the increased risk to the bank, whereas smaller loan amounts could attract lower interest rates. 

The total tenure of the loan impacts the interest rate. If the repayment period is shorted, the EMI will be high but the interest rate will be low as the lender’s risk is minimised over a shorter repayment period.

Income and Employment Status

A borrower’s income and employment status are critical factors which affect this bank’s interest rate. Individuals with stable, high-income jobs are considered lower-risk borrowers due to which the bank offers a low rate of interest. On the other hand, borrowers with irregular income or less stable employment may face higher interest rates as it reflects the increased risk perceived by the lender.

Also Read: Planning to move to England for studies? Check here all about the best places for currency exchange in Sheffield

Yes Bank personal loan interest rates are affordable and competitive. Always try to negotiate with the bank over interest rates if applying for a bigger loan amount. Check some of the FAQs based on the same.

FAQs

What is the Yes Bank personal loan interest rate?

Yes Bank personal loans interest rates start from 10.99% and can go up to 20% per annum. The specific rate within this range depends on various factors like the loan amount, repayment period, credit score, etc.

How does Yes Bank calculate the interest rate for personal loans?

Yes Bank calculates the interest rate for personal loans using various benchmarks like the External Benchmark Lending Rate (EBLR) and the Repo Linked Lending Rate (RLLR).

What factors affect the interest rate on a Yes Bank personal loan?

The interest rate on a Yes Bank personal loan is affected by several factors like the applicant’s credit score, the loan amount and tenure, and the borrower’s income and employment status.

Are there any additional charges associated with Yes Bank personal loans?

Yes Bank personal loans come with additional charges such as processing fees up to 2.5% of the net loan amount, stamp duty and other statutory fees as applicable by law, and a CIBIL-associated charge of INR 50.

What is the maximum loan amount I can get from Yes Bank as a personal loan?

Yes Bank offers personal loans up to a maximum amount of INR 40 lakh. The actual amount that an applicant can borrow depends on their eligibility, which is assessed based on their income, credit score, employment status, etc.

To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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