Yes Bank Business Loan 2022

AFINOZ.COM is an online financial marketplace for customized rate quotes on loans and investment products in India. The company is owned by DS Finworld Pvt. Ltd.

Yes Bank Business Loan 2022 Highlights

The bank offers lending solutions for MSMEs, SME, and business owners for a variety of financial needs of businesses like working capital funding, purchase of machinery, or expansion of a business.

Description

Yes Bank is a reputed private sector bank that offers a slew of financial services to its customers. Yes Bank business loans are customized to perfectly match your business needs. The bank offers lending solutions for MSMEs, SME, and business owners for a variety of financial needs of businesses like working capital funding, purchase of machinery, or expansion of a business.

Features and Benefits of Yes Bank Business Loan

  • Higher loan amount up to Rs. 50 lakh
  • Flexible loan tenure from 12 to 60 months
  • Collateral-free Borrowers don’t need to submit assets as collateral
  • No hidden charges: The interest rates and other charges will be communicated to customers in writing.

Yes Bank Business Loan Interest Rate – 2021

Particulars

Interest rate

Interest rate

13.25% to 20% p.a.

Processing fee

Up to 2.50% of the loan amount subject to min Rs. 999

Prepayment charges

Prepayment not allowed until payment of 6 EMIs

  • Between 7 – 24 months: 4% of outstanding balance

  • Between 25 – 36 months: 3% of outstanding balance

  • Between 37 – 48 months: 2% of outstanding  balance

  • >48 months of repayment - NIL 

Loan amount

Up to Rs. 50 lakh

Loan tenure

12 months to 60 months

Collateral 

NA

Note: Above mentioned interest rates, fees and charges are subject to periodic changes, depending on the sole discretion of the bank and RBI. GST and service tax shall be applicable over and above the mentioned charges. 

Yes Bank Business Loan Eligibility Criteria

Entities like a sole proprietorship, partnerships, private limited companies and limited liability partnerships can get a business loan from Yes Bank. The bank also offers loans to self-employed professionals like doctors, chartered accounts, company secretaries, lawyers and architects and non-professionals engaged in trading, manufacturing and service sectors.  

The applicant will need to meet the following eligibility criteria to apply for a business loan from Yes Bank: 

  • Age of the applicant should be between 21 years and 65 years old.
  • The borrower must be engaged in any of the businesses in the manufacturing, service and trading sectors.

Yes Bank Business Loan Schemes

To support the small industries, Yes Bank offers business loans for micro, small and medium enterprises (MSMEs) under multiple schemes. Some of the loan schemes offered by Yes Bank to support different kinds of businesses are as under: 

Yes Samriddhi

Borrowers involved in the business of trading, services, and manufacturing can get funds under this scheme to meet their business goals. However, this loan is not for businesses under the negative list as well as seasonal businesses. 

Key features of Yes Samriddhi: 

  • Higher loan amount up to Rs. 4 crores.
  • The loan is available in the form of cash credit, term loan, export credit, working capital loan, and an overdraft.
  • Non-fund credits, such as a letter of credit and bank guarantee, are also available if required. 
  • Borrowers can get a loan under this scheme against residential/ commercial, industrial plots. 
  • Loan solutions like CMS and forward cover can be availed. 

Yes Suyog

This loan scheme is designed to finance SME businesses of trading, services, and manufacturing. Most features of this loan scheme are the same as the Yes Samriddhi scheme. 

Key features of Syog loan scheme:

  • A higher loan amounts up to Rs. 2 core can be availed under this scheme. 

Smart Overdraft

MSMEs and self-employed professionals such as doctors, engineers, architects, and chartered accounts can get working capital facilities under this scheme. 

Key features of Smart Overdraft

  • A business loan from a minimum of Rs 20 lakh and a maximum of Rs 1 crore can be sanctioned.
  • The loan can be disbursed against residential and commercial plots.
  • The loans are offered on the basis of parameterized templates.
  • The loan can be sanctioned in the form of fund-based limits like overdraft and a dropline overdraft.
  • Options for sanctioning the loan in the form of fund-based limits are available, which is the Overdraft and Dropline Overdraft 

Cash Backed Lending Program

This scheme is designed to offer non-fund loans to potential customers. Manufacturers, traders, and service providers can get credits under this scheme as well.  

Key features of Cash Backed Lending Program

  • It is a non-fund credit in the form of a Letter of Credit, Bank Guarantee, and Buyers Credit. 
  • The Letter of Credit offered for a repayment tenure ranging from 6 months to 3 years. 
  • Bank Guarantee is available for 36 months that includes the claiming period as well. 
  • Letter of Undertaking is valid for 1 year to 3 years, depending on arrangements for non-capital and capital goods.

Channel Finance

All dealers of corporates can get working capital and additional liquidity for the purchase of supplies under this scheme. An overdraft is offered to the dealers of corporates that they can use as a revolving line of credit. This credit is offered to corporates only. However, customized information reports are provided to corporates as well as dealers. 

Yes GST

With this scheme, Yes Bank offers quick and simple finance facilities to MSMEs. Funding is offered on the basis of the annual turnover in their GSTR 1 returns. A business loan up to Rs. 1 crore in the form of overdraft and dropline can be availed. Bank statements and balance sheets are not required to get the loan. AS a result, the amount is approved and disbursed instantly. 

Documents Required for Yes Bank Business Loan Application

Here is the checklist of documents required to apply for a business loan from Yes Bank:

  • Duly filled loan application form with passport size photographs of all applicants
  • Identity proof
    • Voter’s ID card

    • Aadhar card

    • Passport

    • Driving License

  • Address proof

    • Telephone bill

    • Electricity bill

    • Sales Agreement

  • Financial projections for the last 2 years
  • Proof of business ownership
  • Proof of continuation:
    • Trade license

    • Sales tax certificate

    • ITR (Income Tax Returns) with the income calculation for the last 2 years

    • Sales tax returns for the current financial year

    • Bank statement of the current accounts for the last 6 months

    • KYC documents of the applicant(s)

➤ FAQs

Ques. What can I get a business loan for?

You can get a business loan for a variety of requirements such as the purchase of raw material, operational payments, purchase of capital assets like plant and machinery, building offices, etc.

Ques. What is working capital?

Working capital is the funds used to manage day-to-day business operations.

Ques. What are the common types of working capital solutions?

Major types of working capital facilities include cash credit, overdraft, dropline overdraft, working capital demand loan, bill discounting, pre and post shipment finance, letter of credit, bank guarantee.

Ques. What is the toll free number of Yes Bank?

Customers can call 1800 at 1800 1200 to reach the bank and ask queries regarding financial services offered by the bank.

➤ News

YES Bank advances edge up 3.6%, deposits uplift 30%
10 Oct 2021
India’s leading private sector lender - YES Bank announced a 3.6% boost in its loans and advances as of September 30, 2021, to Rs 1.72 lakh crores from Rs 1.66 lakh crores a year ago. Of this, gross retail disbursements broadened at a much swifter speed and jumped up by 126.6% to Rs. 8,531 crores as on September 30, 2021, as contrasted with Rs 3,764 crores a year ago.