YES Bank Car Loan Interest Rates

What are the factors that influence the interest rates on car loans?

There are many factors that influence the interest rates on car loans. Some of such factors are external to the loan product and some intrinsic. Some examples of such factors are mentioned below.

• Type of interest rate levied whether fixed rate or floating rate as floating rates are generally lower than fixed rates on loan products
• Loan amount required by the borrower which can be reduced by paying higher margin money which will result in lower need for car finance and thereby lower rate of interest.
• Inflation in the country can influence the interest rates especially floating rates which are directly proportional to such inflation rate.
• If repayment period of the vehicle is lesser and the loan amount is higher, then it will require the borrower to pay higher monthly installments which can be deemed as a higher risk so interest rates will accordingly be higher. In case of higher tenure and lower amount of loan, the risk is considered to be less so rate puff interest will be less.
• Type of vehicle to be purchased out of loan as interest rates on used car loans is generally higher than that on new car loans.
• Demand for vehicles in the market
• Category of the borrower whether an individual or a non-individual as c=some lenders provide loans at higher rates in case of non-individual borrowers
• Credit history of the applicant is thoroughly reviewed to determine the applicable rate of interest. A person with a good credit history and higher credit score will benefit from lower interest rate and vice versa.
• Repayment capacity of the applicant is also factored in to calculate the applicable rate. A good repaying capacity will not only ensure eligibility for loan but lower interest rate as well.
• Relationship of the applicant with the lender is also considered as a person having an account with the lender can get the benefit of reduced rate of interest.

Closer Look at the Salient Highlights of Car Loans from Yes Bank

These features mentioned above are explained in depth hereunder.

Quantum of Loan

Yes Bank provides car loans to the extent of up to 100% of the value of the vehicle in case of certain specified models. In other cases, the bank provides up to 90% of the value of the car as loan. The maximum and minimum amount of loan that can be provided by the bank for new cars or used cars is tabled below.

Rate of Interest

Yes Bank Car Loans are very competitive among many lenders in the market and are dependent on the credit profile of the applicant as well as the loan amount and the tenure of the loan. The applicable rates levied by the Bank for its Car loans are tabled below.

The details of the current applicable rate of interest based on the type of vehicle can be available by contacting the bank through its nearest branch or through the customer care service of the bank.

Tenure

The repayment period of car loan of Yes Bank is very comfortable and provides the applicant with flexible repayment options depending on the agreement between the borrower and the lender. The maximum period of repayment or tenure of Yes Bank Car Loans is 7 years (84 monthly EMIs) with the minimum tenure being 1 year or (12 monthly EMIs).

Margin

Margin money is to be paid by a borrower for Yes Bank Car Loan in case of selected models where the bank provides up to 90% of the finance on such vehicles. It is considered as a part of the loan application process. In certain cases, the finance provided by the bank is the full value of the car. In such cases, the margin money is not required to be paid by the borrower.

Security

The primary security of the loan provided by the bank is the vehicle purchased out of loan. Bank has the hypothecation charge on the vehicle which has to be duly registered with the Regional Transport Authority and recorded in the RC book.  A duplicate copy of the RC book and Keys have to be kept in record with the Bank.

Yes Bank may require additional guarantee in case of loan provided to certain class of borrowers which may be at the discretion of the bank and on a case to case basis.

Processing fees

The Bank levies processing fees on all the loans processed. This charge is a nominal charge and levied at the time of sanction of the loan. The applicable processing charges are 1% of the loan amount in case of new cars and 2% of the loan amount in case of used cars. These charges are subject to minimum and maximum charges as per the guidelines of the bank which are tabled below.

Part payment charges

The part payment of the loan is allowed subject to certain conditions and is also subject to nominal charges levied by the bank depending on the period in which such part payment is made. The bank does not allow any part payment of the loan before the completion of 12 months from the date of payment of 1st EMI. Moreover, the borrower is allowed to make such part payment only twice during the tenure of the loan subject to 1 payment only in any year. The charges for such part payment are tabled below.

Foreclosure Charges

Yes bank permits foreclosure of loan after completion of 6 months from the date of payment of 1st EMI. This foreclosure is subject to certain charges that are levied as a percentage of the outstanding amount. The details of charges levied on foreclosure of loan is tabled below

FAQs – Yes Bank – Car loan Interest rates