Yes Bank Business Loan

For purposes like working capital funding, buying machinery, , or expansion of a business, it is essential to have adequate funding sources. These sources are primarily banks who offer business loan to the firms requiring monetary assistance at a rack interest rate of 13.25% onwards. YES Bank is one of the leading private sector banks that offers lending solutions for MSMEs and business owners.

Yes Bank Business Loan Interest rate – 2021

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank, NBFC and RBI. GST and service tax shall be levied extra on the mentioned charges.

Also Know : Which bank or NBFCs in India offer the best business loan in terms of low interest rates?

As on 20th Jan 2021, Yes Bank introduced a Yes MSME Loan scheme through which Startups and MSMEs can avail Collateral Free loan of amount Up to Rs. 5 crore. Yes Bank’s additional features shall include pre-approved commercial credit cards, and advisory and wealth management solutions to its customers.

Yes Bank offers business loans to Private Limited Companies, Self Employed, Sole Proprietorship, Partnerships, and Limited Liability Partnerships. In addition, the business loan can be availed by professionals that include Doctors, CAs, CS and Architects and non-professionals working in trading, manufacturing and services sectors.

Eligibility Criteria

Applicant should meet the following criteria to apply for a business loan from YES bank:

• The applicant must be at least 21 years of age and not more than 65 years old
• The applicant must belong to any of the MSME businesses in the manufacturing, service and trading sector, only

Also Read – How to calculate a business loan EMI?

Yes Bank Business Loan Schemes

YES Bank provides a variety of business loan schemes for Micro, Small and Medium Enterprises (MSMEs) with the aim of developing the MSME sector.  Support is provided to all kinds of businesses by YES Bank. Some of the loan schemes offered by YES Bank are as follows:

YES SAMRIDDHI: This scheme is provided to customers who require money for businesses in the sector of trading, services, and manufacturing. However, some limited businesses are eligible to apply for this scheme excluding the ones under the negative list and seasonal business. Some of the features of this scheme are as follows:

• Maximum loan amount offered is up to Rs 4 crore
• Credit can be availed in the form of cash credit, working capital loan, term loan, export credit, and overdraft
• Non-fund credits can also be provided if asked. It can be in the form of a Letter of credit and bank guarantee
• The loan can be availed against residential/industrial/commercial plots
• Facilities such as CMS and forward cover are offered 

YES SUYOG: For the financing of SME businesses, this provides a complete solution in the sectors of trading, services, and manufacturing. Some important features of the scheme are given below:

• Maximum loan amount of Rs 2 crore can be sanctioned under this scheme
• The other features are similar to the ‘YES SAMRIDDHI’ scheme

SMART OVERDRAFT: This scheme aims at providing working capital not just to the MSMEs but also to the professionals such as doctors, engineers, CAs, and architects. The key features are provided as follows:

• Minimum of Rs 20 lakh and a maximum of Rs 1 crore can be sanctioned
• The loan can be registered against residential or commercial plots
• The loans are disbursed on the basis of parameterized templates for quick approvals
• 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 also focuses on the development of manufacturing, trading, and service sectors. It is mainly based on providing non-fund loans to potential customers. The features are as follows:

• Non-fund credits are provided in the form of Letter of Credit, Bank Guarantee and Buyers Credit
• Tenure of 180 days to 3 years is provided for the Letter of Credit
• Bank Guarantee of 36 months which includes the claiming period, as well
• Letter of Undertaking with a validity of 1 year to 3 years depending on arrangements for non-capital and capital goods

CHANNEL FINANCE: This program focuses on delivering finance to all dealers of corporates. The applicant can get the working capital and additional liquidity for the purchase of supplies. In this, an overdraft is provided to the dealer of corporates which is used as a revolving line of credit. The use of the capital is restricted to the corporate only. Customized information reports are provided to both corporates and dealers. 

YES GST: In this scheme, the aim is to provide quick and simple access for MSMEs to the finance facilities. This program can be offered purely on the basis of turnover, as per their GSTR 1 returns. The key features are as follows:

• Balance sheets and bank statements are not required for sanctioning of loan
• Maximum of Rs 1 crore can be availed in the form of Overdraft and Dropline overdraft

The approval of the loan is fast, because of less documentation

Toll Free Number: 1800 1200

Also Read: What are the government loan schemes for starting a small business?

Documents Required for Loan Application

The following documents will be required by YES bank:

• Identity proof
  • Voter’s ID card
  • Passport
  • Driving License
  • Aadhar card
• Address Proof
  • Telephone bill
  • Electricity bill
  • Sales Agreement
• Passport size photographs for all applicants
• Financial projections for the last 2 years
• Ownership Proof
• Proof of continuation:
  • Trade license
  • Sales Tax certificate
• Income Tax Returns with the income calculated for the last 2 years
• Sales/VAT Tax returns for the current financial year
• Bank Statement of accounts for the last 6 months
• KYC documents of the applicant