YES Bank in association with DHFL – Dewan Housing Finance Limited offers home loans to everyone who approaches them. With their variety of home loan offer by YES Bank customers feel easy to finance their dream houses and repay the loan earlier as well. The home loan interest rate YES Bank charges vary from 9.85% to 13% depending on the type of loan you choose. With their KHUSHI home loans, now even the economically weaker section of people finding it easy to build their homes as YES Bank disburses the loan to people even with Rs. 9000 income on a monthly basis.
Home Loan Interest Rates – Types
Let’s take a look at the different charges associated with YES Bank Home Loans –
|Processing Fee||2% of loan amount (Min. Rs.15,000)|
|Fee for late payment||24% annually|
|Fee for part-payment or foreclosure||2.5% on the fixed rate home loans and nil for the flexible rate home loans|
|Physical paper-format Statement of Account||Rs. 100|
|Cheque bounce charges||Rs. 750|
|Additional interest||2% per annum which is charged over and above the normal interest charges on the amount of loan o/s|
|Charges for cheques swaps||Rs. 500|
Now, let’s see the interest rate for different types of loans –
|Types of Interest Rates & Fees||Charges Applicable|
|Regular Home Loans||9.85% 12%|
|YES KHUSHI – Affordable Home Loans||10.25% -13%|
|Interest rate with 3 Months MCLR||MCLR + 0.50%|
|Interest rate with 6 Months MCLR||MCLR + 0.35%|
|Interest rate with 12 Months MCLR||MCLR + 0.15%|
YES Bank customers can avail home loans on base rate instead of Marginal Cost of Funds based lending Rate (MCLR). They can also switch in between the two rates within the tenure of the loan. The interest rate varies according to the benchmark you are choosing.
Factors that Affect Home Loan Interest Rates
The interest rate on the home loan that you have applied for depends on various factors which are –
- Location of your home: You might be surprised to know but the location of your home has some effect on the interest rate you get. The interest rate for a home loan taken for a home in the urban area can differ for a loan taken for a home in the countryside. Similarly, state-wise the rate of interest rate changes on the home loan as well.
- Credit Score: This score is crucial for any loan and so for a home loan as well. If you have a great credit score, your interest rate on the home loan can be less and vice versa. It is important to keep an eye on the credit score always and try to improve it so that you can avail loan at a lower interest rate.
- Loan Amount: The Interest rate is generally higher on the loan amount which is small and vice versa. The lender has a various cost involved in disbursing the loan, so, if the amount of loan is higher, they can make more profit and thus interest rate is also lower for the same.
- Tenure of Loan: Your home loan interest rate depends on the tenure for which you are taking the loan. If the tenure is long, then the interest rate will go up and if it is short then you can avail the loan at a lower interest rate. This also decides the amount of EMIs. Though the interest rate goes down with shorter tenure, the EMI goes up on the other hand pertaining to the fact that the principal amount along with the interest gets divided amongst less number of months.
- Down Payment: Another crucial factor which determines your home loan interest rate is the amount you pay as the down payment while availing the loan. Down payment has an inverse relationship with the interest rate of the home loan. If you pay the more down payment, the interest rate will be lower and vice versa.
- Type of Interest Rate: The type of loan also determines the rate of interest it will bear. Supposedly, if you choose a fixed interest rate, then your interest component will be the same for the complete tenure of the loan. While for a flexible or adjustable-rate home loan, the interest component may differ as to the underlying rate (base rate or MCLR) changes.
How To Choose A Home Loan At Lower Interest Rates?
For choosing a loan with a lower interest rate you can do the following –
- Choose a tenure which is shorter: This will reduce the interest rate and with YES Bank, you can choose any tenure for the home loan repayment up to 35 years.
- Transfer the Home loan Balance: You can also reduce your home loan interest rate by shifting/transferring the home loan from your current lender to another lender.With YES Bank, you can get a lower rate of interest on your home loan starting from only 9.85%.
Regular Payments of EMI: EMI consists of interest and a part of the principal. So, if you miss your EMI, the interest on the next EMI will be charged on the amount outstanding including the previous EMI which includes the interest component. This, in turn, will increase your interest as well.
YES Home Loan FAQs
- What is Floating Interest Rate Home Loan?
It is the interest rate which is decided by the benchmark like the MCLR or Base Rate that you choose. With this, your interest rate keeps changing as the benchmark changes.
- Is there any tax benefit on a home on interest?
Yes, you can avail tax benefit on home loan interest as well as the principal amount. For interest, you can avail a deduction of maximum Rs. 2 lacs in a financial year.
- Can I switch from Fixed to floating rate?
Yes, with YES Bank, you can shift from fixed rate to floating rate of interest or the other way round with a fee of 0.5% on the remaining amount of home loan principal.
- Can I Change the benchmark rate?
Yes, you can anytime change your benchmark rate for a floating interest rate without paying any charges.