What is a Personal Loan Top-Up from Yes Bank?
A Personal loan Top Up from YES Bank is available to all customers with an existing Personal loan. A Personal loan Top-Up from YES Bank is a convenient option for existing customers needing funds for personal usage: YES Bank respects the relationship with customers repaying their installments timely, and further awards amounts when required on a priority basis.
What is the Eligibility requirement for a Personal loan Top Up from YES Bank?
Vintage of existing Personal loan
The vintage of the current loan must be three months or more, and an applicant must make the repayment of a minimum of three EMI or more before applying for the extra amount. Exceptions are applicants with high-income minimal obligations and a good CIBIL score.
The Applicant should work with an approved company in the YES Bank company category list for a Top-Up Personal loan. Proof of continuous employment for 12 months is required to process. A break in the employment track is not acceptable
The Applicant's income criteria and financial eligibility
The salary transferred to the salary account must be ₹25k and above. The Bank will ensure the Applicant has the financial bandwidth and can afford the extra EMI for the Top-Up amount. If the payment of the Applicant has increased, the Bank will grant a Top Up readily, whereas if there has been a loss of income, the lender will review accordingly.
The CIBIL score and history
The Customer's CIBIL score or credit history is essential to check the quantum of credit held in the form of Loans, consumer borrowings, or credit cards.
The repayment track of all credit used should be on time, and the CIBIL score above 720 points to be eligible for a Top-Up.
The YES Bank calculates the Applicant's eligibility, considering all the obligations reflected in the CIBIL record, and will deny a request for a Top-Up if the CIBIL record reflects that a Lender has recently granted additional credit.
What are the benefits of a Personal loan Top Up from YES Bank?
An Applicant can use a Personal loan Top Up for all Personal requirements
The Customer is free to use a Personal loan Top Up from YES Bank for lifestyle requirements as required, such as home renovation, buying electronic gadgets, holiday expenses, family celebrations, or emergency needs like paying credit card bills or medical expenses.
A Personal loan Top Up from YES Bank is a Quick Process
An applicant with an existing Personal loan from YES Bank can receive extra funds when required as a Top Up; the Bank processes the request with priority, as the details and track record are already known and verified. As a result, the Applicant receives funds on time, and the Bank is happy to retain a good customer.
Pay a single EMI with a Personal loan Top Up
The Top Up approved is added to the principal balance of the existing Personal loan; therefore, the Customer is comfortable paying a single installment.
Apply for a Personal loan Top Up to Yes Bank to avail the maximum eligibility.
The process for a Top Up involves the foreclosure of the existing Personal loan, thus increasing the eligibility for an additional loan amount as a Top Up. If the loan amount required is in excess, the Applicant can easily avail the amount with a Top Up.
Advantage of an existing relationship:
The YES Bank respects the customer relationship and offers enhanced loan amounts as a Personal loan Top Up and awards Applicants paying the installment of their loan on time with a lower interest rate, an affordable EMI and better terms and conditions.
Restructure your loan with a Balance Transfer and Top Up
Individuals running a Personal loan with an external Bank can now apply for a Transfer of the Principal dues to YES Bank with a lower interest rate and a Top Up for surplus funds.
With this transaction, the Customer achieves a lower interest for the entire loan amount, a single installment, and the extra amount required as a Top Up.
What are the features of a Personal loan Top Up from YES Bank?
Significant features of a Top Up loan from YES Bank include:
The Loan amount that can be sanctioned as a Top Up
The YES Bank sanctions the Loan amount as a Top Up from a minimum of ₹50 k up to a maximum of 15 lakhs. The loan amount an Applicant is eligible for depends upon the policy of the Bank, the Applicant's eligibility, and the CIBIL score.
The Tenure for Repayment
The Tenure for the Personal loan Top Up repayment is 12 to 60 months, allotted by the Bank depending on the loan amount approved and the Customer's repayment capacity.
Minimal Documents required for processing
The Top Up Applicant is a prior Customer of YES Bank; therefore, most documents are available with the Bank. Thus, the request for a Top Up requires minimal documentation for processing. However, if the Applicant has changed jobs and residence, updated KYC documents and a new proof of employment are required.
What is the Loan amount granted as a Top Up?
The Applicant can apply for the loan amount required, but the amount granted will be according to the Bank's criteria. The eligibility calculation for the loan amount is as per the following:
- The net monthly salary of the Applicant transferred to the Bank Account.
- The total EMI paid for the YES Bank Personal loan and other loans with external Lenders.
- YES Bank includes 5% of the Credit Card bills outstanding in the monthly obligations.
- The sum of the EMI the Applicant is currently paying, not including the existing Loan from YES Bank and other commitments, is deducted from the Net Salary of the Customer.
A multiplier is applied to the balance as per the company category of the Customer in the YES Bank company category list to arrive at the eligibility for the loan amount.
What are the charges for a Personal loan Top Up from YES Bank?
Interest Rate: The interest rate for a Personal loan Top Up ranges from 10.99% to 18% charged @ reducing balance. The rate applied for the Top Up is as per;
- The current rates offered by YES Bank.
- The rate of interest approved for the existing Personal loan.
- The additional amount the Customer requires as a Top Up on the Personal loan.
- The establishment category of the Customers employer, according to the YES Bank Company category list.
The processing fee is a one-time charge for issuing the funds; the Bank deducts the expenses on disbursal from the loan amount approved. The Applicant has to give no cost at the time of application.
Other significant charges are similar to that of a Fresh Personal loan
What are the Process Steps for A Personal Loan Top-Up from Yes Bank?
To Apply for a Top Up or to add an extra amount to an existing personal loan, the process steps are as follows:
- Apply for YES Bank with the Top Up option and documents as required for a new loan, including the KYC, Income documents, and Bank statement.
- The Documents are verified, and the Bank will view the CIBIL details to check the Score and credit history of the Applicant.
- Banks conduct Verification of the Applicant to confirm the residence and employment details; the Bank may waive verification if the same is as previously verified.
- The final decision to approve the request is with the Underwriter, who assimilates the above data and calculates if the Customer is finally eligible.
The steps followed for the disbursal are as follows:
- First, the Applicant accepts the terms and conditions for the YES Bank Top-Up loan and signs an agreement.
- The Bank forecloses the existing Personal loan and generates a new Account with the Principle balance of the current loan and the Top Up amount.
- The Top Up amount is transferred to the Applicant's Bank Account by ECS.
- The Applicant pays a new EMI per the approved Tenure on the authorized date.
Is a Top Loan better than a New Loan?
To get a Top Loan or apply for a New Loan depends on the status of the existing loan and the Customer's requirements. The following factors will help make a decision:
- The existing loan should be eligible for a Top Up as per the eligibility requirements of YES Bank.
- A Top Up makes more sense financially if the existing Personal Loan is in the initial stages, as the interest repaid is minimal. In contrast, if the Tenure has crossed the halfway mark, the interest paid is more than the Principal loan amount. Restructuring the loan with a Top Up is costly.
- A Top Up loan is beneficial if an additional EMI is unaffordable. With a Top-Up and restructuring of the current loan, the Applicant can request an increased Tenure with a suitable EMI.
- If the additional requirement for funds is for a limited period, applying for a New/ Parallel loan is better: which is independent of the previous loan and repaid when funds are available.
- A Top Up loan increases the eligibility for loan amount; As with the preclosure of the existing loan, the principal loan amount reduces. Thereby the Customer is eligible to apply for an additional amount.