YES Bank OD - Instant Credit, Low Interest Rates

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Key Features of YES Bank Overdraft (OD) Facilities

Purpose: To provide flexible access to funds for short-term needs without liquidating fixed deposits or other securities.
Types of OD Facilities:
- Overdraft Against Fixed Deposits: Available through YES Mobile app. Borrow against fixed deposits with up to 90% of the FD value. Interest rate: Typically 1% above the FD rate.
- Personal Overdraft Loan: Allows individuals to access extra funds from their bank account without fixed EMIs, offering repayment flexibility.
- Business Overdrafts: Smart Overdraft and Drop Line Overdraft for MSMEs, professionals (doctors, CAs, architects), and businesses for working capital or operational needs.
- Salary-Linked OD: For salaried individuals with YES Bank salary accounts. Limit based on salary and credit profile.

- Eligibility: Available to individuals (including salaried and self-employed) and businesses with qualifying assets such as FD, property, or salary accounts.
- Minimum Requirements: Varies by product - FD OD requires an active FD; Salary OD requires regular salary credits of ₹25,000+ per month.
- No Collateral Required for Personal OD: Personal Overdraft is typically unsecured, while other ODs are secured by assets like FD or property.
- Credit Score Importance: Critical for unsecured OD (CIBIL 750+ preferred); secured ODs have relaxed credit requirements.
- Pre-approved Offers: Existing YES Bank customers may receive pre-approved OD offers with minimal documentation.
- Flexible Repayment: No fixed EMIs - repay as per your cash flow convenience, offering more flexibility.
- Interest Rates: Typically lower than credit cards but may be higher than standard personal loans, charged only on utilized amount.
- Limit Determination: The OD limit is set based on asset value (up to 90% for FD) or income (2-3x monthly salary for Salary OD).
- Digital Management: Monitor and manage your OD facility through YES Bank's mobile app or internet banking.
- Renewal: The OD facility typically needs to be renewed annually, subject to review of your financial profile.

Benefits of YES Bank Overdraft (OD) Facilities

Access Funds Without Breaking FD: YES Bank's OD facility allows you to borrow up to 90% of your fixed deposit's value, ensuring you can meet urgent financial needs without liquidating your FD.
Low Interest Rates:
- OD Against Fixed Deposits: Interest rates are typically 1% above the FD's interest rate.
- Personal OD: Starts from 10.25% p.a. (varies based on credit profile).

- Flexible Access to Funds: OD allows borrowers to withdraw funds as needed up to the sanctioned limit, making it ideal for short-term expenses. Repay at your convenience within the limit, unlike fixed EMIs in personal loans.
- No Processing Fees for FD OD: YES Bank does not charge any processing fees for its OD facility against FDs.
- Interest on Utilized Amount Only: Interest is charged only on the amount withdrawn, not the entire OD limit, making it cost-effective compared to term loans.
- Preserves Fixed Deposits: OD against FDs allows you to borrow up to 90% of the FD value without breaking the deposit, ensuring continued interest earnings.
- Quick Activation: Apply online via YES Mobile app for OD against FDs with quick approval.
- Against FDs: Up to 90% of FD value, with minimum balance requirement of ₹10,000.
- Salary-linked OD: Based on income and credit profile.
- Business OD: Up to ₹5 crore for eligible businesses.
- Flexible Tenure and Renewal:
- Standard OD: 1-5 years, renewable subject to review.
- FD-linked OD: Aligned with FD maturity.
- Minimal Documentation for FD OD: Since the OD is secured against your FD, YES Bank requires minimal additional documentation.
- Positive Impact on Credit Score: Regularly servicing the OD facility can positively impact your CIBIL score.
- No Prepayment Penalties: Repay the utilized OD amount at any time without penalties, offering flexibility to manage finances.

Applying for YES Bank Overdraft (OD) Facilities

Required Documents
- OD Against FDs: FD certificate or account details, identity proof (PAN/Aadhaar), address proof (Aadhaar/utility bill).
- Personal OD: Last 3 months' salary slips (for salaried), ITR for 2 years (for self-employed), bank statements, identity and address proofs.
- Business OD: Business registration documents, GST certificate, ITR for last 2 years, property documents (if secured).
- Additional: Passport-size photographs; YES Bank account details.
Application Process
- 1. Online Application
  - YES Mobile app or website offers a seamless process for OD applications.
  - Steps:
  - Tips:
- 2. Offline Application
  - Visit a YES Bank branch for OD applications.
  - Steps:

Eligibility Criteria for Overdraft (OD) Facilities

General Eligibility
- Age: Minimum: 21 years; Maximum: 60 years (58 at loan maturity).
- Nationality: Resident Indians.
- Credit Score: 700+ preferred (750+ for better terms).
- Bank Relationship: Active YES Bank account preferred.
OD Against Fixed Deposits
- Available to all YES Bank customers with active FDs.
- No income or credit score requirement; FD acts as collateral.
- OD limit: Up to 90% of FD value.
- FD must be free from lien and held in the applicant's name or jointly.
Personal OD
- For salaried individuals with minimum monthly income of ₹25,000 (₹18,000 in some regions).
- Minimum 2 years of work experience with at least 6 months in current job.
- For self-employed individuals: Minimum annual income of ₹3 lakh as per ITR.
- CIBIL 750+ preferred.
Business OD
- For business owners with at least 3 years of operations.
- Must have stable income as per ITR and financial statements.
- OD limit based on business turnover and financial health.
Other Requirements
- Documentation: Varies by OD type—includes FD proof, salary slips, business documents, and KYC.
- Debt-to-Income Ratio: Should be below 50%.
OD Against Property
- Property must be owned and free from encumbrance.
- Clear title and valuation required.
- Loan-to-Value (LTV) ratio up to 60% of property’s market value.
- Applicable to both residential and commercial properties.
OD Against Securities/Insurance
- Available against dematerialized shares, mutual funds, and life insurance policies.
- Ownership proof and market valuation of securities required.
- Policy surrender value considered in case of insurance-backed OD.
- Higher quality assets may allow higher OD limits.

Documents Required for Overdraft (OD) Facilities - YES Bank

General Documents (Applicable to All OD Types):
Identity Proof (any one):
- PAN Card (mandatory), Aadhaar Card, Voter ID
- Passport
- Driving License
Address Proof (any one):
- Aadhaar Card
- Utility Bill (not older than 3 months)
- Rent Agreement
- Passport
- Voter ID
Other Documents:
- 2-3 recent passport-size photographs
- YES Bank account passbook or statement
- Cancelled cheque (if required)
- OD application form (offline/online via YES Mobile app)
OD Against Fixed Deposits:
- Fixed Deposit certificate or receipt
- FD account statement or passbook entry
- Declaration of FD ownership (for joint FDs)
- No income proof or credit score required
- FD must be active, not under lien, and in applicant's/joint name
Personal OD:
For Salaried Individuals:
- Last 3 months' salary slips
- 6 months' bank statements showing salary credits
- Form 16 (if available)
- Employment proof (appointment letter or company ID)
For Self-Employed Individuals:
- ITR for last 2 years with computation
- Profit & Loss statement and Balance Sheet
- Business registration proof (if applicable)
- 6 months' business bank statements

Factors Affecting YES Bank Overdraft (OD) Facility

Credit Score:
- CIBIL score of 700+ is required, with 750+ preferred for better terms.
- Higher scores may qualify for lower interest rates and higher limits.
Income Level:
- Salaried: Minimum ₹25,000/month (₹18,000 in some regions).
- Self-employed: Minimum ₹3 lakh/year as per ITR.
- Higher income qualifies for larger OD limits.
Employment Stability:
- Salaried: 2+ years work experience with 6+ months in current job.
- Self-employed: 3+ years in business/profession.
Existing Relationship with YES Bank:
- Existing customers may get preferential rates and faster processing.
- FD holders can get instant OD against their deposits.
Interest Rate:
- FD OD: Typically 1% above FD rate.
- Personal OD: Starts from 10.25% p.a.
- Business OD: Varies based on profile and collateral.
OD Limit and Tenure:
- FD OD: Up to 90% of FD value; tenure matches FD maturity.
- Personal OD: ₹1 lakh to ₹50 lakh; 1-5 years tenure.
- Business OD: Up to ₹5 crore; renewable annually.
Debt-to-Income Ratio:
- Should be below 50% to qualify for OD facility.
- Existing EMIs and credit obligations are considered.
Documentation:
- Complete and accurate documents ensure faster processing.
- FD OD requires minimal documentation compared to unsecured OD.
Type of Collateral (if applicable):
- OD against shares, property, or insurance requires proper valuation.
- Higher quality collateral may increase OD limit.

Frequently Asked Questions (FAQs)

What types of OD facilities does YES Bank offer?

Overdraft Against Fixed Deposits: Up to 90% of the FD value.
Personal Overdraft: Unsecured revolving credit for individuals.
Business Overdrafts: Smart Overdraft and Drop Line Overdraft for businesses.
Salary-Linked OD: For salaried individuals with YES Bank salary accounts.

Who is eligible for a YES Bank OD facility?

FD OD: YES Bank customers with active fixed deposits. No income or credit score requirement.
Personal OD: Salaried (₹25,000+ monthly income) or self-employed (₹3 lakh+ annual income).
Business OD: Business owners with 3+ years of operations and stable income.
Age: 21 to 60 years (58 at loan maturity).
Credit Score: 700+ preferred (750+ for better terms).

What is the OD limit and tenure?

FD OD: Up to 90% of the FD value; tenure aligns with FD maturity.
Personal OD: ₹1 lakh to ₹50 lakh; 1-5 years tenure.
Business OD: Up to ₹5 crore; renewable annually.

What are the interest rates for OD facilities?

FD OD: 1% above the FD interest rate.
Personal OD: Starts from 10.25% p.a.
Business OD: Varies based on profile and collateral.
Interest is charged only on the amount utilized, not the entire limit.

What documents are required for an OD facility?

FD OD: FD certificate, PAN/Aadhaar, address proof, photographs.
Personal OD: Salary slips (3 months), bank statements (6 months), employment proof, KYC documents.
Business OD: Business registration, ITRs (2 years), GST certificate, bank statements, ID/address proofs.

How can I apply for an OD facility?

Online: Use YES Mobile app or website, select OD type, enter details, upload documents for instant approval.
Offline: Visit YES Bank branch, submit application form and documents for approval in 2-5 days.

Are there any processing fees for OD?

FD OD: Usually nil.
Personal/Business OD: Up to 2.5% of the OD limit.

Can I prepay or foreclose the OD facility?

Yes, YES Bank allows prepayment or foreclosure after 12 months with applicable charges (2-4% of outstanding amount).

What is the advantage of OD over a personal loan?

Flexibility: Withdraw funds as needed within the limit and repay anytime.
Lower Cost: Interest charged only on the amount used.
Savings Protection: FD OD lets you access liquidity without breaking your FD.

What happens if I default on OD repayments?

Penal interest may be applied on overdue amounts.
Defaults negatively affect your credit score and future OD eligibility.

Can I get an OD without a YES Bank account?

No, a YES Bank account is mandatory for OD facilities. FD OD requires an active YES Bank FD.

How is the OD limit renewed?

FD OD: Automatically renewed based on FD maturity.
Personal/Business OD: Subject to annual renewal with updated documentation.

YES Bank Overdraft Products

YES Bank Secured Overdrafts
YES Bank Unsecured Overdrafts

YES Bank Overdraft against Fixed Deposits (OD against FD)
YES Bank Overdraft against Property (LAP)

YES Bank Overdraft against Shares and Other Securities
YES Bank Overdraft against Insurance Policies

YES Bank Overdraft against Salary (bob Salary Privilege Account)
YES Bank Baroda Overdraft for E-commerce Business (Amazon/Flipkart)

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