YES Bank Business OD - Quick Working Capital Loan

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Features of YES Bank Business Loan Overdraft

Flexible Loan Amounts:
- Smart Overdraft: Offers overdraft limits ranging from ₹20 lakh to ₹1.5 crore without requiring a balance sheet. This is ideal for MSMEs and professionals like doctors, chartered accountants, engineers, and architects.
- Scorecard-Based Lending: Provides overdraft facilities up to ₹5 crore, catering to businesses in manufacturing, trading, and services.
- YES GST Program: Offers overdraft or dropline overdraft up to ₹1 crore, with credit assessment based on GST returns, eliminating the need for bank statements.
- YES Suyog Scheme: Provides overdraft limits up to ₹2 crore for SMEs with flexible collateral options and preferential pricing for high credit scores.
Types of Overdraft Facilities:
- Standard Overdraft: Allows businesses to withdraw funds up to a sanctioned limit, even with a zero or negative balance, providing flexibility for working capital needs.

Collateral and Security Options: Overdraft facilities can be secured against residential, commercial, or industrial properties, liquid securities, or fixed deposits. Flexible collateral cover is offered based on financial scores, reducing the burden on borrowers with strong credit profiles. Unsecured options are available under specific schemes, such as YES Bank's retail business loans, reducing the need for collateral.

Purpose and Usage: Primarily aimed at meeting working capital requirements for MSMEs in manufacturing, trading, and services. Suitable for self-employed professionals (e.g., doctors, architects) to finance operational needs or business expansion. Can be used for cash flow management, purchasing inventory, or addressing short-term financial gaps.

Quick and Simplified Assessment:

Smart Overdraft: Credit assessment is based on banking transactions, GST returns, or financial scores, eliminating the need for balance sheets or profit/loss statements.
YES GST Program: Quick approval based on GST turnover, with no charge on current assets and minimal documentation.
Parameterized Template-Based Sanction: Enables fast-track loan processing with account-level customization.

Repayment Flexibility: No fixed EMI requirement; interest is charged only on the utilized amount, not the entire sanctioned limit, making it cost-effective. Repayment can be made at the borrower’s convenience, with the option to repay in lumpsum or as cash flow permits, subject to bank terms. Tenure for overdraft facilities is typically 12 months, renewable based on the borrower’s credit profile, while dropline overdrafts may extend up to 10 years.

Competitive Interest Rates: Interest rates start at 15.65% per annum, varying based on loan amount, borrower profile, and scheme. Higher loan amounts may attract lower rates. Rates are subject to market conditions and the applicant’s creditworthiness (e.g., CIBIL score of 750 or above can secure lower rates). Transparent pricing with all charges, including interest, conveyed upfront.

Minimal Documentation: Required documents include KYC of applicant/co-applicant, bank statements (6–24 months depending on customer status), proof of business vintage (e.g., shop establishment certificate), and ITR for the last 2 years. For YES GST loans, only GSTR returns are needed, streamlining the process. Digital submission of documents is supported, enhancing convenience.

Additional Features and Benefits:

Anywhere Free Banking Facility: Allows seamless banking across YES Bank branches, enhancing accessibility.
Money Monitor Tool: A digital tool to view all bank accounts in a single window, aiding financial management.
State-of-the-Art Internet Banking: Provides real-time account access and transaction capabilities.
Hassle-Free Disbursal: Quick loan processing and doorstep service for application and documentation.
Dedicated Trade Desk: Offers specialized support for trade-related financing needs.

Eligibility Criteria: Age: 21–65 years at loan maturity (some schemes specify 25–68 years). Business Type: Manufacturing, trading, services, or self-employed professionals. Eligible Entities: Sole proprietorships, partnerships, private limited companies, LLPs, and self-employed professionals. Business Vintage: Minimum 3 years of operation with a turnover of ₹1 crore or more. Credit Score: CIBIL score of 750 or above is preferred for better terms.

Specialized Schemes:

Smart Edge Program: Finances working capital and business requirements with loan amounts from ₹1 crore to ₹3 crore, based on a scorecard-linked assessment model.
YES Samriddhi: Offers overdraft and other facilities up to ₹4 crore for businesses in trade, manufacturing, and services.
Cash Backed Lending Programme: Provides comprehensive financing solutions with liquidity support.
Guaranteed Emergency Credit Line (GECL): Supports businesses with emergency funding needs.

Online Application and Support: Applications can be submitted online via the YES Bank website or through partner platforms like Urban Money or Paisabazaar. Existing customers can apply directly, while new customers can request a callback.

Benefits of YES Bank Business Loan Overdraft

Flexible Access to Funds: The overdraft facility allows businesses to withdraw funds up to a sanctioned limit as needed, even if the account balance is zero or negative. This ensures seamless cash flow management for working capital needs, inventory purchases, or unexpected expenses. Funds can be accessed anytime, providing flexibility to address short-term financial gaps without the need for repeated loan applications.
Interest Charged Only on Utilized Amount: Unlike term loans with fixed EMIs, interest is calculated only on the amount withdrawn and for the duration it is used. For example, if a business uses ₹5 lakh out of a ₹10 lakh OD limit for 10 days, interest is charged only on ₹5 lakh for those 10 days. This makes the overdraft a cost-effective financing option, especially for businesses with fluctuating cash flow needs.

No Fixed Repayment Schedule: There is no mandatory EMI requirement, allowing businesses to repay at their convenience based on cash flow availability. This reduces financial strain during lean periods.
Quick and Simplified Approval Process: YES Bank offers schemes like Smart Overdraft and YES GST Program, which use simplified credit assessment methods instead of extensive documentation like balance sheets.
Minimal Documentation: Documentation is streamlined, requiring only essential documents such as KYC, bank statements (6–24 months), business vintage proof (e.g., shop establishment certificate), and ITR for the last 2 years.
Collateral Flexibility: YES Bank offers both secured and unsecured overdraft options. Secured ODs can be backed by residential, commercial, or industrial properties, fixed deposits, or liquid securities.
Customizable Loan Amounts: YES Bank provides a range of overdraft limits to suit different business needs:
Smart Overdraft: ₹20 lakh to ₹1.5 crore.
YES GST Program: Up to ₹1 crore.
YES Suyog Scheme: Up to ₹2 crore.
Smart Edge Program: ₹1 crore to ₹3 crore.
Support for Diverse Business Types: The OD facility caters to a wide range of entities, including sole proprietorships, partnerships, private limited companies, LLPs, and self-employed professionals.
Renewable and Adjustable Limits: Overdraft facilities are typically sanctioned for 12 months but can be renewed annually based on the borrower’s creditworthiness and business performance.
Cost-Effective Interest Rates: Interest rates start at 15.65% per annum, competitive within the industry, and vary based on loan amount, credit score, and scheme.
Enhanced Banking Features:
Anywhere Free Banking: Allows businesses to operate seamlessly across YES Bank branches, improving accessibility.
Money Monitor Tool: A digital platform to monitor all bank accounts in one place, aiding financial planning.
State-of-the-Art Internet Banking: Offers real-time account access, transaction capabilities, and overdraft management, enhancing operational efficiency.
Specialized Schemes for Targeted Needs:
YES GST Program: Simplifies financing for businesses with GST registration by assessing credit based on GST turnover, ideal for small traders and service providers.
Smart Overdraft: Tailored for professionals and MSMEs, offering quick funds without extensive financial documentation.
YES Samriddhi: Supports SMEs with higher limits (up to ₹4 crore) and flexible terms.
Dropline Overdraft (DLOD): Combines the flexibility of an OD with structured repayment, suitable for businesses needing longer-term financing.
Emergency and Working Capital Support: The OD facility is ideal for managing cash flow mismatches, seasonal demands, or unforeseen expenses, ensuring business continuity.
Doorstep Service and Digital Convenience: YES Bank offers doorstep assistance for application and documentation, reducing the need for branch visits. Online application portals and partner platforms.
Boosts Business Growth: By providing easy access to working capital, the OD facility enables businesses to seize growth opportunities, such as expanding inventory, investing in marketing, or upgrading equipment.

How to Apply for YES Bank Business Loan Overdraft

1. Choose the Right Overdraft Scheme
- Smart Overdraft: ₹20 lakh to ₹1.5 crore for MSMEs and professionals.
- YES GST Program: Based on GST filings, limit up to ₹1 crore.
- YES Suyog Scheme: Up to ₹2 crore with flexible collateral.
- Smart Edge Program: ₹1 crore to ₹3 crore for high-turnover businesses.
- YES Samriddhi: Up to ₹4 crore for well-established SMEs.
2. Gather Required Documents
- KYC Documents: PAN card, Aadhaar card, or valid ID/address proof.
- Business Proof: GST registration, shop license, Udyam registration, incorporation docs.
- Financial Documents:
  - Bank statements (6–24 months).
  - ITR for last 2 years.
  - GST returns or profit/loss statements.
- Collateral Documents (if applicable): Property papers, FD certificates, or securities.
3. Select Application Method
- Online: Through YES Bank website, upload documents and apply digitally.
- Branch Visit: Submit documents and application form at nearest branch.
- Partner Platforms: Apply via Paisabazaar, Urban Money, etc.
- Doorstep Service: Schedule a visit via YES Bank customer care.
- Existing Customers: Apply via YES Online or mobile app using pre-approved offers.
4. Submit Application
- Ensure accuracy in application form.
- Attach required documents (scanned or physical depending on method).
5. Credit Assessment & Verification
- Evaluation based on credit score, turnover, financials, or GST filings.
- Collateral valuation if applicable.
- Verification through calls or field visits may occur.
6. Loan Approval & Sanction
- Receive sanction letter with limit, rate, tenure, and terms.
- Approval timelines are usually quick for streamlined schemes.
7. Overdraft Disbursal
- OD limit is activated in your YES Bank current account post-acceptance.
- Withdraw funds as needed up to sanctioned limit.

Eligibility Criteria for YES Bank Business Loan Overdraft

Applicant Age: Minimum Age: 21 years at the time of application; Maximum Age: 65 years at the time of loan maturity. Some schemes, like YES Suyog or Smart Edge, may extend it up to 68 years.
Business Type: Eligible types include Manufacturing, Trading, Services, and Self-Employed Professionals like doctors, CAs, architects, engineers, and lawyers.
Eligible Entities: Sole Proprietorships, Partnerships, Private Limited Companies, LLPs, and Self-Employed Individuals are eligible. Trusts and societies are generally excluded unless specified by a scheme.
Business Vintage: Minimum of 3 years operational history. Some schemes like YES GST Program may accept 1–2 years with strong GST or banking history.
Minimum Turnover: Typically ₹1 crore or more. Schemes like YES GST or Smart Overdraft offer relaxed turnover conditions based on GST filings or banking activity.
Credit Score: Preferred CIBIL score is 750+. Lower scores may still be eligible under stricter terms or with collateral.
Banking Relationship: Healthy transaction history improves eligibility. Existing YES Bank customers may get pre-approved offers or quicker processing.
Collateral Requirements: Secured ODs need assets like property or FDs. Unsecured options available for strong profiles under YES Suyog or similar schemes.
GST Registration: Mandatory for YES GST Program with consistent GSTR-1 and GSTR-3B filings over 12–24 months. Not mandatory for all schemes.
Financial Stability: Must show profitability and stable cash flows through ITRs, bank statements, and P&L or balance sheets.
Scheme-Specific Eligibility:
- Smart Overdraft: MSMEs and professionals, limits ₹20 lakh to ₹1.5 crore, minimal documentation.
- YES GST Program: GST-based eligibility, limits up to ₹1 crore, no bank statement needed.
- YES Suyog: Turnover ₹1 crore+, limits up to ₹2 crore, flexible collateral terms.
- Smart Edge: Turnover ₹10 crore+, limits ₹1 crore–₹3 crore, detailed financials needed.
- YES Samriddhi: Turnover ₹10 crore+, limits up to ₹4 crore, strong financial background and vintage required.
Nationality and Residency: Applicants must be resident Indians. NRIs are typically not eligible unless stated under a scheme.
No Default History: Clean credit history with no records of default in CIBIL, CRIF, or other bureaus. Legal disputes or insolvency cases may lead to disqualification.

Documents Required for YES Bank Business Loan Overdraft

KYC Documents (For Applicant and Co-Applicant):
- PAN Card (mandatory)
- Aadhaar Card, Passport, Voter ID, or Driving License as identity proof
- Address proof: Aadhaar Card, Passport, utility bill (not older than 3 months), rental agreement, or property tax receipt
- Recent passport-sized photographs
- Signature proof (if required): PAN card, Banker’s verification, or Passport
- For firms/companies: KYC of partners, directors, or key promoters
Business Proof:
- Shop & Establishment Certificate
- GST Registration Certificate (especially for YES GST Program)
- Udyam Registration Certificate (for MSMEs)
- Partnership Deed / LLP Agreement (for firms)
- Certificate of Incorporation (for companies)
- MOA & AOA (for companies)
- Professional Qualification Certificates (for CAs, doctors, etc.)
- Industry-specific licenses (e.g., FSSAI for food businesses)
- ITR acknowledgments for the past 2–3 years
Financial Documents:
- Bank statements for the last 6–24 months (as per scheme)
- Income Tax Returns with computation for the past 2 years
- GST Returns – GSTR-1 and GSTR-3B for the last 12–24 months
- Profit & Loss Statement and Balance Sheet (last 2 years, audited if applicable)
- Projected financials or business plans (if requested)
- Income proofs for professionals (consultation receipts, contracts, etc.)
Collateral Documents (For Secured Overdraft):
- Property Documents: Title deed, sale agreement, tax receipts, building plan, and encumbrance certificate
- Valuation report and legal opinion (if requested)
- FD Certificate and lien marking letter (for FD-backed OD)
- Demat account or mutual fund statements (for securities-backed OD)
- No Objection Certificate (NOC) from society/co-owner (if required)
Loan Application Form:
- Duly filled and signed YES Bank Business Loan Overdraft application form (online or offline)
- Includes applicant details, business info, loan amount, loan purpose, and collateral (if applicable)

Factors for YES Bank Business Loan Overdraft

Business Vintage: Minimum of 3 years of continuous business operations is generally required. Longer vintage improves credibility and approval chances.
Business Type: Sole proprietorships, partnerships, LLPs, private limited companies, and professionals like doctors or CAs are eligible under various schemes.
Annual Turnover: Most programs require a minimum annual turnover of ₹1 crore. Some schemes like YES GST Program offer relaxed criteria.
Credit Score: A good CIBIL score (preferably 750 or above) is essential. Higher scores can fetch better interest rates and easier approvals.
Scheme-Specific Criteria: Each scheme (Smart OD, YES GST, Suyog, etc.) has its own tailored eligibility and documentation requirements.
Collateral Availability: Secured ODs require property, fixed deposits, or liquid securities. Unsecured ODs are available for strong profiles under schemes like Suyog.
Documentation Quality: Complete and accurate documents like GST returns, bank statements, and KYC speed up processing and improve loan offers.
Repayment Track Record: Clean repayment history and financial discipline boost eligibility and help in getting higher limits.
Loan Amount Requested: Higher loan amounts may require additional documentation and collateral, especially above ₹1 crore.
Existing Relationship with YES Bank: Existing customers with a strong transaction history may get pre-approved offers or quicker processing.
Industry and Business Stability: Businesses in stable or priority sectors may enjoy preferential terms compared to volatile industries.
Interest Rate Sensitivity: Rates start at 15.65% p.a. and depend on the scheme, creditworthiness, and collateral offered.
Cash Flow Consistency: Regular and healthy cash inflow, as shown in bank statements, indicates repayment capacity and enhances approval chances.
Compliance and Tax Filings: Timely ITR and GST filings reflect financial discipline and improve credibility with the bank.
Business Location: Businesses located in tier-1 or urban centers may have higher eligibility due to better market access and lower risk perception.
Purpose of Overdraft: OD for working capital, seasonal requirements, or business expansion with a clear use case is more likely to be approved.
Promoter/Owner Profile: The financial background, qualifications, and experience of the business owner(s) are considered, especially for unsecured loans.
Business Credit Report: Besides personal CIBIL, the company’s commercial credit report from CRIF or CIBIL is often reviewed for business history and liabilities.
Banking Habits: Regular transactions, maintaining average balance, and avoiding cheque bounces improve bank’s confidence and eligibility.

Frequently Asked Questions (FAQs)

What is a YES Bank Business Loan Overdraft (OD)?

A Business Loan Overdraft is a flexible financing facility offered by YES Bank that allows businesses to withdraw funds up to a pre-approved limit, even if their account balance is zero or negative. It is designed to meet working capital needs, manage cash flow, or address short-term expenses. Interest is charged only on the amount utilized, not the entire sanctioned limit.

Who is eligible for a YES Bank Business Loan Overdraft?

Eligible applicants include:

Businesses in manufacturing, trading, or services with a minimum vintage of 3 years.
Self-employed professionals (e.g., doctors, chartered accountants, architects).
Entities like sole proprietorships, partnerships, private limited companies, or LLPs.
Applicants aged 21–65 years (up to 68 for some schemes) at loan maturity.
Businesses with an annual turnover of ₹1 crore or more (relaxed for schemes like YES GST Program).
Preferably a CIBIL score of 750 or above.
Specific schemes (e.g., YES GST Program) may have tailored criteria, such as regular GST filings.

What are the different overdraft schemes offered by YES Bank?

YES Bank offers several overdraft schemes to suit diverse business needs:

Smart Overdraft: ₹20 lakh to ₹1.5 crore, minimal documentation, ideal for MSMEs and professionals.
YES GST Program: Up to ₹1 crore, based on GST returns, no bank statements required.
YES Suyog Scheme: Up to ₹2 crore, flexible collateral, and preferential pricing for high credit scores.
Smart Edge Program: ₹1 crore to ₹3 crore, for established businesses with higher turnover.
YES Samriddhi: Up to ₹4 crore, comprehensive financing for SMEs.
Dropline Overdraft (DLOD): Combines OD flexibility with structured limit reduction over time.

What documents are required to apply for a Business Loan Overdraft?

Common documents include:

KYC: PAN, Aadhaar, passport, or other ID/address proof for applicant and co-applicant.
Business Proof: Shop establishment certificate, GST registration, Udyam registration, or partnership deed.
Financials: Bank statements (6–24 months), ITR for 2 years, GST returns (for YES GST Program).
Collateral Documents (for secured OD): Property papers, FD receipts, or liquid securities.
Application Form: Duly filled and signed.

Schemes like Smart Overdraft and YES GST Program require minimal documentation, such as GST returns or bank statements, without balance sheets.

How can I apply for a YES Bank Business Loan Overdraft?

You can apply through: Online:

Visit www.yesbank.in, navigate to “Business Banking” or “MSME Loans,” select the OD scheme, and submit the application with digital documents.

Branch:

Visit a YES Bank branch, consult a relationship manager, and submit physical documents.

Partner Platforms:

Apply via Urban Money, Paisabazaar, or other fintech partners.

Doorstep Service:

Request a callback via customer care (+91 22 61219000 or 1800 1200) for document collection.

Existing customers can check pre-approved offers via YES Online or the YES Bank mobile app.

What is the interest rate for YES Bank Business Loan Overdraft?

Interest rates start at 15.65% per annum and vary based on:

Loan amount and scheme.
Applicant’s credit score (higher scores, e.g., 750+, may get lower rates).
Collateral (secured ODs may have lower rates).
Market conditions.

Interest is charged only on the utilized amount, calculated daily and billed monthly, making it cost-effective.

Is collateral required for the overdraft facility?

It depends on the scheme:

Secured OD: Requires collateral like residential/commercial property, fixed deposits, or liquid securities.
Unsecured OD: Available under schemes like YES Suyog or retail business loans for applicants with strong credit profiles or high financial scores.

Flexible collateral cover is offered based on creditworthiness, reducing the burden for eligible borrowers.

What is the loan amount I can get under the overdraft facility?

Loan amounts vary by scheme:

Smart Overdraft: ₹20 lakh to ₹1.5 crore.
YES GST Program: Up to ₹1 crore.
YES Suyog: Up to ₹2 crore.
Smart Edge: ₹1 crore to ₹3 crore.
YES Samriddhi: Up to ₹4 crore.

The sanctioned limit depends on turnover, credit score, and repayment capacity.

How long does it take to get the overdraft approved?

Approval timelines depend on the scheme and documentation:

Schemes like Smart Overdraft and YES GST Program, with simplified assessments, may be approved within 2–5 days.
Secured ODs or larger loans requiring collateral valuation may take 7–10 days.
Complete and accurate documentation speeds up the process.

How is the repayment structured for a Business Loan Overdraft?

No Fixed EMIs: Unlike term loans, ODs have no mandatory repayment schedule. You can repay at your convenience based on cash flow.
Interest-Only Payments: Interest is charged on the utilized amount and billed monthly. You can pay interest regularly and reduce the principal as per availability.
Flexible Repayment: Deposit surplus funds to lower the outstanding balance and reduce interest costs.
Dropline OD: The limit reduces over time (e.g., over 5–10 years), combining OD flexibility with structured repayment.
Tenure: Typically 12 months, renewable annually, or longer for dropline ODs.

Can I increase or decrease my overdraft limit?

Yes, the overdraft limit can be adjusted during the annual renewal process, subject to:

Updated financials (e.g., turnover, bank statements).
Creditworthiness and repayment history.
Bank’s approval based on business performance.

Contact your relationship manager or branch to request a limit revision.

List of Yes Bank Business Loan Overdraft Products

Yes Bank Smart Overdraft
Yes Bank GST Overdraft
Yes Bank Suyog Overdraft
Yes Bank Working Capital Overdraft

Yes Bank Smart Edge Overdraft
Yes Bank Samriddhi Overdraft
Yes Bank Dropline Overdraft*

Yes Bank Non-DP Linked Overdraft
Yes Bank Cash Backed Overdraft
Yes Bank Guaranteed Emergency Credit Line (GECL) Overdraft

Yes Bank Retail Business Overdraft
Yes Bank Professional Overdraft
Yes Bank Trade Finance Overdraft

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