DBS Bank Home Loan Interest Rate

DBS Bank Home Loans pack in a lot of punch as they cater to elite customers. The bank offers a variety of Home Loan schemes for first-time homebuyers as well as those changing homes. One of the positive aspects of a DBS Bank Home Loan is that the bank approves construction projects in advance by ensuring proper due diligence. It spares you the legal hassles of verifying the genuineness of title of the property. Other attractive features of the DBS Home Loan are its attractive rates of interest and ease of processing.

• Purpose of loan: DBS Bank has Home Loan products for purchasing readymade and under-construction properties. The bank provides you with the option of buying a property from bank-approved builders and developers. Approved projects ensure there are no issues with the title to the property, thereby enhancing the comfort and convenience factor.
• Exciting rates of interest: DBS Bank Home Loans cater to all requirements such as the construction of the house to repairs and renovations. The bank offers attractive interest rates that are not only competitive but also reasonable.
• Quantum of the loan: DBS Bank caters to a vast clientele ranging from the middle-income group to the elite. Hence, you have Home Loans up to 5 Crores to suit your requirements. Therefore, DBS Bank should be an ideal location for realising your dreams of building your dream home.
• Flexibility in repayment: DBS Bank offers flexible loan repayment tenures extending up to 20 years. Therefore, it can also help in enhancing your overall Home Loan eligibility.
• Loan to value ratio: DBS Bank finances up to 80% of the cost of the project. Therefore, for a loan of 25 Lakhs, the borrower needs to invest 5 Lakhs, whereby DBS Bank finances the remaining 80% of the project cost.
• Tranche-based EMI option: The regular EMI of your DBS Bank Home Loan commences only after the full disbursement of the loan. The borrower has the facility of repaying the interest portion alone during the construction period. Hence, it is effectively a simple interest loan up to the date of disbursement of the final instalment of the loan. This facility is useful when you opt to purchase a property under construction.
• NRI finance available: Non-resident Indians can also purchase property in India. They can approach the DBS Bank offices in select countries.

DBS Bank follows the MCLR concept for deciding the Home Loan interest rates for its customers. The MCLR is a market-rate linked reference rate that depends on several internal factors, as well. This concept is in force in India since April 01, 2016. All loans sanctioned after this date subscribe to the MCLR concept.

DBS Bank has adopted the MCLR system of pricing its Home Loans. This rate represents the rupee lending rate for DBS Bank in India.

DBS Bank announces its MCLR every month, as per RBI directives. However, the actual lending rates depend on other factors. The bank loads the premium over the MCLR rate while determining the rate of interest applicable to a particular Home Loan account.

DBS Bank has announced its latest MCLR with effect from September 07, 2019.

The pricing grid for DBS Home Loans and Loans against property is as listed below:

• DBS Bank refers to the 3M MCLR for pricing its Home Loans
• DBS Bank has three types of interest structures:
  • Fixed-rate structure: The rate of interest remains fixed for the entire tenure of the loan
  • Floating rate structure: The rate goes up and down along with a change in the MCLR
  • Hybrid rate structure: The rate of interest remains fixed for a specific period following which it converts to a floating rate structure.
• The individual pricing depends on several other factors:
  • Amount of loan availed by the borrower
  • The type of facility (flexi or non-flexi)
  • The customer segments
  • Internal risk assessment of the borrower

• The pricing will be within the range mentioned above
• DBS Bank will announce its MCLR at regular intervals. The pricing will also undergo periodic review.
• Before the concept of MCLR, DBS Bank was following the Base Rate Structure. The conversion from Base Rate to the MCLR concept is permissible on the payment of conversion charges.

Additional Reading: Cibil score required for home loan

• Apply online through the official website of DBS Bank
• Approach any branch of DBS Bank in your city and apply in person

Through MyMoneyMantra

MyMoneyMantra provides you with the facility of applying for DBS Bank Home Loan from the MyMoneyMantra website.

The advantages of doing so are many:

• You get the option of comparing different Home Loan products on a single page
• MyMoneyMantra has loan executives to guide you through the loan application process
• The best aspect of it all is that these services are available free of cost

Additional Info: You can also avail Navi Home Loan

DBS Bank website has an EMI Calculator on its website. Prospective borrowers can check their eligibility before applying for the Home Loan. The EMI Calculator enables borrowers to calculate their EMI for various repayment tenures.

The customer has to enter the following details to get the EMI:

• The prospective loan amounts
• The rate of interest
• The loan repayment tenure

MyMoneyMantra has a similar EMI Calculator on its website. It helps you determine your loan EMI. The calculator also gives you a break-up of the principal and interest component of your repayments over the entire loan tenure.

DBS Bank allows you to repay your Home Loan instalment in various ways.

 DBS Bank customers have the following options:

• Submitting PDCs in advance
• Setting up a Standing Instruction on the savings account for debiting your loan instalment
• Using internet banking to transfer funds from your savings accounts to your Home Loan account

 Other customers have these options in front of them:

• Submit PDCs in advance. However, you should note to replenish the cheques on exhaustion
• Register an ECS mandate for recovery of your loan instalment
• Remit funds through NEFT/RTGS/IMPS from your bank account using internet banking

Tip: Check free credit score before applying for a loan

DBS Bank calculates your Home Loan interest on the daily reducing balance methodology. This mode of calculation of interest is the ideal one.

One of the salient features of DBS Bank Home Loan is the transparency of interest and service charges. The bank revises its services charges at regular intervals. Customers can refer to the DBS Bank website for the latest service charges.

Additional Reading: Check cibil score by pan card