DBS Bank Personal Loan Eligibility

DBS Bank offers  instant online personal loan to salaried as well as self-employed individuals who are aged between 22 to 60 years and earning a minimum monthly income of at least Rs. 20,000. You can get up to Rs. 15 Lakhs from the bank at interest rate of 10.99% to 34% p.a.

DBS Bank Personal Loan Eligibility Criteria

Only eligible applicants will be successful with their applications and eventually receive DBS Personal loan. The criteria for self-employed and salaried applicants are spelt out below.

For Salaried applicants

  • The minimum age is 22 years
  • The maximum age is 60 years at the time of maturity
  • The minimum income the applicant should earn is 20,000 a month

For Self-employed applicants

  • The minimum age is 22 years
  • The maximum age is 60 years at the time of maturity
  • The minimum income the applicant should earn is Rs 20,000 a month

Features of DBS Bank Personal Loan

In the table below, we provide the features of DBS Personal Loan. Note that the features for both salaried and self-employed applicants are the same.

ClassSalariedSelf-employed
PurposeTo cover expenses for weddings, medical cost, education cost, vacation and any other personal expensesTo cover expenses for weddings, medical cost, education cost, vacation and any other personal expenses
Employment CriteriaApplicant must be gainfully employed by a Central, State or Private organization with a regular monthly salary paid into a salary accountApplicant must be engaged in an economic activity or in the running of a business with regular monthly income a shown in the financial documents presented
Age bracket22-60 years22-60 years
Interest rate10.99%-23.99%10.99%-23.99%
Maximum loan tenure60 months60 months
Minimum incomeRs 20,000 monthlyRs 20,000 monthly
Processing fee2.50% of total loan amount2.50% of total loan amount
Loan Foreclosure2%-4.50% of outstanding loan amount2%-4.50% of outstanding loan amount
Penal rate2%2%
Loan typeUnsecured loanUnsecured loan
Mode of applicationOnline application through the digibank appOnline application through the digibank app

Differences in minimum income required in different cities

When applying for loans, many lenders include different income brackets for applicants depending on their city of residence. Under this structure, residents living in advanced cities like Delhi and Kolkata are expected to earn a significantly higher income than those living in less advanced cities to compensate for the higher living costs and other factors. For DBS' Personal Loan however, this is not the practice as the minimum income criteria is Rs 20,000 for all applicants regardless of their city of residence.

Documents required for DBS Bank Personal Loan

The application process is 100% online so personal documents should also be submitted online alongside the online application form. Here is a shortlist of all required document. Please note that providing one of the document from among the list under each category is all you need.

  • Identity Proof: Voter ID, Driver License, Passport, PAN Card
  • Address Proof: Telephone bill, Ration Card, Passport, Driver License, Bank Passbook or Statement, Lease agreement, Electricity bill
  • Age Proof: Passport, PAN Card, A certificate from a government authority
  • Income Proof: Salaried employees - Bank statement or a passbook showing records for the last 3 months (only if the amount applied for is above the approved limit).  Self-employed - Bank Statement or passbook showing records for the last 12 months (only if the amount applied for is above the approved limit)
  • Processing fee for the loan (Up to 2.50% of the loan amount)

Factors affecting DBS Bank Personal loan eligibility

Not every applicant who applies for DBS's Personal Loan succeeds in getting the loan. This is a result of certain factors mitigating loan approval, which may be down to the fault or ignorance of the applicant. Making yourself aware of what these factors might be is the surest way to avoid them entirely. Find below, some of the factors that may negatively impact your chances of getting the loan.

  • Age at the time of applying: Your age as at the time of applying will be a significant determinant as to whether you succeed in getting this loan or not. The minimum age accepted is 22 while the maximum age is 60. What this means is that any applicant who is below the minimum age and above the maximum age will be denied. However, this is not the only clause one should be mindful of. Also of paramount importance is the age gap between your current age and the maximum age in relation to the loan tenure. For instance, if an applicant is 57 years and applies for a 4 year personal loan, as at the time of maturity, his age will be 61. Under DBS Bank's lending policy such an application will be denied as the age would have exceeded the maximum age criteria.
  • Your personal income: Personal income is another factor never to overlook. The minimum income all applicants should earn to avail this loan is 20,000 every month and this is for both salaried and self-employed applicants. Any applicant earning below this figure will be disqualified because of this alone.
  • Incomplete/invalid documents: The documents submitted alongside the loan application form will be verified for authenticity and validity. If the documents submitted are fake or expired your application will be terminated. The same will apply if you submit the wrong documents in place of the right ones.
  • Credit profile: Your credit profile is of importance to lenders if you want them to issue a loan to you. The average minimum CIBIL score allowed is 650 and above. If your score is below 650, DBS Bank may choose not to issue the loan to you on account of this.
  • Economic status: What you do for a living may work for or against you when applying. People who are not employed should not apply for this loan. This loan is also not open to pensioners as well. Only those who are salary earners or self-employed may apply as this loan is essentially for this category of applicants.
  • Huge debt: Indebtedness may affect your chances significantly. DBS Bank will not be so keen to grant you a loan if you owe a significant debt to another creditor.

Tips to improve DBS Bank Personal loan Eligibility

Preparing your documents and your credit profile in advance before submitting your application will improve your chances of getting a DBS Personal Loan. It doesn't cost money to improve your eligibility status. All you need to do is to be strategic in your planning and below, we show you how to go about it.

  • Pay your debt: If you owe one or more than a few creditors, it will do your chances no harm to pay them what you owe. Although the reason why you want to take up this loan is down to cash constraint but if you have a debt pile up, no lender will want to risk giving you a loan for fear of payment default. Avoid owing a debt if you can help it but if you cannot, take concrete steps to pay up. One smart way to go about this is to pay the debt in instalment long before you even apply for the loan. A low debt profile leads to a high credit score.
  • Evaluate your financial capacity: Before you apply for any loan, it pays to first evaluate your financial capacity since it will be foolhardy to take up a loan you cannot afford to pay back. Take your time to do a personal assessment of your finances. You can do this by analyzing your income for the last year and projecting the same for the next year if possible. Added to this should be your debt profile. From the lowest to the highest debt, you need to document them so you will have a fair idea of how much you owe people and organizations. A careful financial evaluation will help you ascertain how much more debt you can add to the already existent one in the form of a loan.
  • Fix errors in your credit report: As part of evaluating your finances, obtaining your credit report is a good idea. If you cannot obtain yours for reasons beyond your control, endeavor to use an eligibility checker to evaluate your eligibility. If, however, you are able to obtain your report card, carefully scrutinize it for errors of any kind. If you find errors, make sure you correct them.
  • Only apply for what you can conveniently pay back: This is the golden rule of loan application. Only apply for an amount you can conveniently pay back. The wisdom in doing so cannot be overemphasized. Applying for an unreasonable amount will not suffice because DBS Bank will only approve it if your income can accommodate the amount. An amount that will take about 40% or less of your monthly income as EMI payment should be your ideal target when applying for a loan.
  • Use a single bank account: If you use different bank accounts to receive your monthly salary or business income, it may work against your eligibility status. This is because only a bank statement from a single account can be submitted for review. Having your income scattered across different accounts won't help your case as the income entries on the other accounts not submitted will not be accounted for. If you use a single bank account as a collection point for all your income and you present a statement of account for it, your income status will be positively impacted.
  • Submit only valid documents: Make sure you only subject valid documents and not outdated ones. All documents should reflect your current age, address, and employment profile.
  • Apply jointly: Presenting a joint application is another way to improve your eligibility. You can present a joint application with your spouse. How do you do this? By simply pooling your income together and indicating in your application to that effect. A joint application increases income eligibility more than anything else.
  • Extend repayment tenure: Applying for an extended tenure is another step to take to improve eligibility. Since the maximum tenure for the loan is 5 years, you do not have to place yourself under an extra burden by applying for a shorter tenure. Shorter loan tenure attracts a higher EMI unlike a longer tenure. So therefore, you should always consider your income and the potential EMI percentage deductions when picking tenure. If your lifestyle will be significantly impacted by a high EMI amount, we suggest that you apply for a longer tenure to reduce EMI charges.
  • Apply early: Applying early will reduce the possibility of crossing the maximum age gap before the maturity of the loan.

Kotak Personal Loan Festival Offer 

Ahead of festival season, Kotak Mahindra Bank has announced Rs 999 flat processing fee offer on Personal Loans. Customers can avail of instant approvals on personal loan applications up to Rs. 20 Lakhs at lowest interest rate starting at 10.25% p.a for maximum of 5 years. 

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DBS Bank Personal Loan Eligibility FAQs

Who is qualified to apply for DBS Bank Personal Loan?

DBS Bank Personal Loan is only open to two categories of applicants. They are the Salaried and Self-employed applicants.

What conditions must a Salaried applicant satisfy to get a DBS Loan?

The Salaried applicant must be permanently employed by the Central Government or a State government if he or she is a civil servant. If not, permanent employment with a private organization is required.

What conditions must a Self-employed applicant satisfy to get a DBS Loan?

The Self-employed applicant must either be a Professional or Non-professional person. Professionals like lawyers, doctors, engineers, and the likes are welcome. Non-professionals may include business owners and any individual with a verifiable means of income.

Why is DBS Personal Loan an attractive proposition?

This loan is stress-free and paperless. You do not need to submit hard copies of your documents to complete the application process. The entire application process is done at your convenience through DBS Bank' Digibank app. The stress of visiting a DBS Bank branch is also eliminated.

How much does DBS Bank offer as a Personal Loan?

There is a minimum and a maximum amount? You can apply for a loan ranging from Rs 25,000 to Rs 15 lakh and any amount in between. How much you can avail depends on your eligibility.

What are the documents required of me?

This loan is completely paperless and requires only some personal information about yourself. If you, however, wish to apply for an amount above the approved limit, you will be required to submit a bank statement and other banking details for review.

What are some of the charges attached to the loan?

There are quite a few. You will be asked to pay a processing fee which is 2.50% of the total loan amount you are applying for and this fee is tax inclusive. You will also pay an EMI fee monthly all through the loan tenure until the principal and interest are fully repaid. The interest amount is determined by the interest rate at which the loan was issued to you. Other charges include penal fees for payment default (2% of the defaulted amount), foreclosure charges (2%-4.50%) and prepayment charges. For more information on this, kindly visit DBS Bank's official website to find out more.

How long will it take me to complete the loan application process?

It takes only a few minutes, as the steps are few and simple. Just download the digibank app if you are a first time user and launch it. Register your personal details and proceed to fill out the required details to apply.

How will the cash be transferred to me?

After your digibank online account has been verified, DBS Bank will transfer the money to your digisavings account from which you can then withdraw the sum into your bank account.

What is the interest rate for this loan?

There is no single interest rate for the loan. Interest ranges from 10.99%-23.99%.

How much will I be charged as interest?

The interest you will be charged for the loan depends on the approved loan amount.

Who determines how much I receive as a loan?

All loans are issued at the discretion of DBS Bank India after reviewing the information and documents provided by applicants.

Does DBS Bank determines what I may or may not use this Personal Loan for?

DBS Bank does not place any restrictions on Personal Loans it issues to customers. After reviewing your personal details and approving the loan, you are at liberty to use the loan in any way you deem fit.

What makes up the EMI amount?

The EMI amount is made up of the loan amount received, which is also called the Principal, and the interest amount. Interest is calculated using the interest rate at which the loan was issued.  Both of these components make up the EMI amount.

Do I need to provide my banking details to avail of this loan?

It depends. If you are applying for a figure within the approved amount you don't need to furnish DBS bank with any banking details whatsoever. On the other hand, if you wish to apply for a maximum figure above the approved amount, DBS will demand your bank details and your statement of account for a specific period.