DBS Bank or Development Bank of Singapore offers products that are focused on the requirements of each of its customers. The bank has a large network across 15 countries and is one of the most trusted financial institutions in the world. Loan Against Property offered by DBS Bank allows customers to make the most of the value of their property. You have the option of both overdraft facilities and term loans with this bank.
The advantage of choosing DBS Bank is that you get loans that are customized to make repayment easier and hassle free. These loans have a quick turnaround time, making it possible for you to have access to funds when you need it, be it for personal use or business use.
The loan against property interest rates applicable on the DBS Bank are extremely affordable. The interest depends upon the employment status of the applicant, the income of the applicant, the value of the property and other factors. The interest rate offered by DBS Bank for a loan against property with a Flexi Loan plan is up to 9.70%. The rate of interest offered by DBS Bank for a loan against property without a Flexi Loan plan is up to 9.30%.
The charges applicable on the loan against property is:
|Charges Description||Charges Applicable|
|Processing Fees||Up to 1% of the loan amount sanctioned by the bank.|
|Cheque Bounce Charges||NA|
|Document Retrieval Charges||NA|
|Duplicate No Objection Certificate||NA|
|Other charges such as stamp duty||On actuals|
|Default interest||18% default interest is applicable in case the EMI is not paid. This is charged on the installment that is overdue for the period when the repayment has been defaulted.|
|Switch fees||Up to 5000 as agreed by the customer based on the service request. This fee is applicable for conversion of variable interest to fixed interest and vice versa.|
|Conversion Fees||Up to 1% on the outstanding amount. This loan is applicable when a regular loan plan is converted to flexi loan.|
|Re-pricing fees or conversion to RBI Repo Rate||Re-pricing fees are charged on the loan amount outstanding and can go up to 5000.|
|Part payment fees|
For loans with a variable interest rate- NIL
For loans with a fixed interest rate- 2.5% of the outstanding amount if the part payment made is more than 25% of the opening principal amount
If the loan is foreclosed within the first three years, the fee charged is 4% of the loan amount that is pending.
If the loan is foreclosed after the first three years, the fee charged is 2% of the amount that is pending.
DBS Bank offers two types of loans against property. One is a regular mortgage loan and the other is a flexi loan that works like an overdraft account. The loans against property are provided as per the value of the property that is being pledged. The features of the loan are variable as per the profile of the borrower.
Here are some of the primary and most important features of these loans that customers should be aware of before they apply for the loan:
Purpose: The purpose of these loans is flexible and allows the borrower to make use of the sanctioned loan amount for personal and business requirements. The purpose of the loan, however, must be provided to the lender in detail in order to avail this loan.
Quantum of Finance: The borrower can get up to 65% of the value of the property as the maximum loan amount. This, however, depends upon various factors such as the income of the individual, the employment status, the nature of business and others. You can check the loan amount that you are eligible for by providing necessary details on the eligibility calculator online.
Repayment Tenure: You have a flexible loan repayment tenure of up to 15 years. These repayments are made in the form of Equated Monthly Installments through ECS or post-dated cheques. You also have the option of making part payments on the loan or foreclosing the loan before the tenure of the loan is completed.
Margin required: As mentioned above, you can get 65% of the value of the property as loan amount. Therefore, a security of up to 35% may be necessary for these loans.
Security: The loan amount that is sanctioned to you must be secured by providing the primary mortgage of the property to the bank. Additional collateral security might be necessary based on the profile of the customer and the type of loan that you have applied for. In some cases, the bank may also require a guarantee from an individual or a corporate deemed suitable by the bank.
Processing fees: A processing fee is charged on the loan at the time of disbursement. This is equivalent to up to 1% of the loan amount sanctioned.
Foreclosure Charges: Foreclosure charges are applicable on loans with a fixed rate of interest. This depends upon the tenure of the loan that has been completed before you foreclose it. If the tenure completed is less than three years, then the foreclosure charges are 4% of the pending loan amount. After completion of three years, the foreclosure charges are 2% of the outstanding loan amount.
Prepayment fees: Prepayment fees are also applicable only on loans that have been availed with a fixed rate of interest. The prepayment fee is 2.5% of the prepayment made is more than 25% of the outstanding loan amount.
There are several benefits of getting a DBS Bank Loan Against Property as mentioned below:
In order to ensure that you get your DBS Loan against property approved, you need to make sure that you submit all the documents that are necessary. The documents differ slightly when it comes to salaried and self-employed individuals.
Here is a complete checklist to make sure that you are able to complete your loan application process without any hassles:
Completed loan application form along with your recent photographs.
ID Proof: Any government issued ID Card such as the passport, driving license, voters ID, PAN card or Adhaar Card.
Adhaar Card, school leaving certificate, passport or any other authorized government issued certificate or ID card.
The income proof varies for salaried and self-employed individuals as mentioned below:
All the necessary documents for the property that is to be mortgaged such as the title deed, approved floor plans, property tax receipts and others.
The bank may require you to submit other documents depending upon the information provided in the application form and other factors like your income, employment status and more.
MyMoneyMantra is one of the best finance portals in the country today. They bring together the best banks and NBFCs under one portal. This helps them connect with potential customers and vice versa, simplifying the process of applying for a loan or getting any type of financial assistance.
The benefits of choosing My Money Mantra to apply for your loan are as follows:
You get to compare products from more than 90 NBFCs and Banks that are listed on the My Money Mantra Portal.
MyMoneyMantra lists all the features of the loans and products in details to help you understand them in detail. This includes the interest rates, the quantum of finance, the rates and charges and more.
My Money Mantra gives you end to end services from the time you apply for the loan, until the disbursement of the loan.
All the loan formalities such as documentation will be taken care of right at your doorstep.
There is a fixed 24x7 process that helps follow up with the bank or NBFC about the status of your loan to increase the turnaround time.
MyMoneyMantra has received over 100 banking awards for its excellent customer service and the unique financial products that have been developed for customers.
You can customize your loan plan based on your requirement and repayment capacity.
You also have access to a panel of financial experts who will answer all loan related queries that you may have.
When you apply for a loan, you need to make sure that you have all the information down to the last detail. This is very important to make sure that you are able to repay the loan comfortably in the future.
One such tool that is available on My Money Mantra is the Loan Against Property calculator. It gives you the most vital information about the loan such as the quantum that you are eligible, the possible EMI for the loan and more to help you make an informed decision.
Using this EMI Calculator is also very simple and all you need to do is follow these simple steps:
Log on to My Money Mantra.
Register and then choose the loan against property calculator.
Enter details of the loan such as the loan amount, your income, the expected tenure as asked by the online submission form.
Once you have provided these details, all the information about the loan that you need including the EMI payable will be displayed on the screen.
Being prepared before you apply for a loan is one of the best ways to make sure that you do not default on repayments in the future. The most important thing that you need to know is whether you will really be able to afford the loan that you are applying for. When you use the Loan Against Property Calculator, you will be able to see the exact EMI that is payable towards the loan each month.
Once you have deducted all your expenses every month from your income, you will be able to check if the EMI is affordable to you or not. Depending on this, you can choose a different loan plan or can make necessary changes in your budget each month to fit the EMI in comfortably.
However, before you begin to calculate the expenses and the finances, you will know if you are even eligible for the loan or not. This helps prevent any chances of rejection on your loan application. You will also be able to find alternate loan plans that will suit your profile.
Knowing these two important details plays a very important role in your credit portfolio. Making sure that you are able to afford the loan ensures burden free repayment. This means that your repayment towards the loan will be regular, increasing your credit score. You can also avoid the chance of your loan application being rejected. This is another important reason for the credit score to drop. You can even narrow down on your options so that you only send out a limited number of loan applications each time to keep your credit score intact.
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ICICI bank loan against property up to Rs. 5 Crore can be availed of online as well as offline by salaried and self-employed applicants. The LAP can be for applied for business expansion, long term working capital, debt consolidation, equipment purchase, medical exigency, education/ marriage of children, holiday and much more. Higher loan amounts are available for select customers.
DBS Bank provides you with a minimum quantum of 11 Lakhs and a maximum loan quantum of 5 crores. This loan amount depends upon the market value of your property. You can get up to 65% of the market value of the property as the final loan amount.
Usually, DBS Bank will intimate the customer about a pending payment via phone or email. However, despite this if the customer fails to make a payment towards the loan, a late payment interest will be levied. This interest rate is applicable at 18% per annum. The principal that you will pay the loan towards is calculated for the period when the EMI was delayed.
The loan amount is usually disbursed within 15 days of the complete processing of the application. This is however subject to the fact that the customer has submitted all the documents required by the bank. In case of any missing documents or any misinformation provided by the customer to the bank, the process may take much longer.
You have to make your payments towards the EMI through a few modes that are allowed by DBS Bank as mentioned below:
The borrower and the bank may agree to other modes of repayment such as collection of cheques as well.
Yes. When you pledge a property for a loan at DBS bank, it must be ensured. This prevents any chances of liabilities in case of any untoward incident such as a fire or natural calamity. DBS bank must be listed as the beneficiary of the policy before you apply for a loan against property.