About DBS Bank
Getting a loan against property is one of the best ways to get a large loan quantum for any personal or business use. For any property owner, this is a simple and quick loan option that requires minimal documentation. Loans against property are given on the basis of the value of the property that you mortgage. Also known as mortgage loans, these loans are provided to salaried individuals, self-employed individuals as well as independent businesses or large corporations.
DBS Bank Loan Against Property
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.
Eligibility for DBS Bank Loan Against Property
The eligibility criteria set for DBS Bank Loan Against Property helps determine the repayment capacity of the borrower. These loans are provided to both salaried individuals and self-employed individuals.
There is an eligibility calculator on the official DBS website that helps you understand the maximum loan amount that you qualify for and the maximum EMI payable. The eligibility criteria for these loans are as follow:
The applicant must be the sole owner of the property. In case of joint loan applicants, they must be co-owners of the property.
The property must be marketable and should not have any mortgage or loan applicable at the time of applying for the loan against property.
The minimum net income of the individual (self employed and salaried) required is 100000 per month.
The current EMI payable on any existing loans should not be more than 100,000,000 per month.
The outstanding balance on the credit card is not more than 100,000,000.
The outstanding interest on the annual interest towards overdraft accounts should not be more than 100,000,000.
Interest Rates and Charges for DBS Bank Loan Against Property
The interest rates applicable on the DBS Bank loan against property 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|
Up to 1% of the loan amount sanctioned by the bank.
Cheque Bounce Charges
Document Retrieval Charges
Duplicate No Objection Certificate
Other charges such as stamp duty
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.
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.
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.
Processing Fees and Security for DBS Bank Loan Against Property
The processing fees for a loan against property is mentioned in the final loan agreement. This amount is payable after the disbursal documents have been executed for the loan. A loan processing fee of up to 1% of the sanctioned loan amount is applicable on these loans.
The security that you need to provide in order to get an approval on the loan against property offered by DBS Bank is as follows:
The bank is provided first mortgage over the property that the loan is being obtained against. This may be done in any form that is acceptable to the lender.
A guarantee is required in the form of a personal or corporate guarantor as deemed suitable by the bank.
Deemed promissory notes as required by the bank.
Additional security may be required by the bank depending upon the profile of the customer.
Types of DBS Bank Loan Against Property
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.
Advantage of DBS Bank Loan Against Property
There are several benefits of getting a DBS Bank Loan Against Property as mentioned below:
The documentation process is minimal and the loan is processed without any hassles.
The staff at DBS is highly experienced and can handle all your loan requirements smoothly.
The repayment tenure is flexible and you get up to 15 years to make repayments on your DBS loan.
The loan to market value offered is high with DBS Bank loans, making it easy for you to raise a large loan quantum quickly.
You have the option to apply for the loan online as well.
The interest rate offered is competitive.
You also have the option of converting your loan into a flexi loan to avoid paying exuberant interest rates.
DBS Bank Flexi Loan
The flexi loan option works like an overdraft but the primary goal of this loan is to reduce the interest that you shell out towards the loan. You have the option of borrowing a loan along with a flexi account.
Now, with the Flexi Loan, you can add any surplus income into it. When the interest is calculated it month, it is calculated on the current principal minus the amount that you have accumulated in the Flexi Loan Account. This helps you save on the interest that is payable towards your loan. DBS Flexi Loan offers the following benefits:
You do not have to pay any annual fees towards the loan.
You get a Visa Infinite Debit Card along with the loan
This debit card allows you to make withdrawals both nationally and internationally.
You also get a personalized cheque book without any additional cost.
The interest rate is slightly higher when it comes to a loan against property with a flexi account. However, you will save quite a bit on the interest that you will pay towards the loan in the future.
The Flexi Loan account also acts as a great savings account for you.
Documents Required for DBS Bank Loan Against Property
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.
- For individuals: Utility Bills, Rental Agreement, Adhaar Card, Passport or Driving license.
- For Business: Utility bills, partnership deed, business registration certificate, leave and license agreement.
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:
- Salaried individuals: Bank statements for the last 6 months, salary slip for the last 6 months, 2 years IT returns and Form 16.
- Self Employed individuals: Audited financial statements, profit and loss statement and bank statements for the last 6 months.
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.
Why Apply for DBS Bank Loan Against Property Through MyMoneyMantra
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.
How to Use DBS Bank Loan Against Property Calculator
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.
Why Use DBS Bank Loan Against Property Calculator
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.
What is the maximum loan amount that I can get with DBS Bank loan against property?
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.
What if I miss an EMI payment towards the loan?
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.
How long will it take for the loan amount to be sanctioned and disbursed?
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.
What are the repayment options available for the EMI?
You have to make your payments towards the EMI through a few modes that are allowed by DBS Bank as mentioned below:
- Through an ECS Mandate,
- Standing instructions from the DBS Bank account
The borrower and the bank may agree to other modes of repayment such as collection of cheques as well.
It is necessary to have the property that is montaged insured?
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.