DBS Home Loan EMI Calculator

DBS Bank Home Loan EMI Calculator

The Development Bank of Singapore (DBS) is a multinational Bank that was originally established in 1968 to undertake industrial development in Singapore and grew to become a major International bank in South East Asia.

The Indian division of DBS Bank has grown to cover 33 major cities in India including Mumbai, Pine. Kolkata, Delhi, Chennai, Bangalore and Chandigarh. DBS Bank provides all kinds of financial and banking services to companies, institutions, commercial establishments, MSMEs (Micro small and medium enterprises) and individuals. The retail division of DBS bank comprising the Home loans sector is the most popular and in demand section.

Building or buying a home for the first time is a proud moment in every person’s life. But this involves a lot of finances hence meticulous planning needs to be done. Almost everyone buying their own home and constructing one will have experienced the never ending debate of which type of house to go for and how much to spend. Every family needs to strike a balance between the amount of money to be spent on a home and savings. 

It is obvious that savings cannot stop or be put aside for the entire period of 20 to 25 years that a loan is being paid and this brings prospective home builders to the point that they need to determine how much loan is to be taken and how much is to be paid off every month. This monthly payoff is known as the Equated monthly instalment (EMI).

DBS Bank EMI calculator

• The best part of the EMI calculator is that this formula is preprogrammed into the calculator and users need not make lengthy calculations every time. 
• The EMI is the most important part of the home loan and borrowers often try out many different combinations and the of loan amounts with loan tenures and interest rates in order to work out the most suitable and affordable EMI for them. The EMI calculator of DBS bank is a useful tool which users, borrowers and prospective applicants use repeatedly to try out different combinations of loan amounts, interest rates and loan tenures.
• Most often, users work backwards once they obtain the best EMI for them and derive the loan amount. This, in turn, determines the type of property to be bought. The DBS EMI calculator works on the basis of the formula E= P x R (1 + R)^n/((1 + R)^(n-1)) where E is the EMI, n is the tenure in number of months, R is the monthly interest and P is the principal loan amount.
• The best part How to use the DBS Bank EMI calculator and apply for the Housing loan

How to use the DBS Bank EMI calculator and apply for a housing loan

1. Loan applicants need to do some basic financial planning before going through the process of buying, constructing, renovating or improving a Home. This also includes loans that are balance transferred from other banks or NBFCs and even top up loans.
2. The basic planning needs to include the financial impact of any kind of investment in a home. This will include distributing the gross income of the household so that there is provision to make some down payment and finance the rest with a DBS Bank loan.
3. Now is the time to use the DBS bank EMI calculator. The EMI calculator is used more by borrowers and applicants more for their own calculations rather than the bank. The EMI calculator is used to determine the approximate EMI the borrower will need to pay and the EMI depends on the interest rate, loan amount and loan tenure. Repeated calculations will show that the EMI reduces with higher tenure but the cost of the loan increases due to increased interest cost for the longer period.
4. The EMI calculator also informs users how much of the EMI is the interest component and how much is the principal. 
5. Having a good idea of the amount of EMI they may be likely to have to pay, applicants can now go ahead with the loan application process after preparing all the required documents and follow the basic tips of increasing their credit rating, choosing a good location for the property and demonstrating good clean documentation.

DBS Bank has an EMI calculator in its portal that home loan applicants and users can use in order to determine the monthly EMI on a loan. Key inputs are the loan amount and the tenure that applicants are eligible for. With the help of the DBS Bank EMI calculator, applicants can finalize their loan based on the affordability.

FAQ

Does the applicable interest rate automatically appear in the DBS Bank EMI calculator?

No. The applicable interest will need to be determined for the particular loan being selected and then entered manually. The selected loan will need to be fed in along with the loan amount and the tenure in order to obtain the EMI. The DBS bank EMI calculator is a general calculator and does a general calculation and all the variables will need to be fed in.

Will the EMI mentioned by DBS bank in the home loan agreement be the same as originally calculated by the EMI calculator?

There will be a minor difference as DBS Bank has several criteria such as Credit rating, location of property, documents and loan amount which will cause the interest rate to change. The EMI obtained from the calculator of DBS bank is only an approximate value and should not be taken as the final figure.

Can the DBS bank EMI calculator be used to calculate EMI’s after the MCLR based interest rate is reduced at a later stage?

This can be done but there are other data such as the principal loan balance and the remaining tenure need to be determined.  It is recommended that the annual statement of the loan be requested. The annual statement mentions the loan balance and the remaining tenure. These figures can be tentatively used to calculate the revised EMI. But DBS Bank may not reduce the EMI amount but reduce the number of EMI‘s. It will be better to enquire this with DBS officials and then check how the EMI is impacted.

Will the EMI once specified by DBS bank change during the course of the loan?

No. The EMI once specified cannot reduce unless there has been a loan default or an extended moratorium. The increase due to these factors will be informed to the borrower by DBS bank but even this increase will not impact the value of the EMI. The borrower may simply require to pay a few months’ extra EMI.

Does DBS Bank have an interest calculator like the EMI calculator?

DBS Bank presently does not have any interest calculator. At the moment, only very few banks and NBFC’s have an interest calculator. But these only inform how much of the EMI is interest and how much is the capital. The interest rate will need to be determined from the portal of DBS bank and then entered manually to complete the EMI calculation.