DBS Home Loan Interest Rates
Home Loan Bank Information
DBS Bank Home Loans Interest Rate
The Development Bank of Singapore (DBS) was set up in Singapore in 1968 with the objective of doing industrial financing which was until then being done by the Economic Development Board of Singapore. The name changed over to DBS Bank in the year 2003.
DBS India is headquartered in Mumbai and has 33 branches scattered across the country in major cities such as Delhi, Kolkata, Bangalore, and Chennai. The Laxmi Vilas Bank has recently been merged with DBS bank.
DBS Bank offers world class financial services which includes Home loans in its retail sector. The Home loans include loans for purchase of under construction property, fresh or resale accommodate purchase and refinancing.
Interest rates for DBS bank home loans
The interest rate has an effect of the pricing by DBS Bank. This is known as the MCLR (Marginal Cost Lending Rate). The MCLR rates for period are as follows starting from the base rate of 8.7%.
| Period | Rate of interest |
|---|---|
| 1 month | 8.70% |
| 3 months | 8.65% |
| 6 months | 8.65% |
| 1 year | 8.25% |
The interest has been calculated, taking the 3 month MCLR
| Home Loan | 8.65% (3 months MCLR) | |
| Home loan takeover | 8.65% (3 months MCLR) | |
| Loan amount | Total range for interest | Effective rate of interest |
| Any amount (without flexi) | 3 months MCLR + up to 0.8% | 9.45% |
| Any amount including flexi | 3 months MCLR + up to 0.95% | 9.60% |
Steps to be taken by applicants to reduce interest
- The first and foremost criterion is a high credit rating that can be done by clearing past loans, debts and liabilities that can reduce the CIBIL score. All banks prefer loan applicants to have a high CIBIL score of at least 750.
- The next important criterion is to select the location of property in a prime urban centre where real estate is in high demand and where there are excellent amenities. These are residential complexes by reputed builders and developers where property prices rise sharply. DBS Bank prefers mortgaged property to be in a location where it can be resold easily in case of loan default.
- Like most banks and NBFCs, DBS banks prefer loan applicants to be employed with reputed companies with a stable salary and business persons to have a profitable business with an excellent track record. These are points that applicants can use to reduce the interest rates on their home loans.
DBS Bank Home Loan Processing Charges
The maximum processing fee charged by DBS bank is INR 10,000. The amount is refundable and has to be paid at the time of applying for the loan. In addition to this, DBS bank levies additional charges which are payable by the borrower after the approval of the loan application.
DBS Bank is a multinational bank with a wide presence in Indian and provides several types of banking and financial services. Their home loans division is one of the most popular.
Applicants need to prepare their plan and budget for a home and decide how much to pay as direct payment and how much to finance. After checking their eligibility for loan amount and checking the EMI they are likely to pay, applicants can fill the DBS Bank home loan application.
A visit to DBS bank will be helpful at this stage for a discussion with the Bank officials where useful inputs from the bank officials will benefit the applicants and help them restructure the loan application for a more suitable payment structure.
Applicants will need to prepare their documents from the large document checklist and also improve their credit rating as well as select property in a prime area to be able to negotiate lower interest rates with DBS Bank. The Bank provides a flexi facility to be added with overdraft facility in the loan account.
The applicants will get to sign the loan agreement and start work on fulfilling their dream of owning a home.
FAQs
Is the Refinance loan of DBS bank the equivalent of a balance transfer loan?
The Refinance Home loan from DBS Bank is not just a balance transfer loan but is combined into a single loan by adding smaller loans already taken by the applicant and a top up equivalent is also added to serve the needs of an applicant in case there are some extra expenses due to additional work including improvement of the home to be done.
Can an NRI residing in Singapore apply for a home loan for leasing an apartment in Singapore?
This should not be a problem. The NRI can directly apply to a DBS bank branch in Singapore and apply for a loan. The interest rates are likely to be different and there may also be some changes in the documentation as per the banking laws in Singapore.
Does the flexI loan facility of DBS Bank have flexible interest rates?
The Flexi loan facility of DBS bank allows overdraft facility allowing loan borrowers to deposit funds into the loan account. They are issued free debit cards and can even draw overdrafts from the account. The deposit of extra funds accrues interest and lowers the capital. Interest is charged on the basis of the diminishing balance method and the interest burden of the home loan reduces.
Does the DBS Bank use the repo rate for calculation of interest on its home loans?
No. DBS Bank uses only its own cost of lending known as the MLCR for calculating interest on its home loans. The bank has a flexi system but it is for overdraft facility only. The base rate of MLCR is 8.70%.
What is the maximum Home loan amount given by DBS Bank?
The maximum loan amount given by DBS Bank is Rs 5 crores for all categories of home loans except the Home loan for high net worth individuals. The criteria for high net worth individuals is not fixed in India and loan amounts in this category depend upon the capacity of the applicants to pay back the amount. A higher loan amount is usually sanctioned in the High Net worth Individual home loan category by DBS Band because of the high amount of property or assets usually mortgaged by such applicants.