DBS Home Loan
Home Loan Bank Information
Table of Contents
- DBS Home Loan Interest Rates
- Eligibility Criteria for DBS Home Loan
- DBS Home Loan Schemes
- DBS Home Loan Types
- DBS Home Loan for NRI or PIO
- How to Apply for DBS Home Loan
- Document Checklist for DBS Home Loan
Introduction
DBS is a financial services group headquartered in Singapore catering to various banking needs across South East Asia, Greater China and South Asia spread in 18 locations. Within the short span of 50 years of its existence, they have pioneered the digital transformation of banking services. They offer home loan products categorized by them under the Mortgage Products. Presently they offer home loan solutions to only a few key centers in India:
- Mumbai
- New Delhi
- Pune
- Bengaluru
- Chennai
- Kolkata
It is obvious that the small reach of the bank, compels them to look for niche customers who aspire for a different kind of banking experience.
DBS Home Loan Interest Rates
Interest Rates are as of 2019
Whether it is the first time borrower or a repeater, investing in a dream home is seamless at DBS. They claim to offer the right solution for all the needs of homeownership that one can aspire for. The decision to invest in a dream home is a lifetime milestone, and one is wary of the financials until and unless it is worked out meticulously. The loan amount eligibility factor weighs heavily on the mind as the final outgo is impacted by the rate of interest primarily and the other fees that are levied for different reasons. The primary factor is the rate of interest. It is imperative to learn about the interest mechanism at DBS.
| The Interest Rate mechanism which has a bearing on the pricing at DBS effective from 7th July 2019 | |
|---|---|
| BASE Rate | 8.70% |
| MCLR Buckets | |
| ON | 8.70% |
| 1M | 8.70% |
| 3M | 8.65% |
| 6M | 8.65% |
| 12M or 1Y | 8.25% |
Based on these parameters, the pricing grid for home loans has been designed at DBS to cater to the primary as well as the variants.
| The Interest Rate Home Loan pricing at DBS effective from 7th July 2019 | ||
|---|---|---|
| Home Loan | 8.65% (3M MCLR) | |
| Home Loan Take Over | 8.65% (3M MCLR) | |
| Loan Amount Slab | Spread | Effective Rate |
| Any Amount (Without Flexi) | 3M MCLR + up to 0.80% | 9.45% maximum |
| Any Amount (With Flexi) | 3M MCLR + up to 0.95% | 9.60% maximum |
Eligibility Criteria for DBS Home Loan
The eligibility criteria set by DBS is quite broad encompassing a host of borrowers with diverse needs of both the resident and Non-Resident Indians. A general snapshot of the norms is enunciated below for easy comprehension of the features and limits defined by the bank.
| Eligibility criteria for DBS Home Loan | |
|---|---|
| Target Audience |
|
| Purpose |
|
| Repayment | Up to 20 years with flexibility options |
| Quantum | Rs.5C to cater to the need of higher finance |
| Loan to value |
|
| Flexibility | The interest payment is flexibly arranged where you pay only the interest component of your EMI during the construction period. |
| Security |
|
| Insurance | By the borrower against all perils |
| Eligibility criteria for DBS Refinance Home Loan | |
|---|---|
| Target Audience |
|
| Purpose |
|
| Repayment | Up to 20 years with flexibility options or linked to the tenor of the existing loan as the case may be. |
| Quantum | Depending on the requirement and estimates |
| Loan to value |
|
| Eligibility criteria for DBS Flexi Loan | |
|---|---|
| Target Audience |
|
| Type | Overdraft |
|
|
| Purpose |
Purchase / Construct a dwelling unit of your choice Purchase an under construction from an approved list of builders/developers |
| Repayment | Up to 20 years with flexibility options |
| Quantum | Rs.5C to cater to the need of higher finance |
| Loan to value |
|
| Flexibility | The interest payment is flexibly arranged where you pay only the interest component of your EMI during the construction period. |
DBS Home Loan Schemes
It is time to recapitulate and refresh your memory with the redeeming features of DBS Home Loan, especially with relation to the cost of capital. An insight into the mechanism that goes into the pricing of capital is important. It is based on the following:
- The amount of loan.
- The facility of the product offered
- Customer category
- DBS loan assessment parameters
The final pricing is always maintained in the pricing grid range defined by DBS, which is subject to change periodically on review and the rates announced by RBI.
| The Interest Rate Home Loan pricing at DBS for Quarter 2, 2019 | |
|---|---|
| Home Loan | 8.65% |
| Home Loan Take Over | 8.65% |
| Loan Amount Slab | Effective Rate |
| Any Amount (Without Flexi) | 8.80% to 9.25% |
| Any Amount (With Flexi) | 9.50% to 10% |
It is also prudent to have a glimpse at the kind of fees levied by DBS to determine the final price of capital.
| List of Charges at DBS | ||
|---|---|---|
| Processing | Rs.10000 + GST non-refundable recovered upon execution of disbursal documents | |
| Annual Fee | Nil | |
| Penal interest | 18% on the overdue amount for the default period | |
| Part-payment fees | Floating rate | Nil |
| Fixed rate | 2.50% + GST | |
| Foreclosure charges | Floating rate | Nil |
| Fixed rate | 2.00% + GST | |
DBS Home Loan Types
It is now understood that DBS offers a wide berth to its customers with a range of products and customer base comprising the salaried and the non-salaried belonging to professionals, proprietors and individual partners. Scanning the range of products now requires consolidation by summarizing the salient features of each category of home loan on offer.
Main Home Loan by DBS
DBS Home Loan: Owning a dream residence has never been as easy as with the bank. The host of purposes the bank offers its products can be summarized as:
- Ready fresh/resale accommodation purchase
- Purchase of under-construction property
- Construction of dwelling unit
- Refinance
- Easy interest options
- Affordable repayments
- Transparent transactions
- Seamless loan processing
- Digital Ecosystem
Refinance Loan: It offers the borrowers multiple options with relation to home loans. The primary among them are:
- Balance transfer of existing home loan with another financial institution at better rates of interest, reducing the EMI burden. It is subject to complying with the norms and policies of the bank.
- Consolidate all the loans of the borrower into a single loan for easy management
- Enhance the loan amount with an additional top-up to meet the need of funds for use at the choice of the borrower.
Flexi Loan: It is an interesting offer from DBS where the loan is converted into an overdraft facility. The borrower has the choice to park additional funds in the loan account that positively impacts the accrual of interest by lowering the principal. Interest is charged on the diminishing daily balance, thus mitigating the interest burden. Since the facility is overdraft, the borrower can draw the funds deposited when in need. Additionally, the bank offers a host of freebees for the use of the borrower.
- Issuance of free Visa Infinite Debit card
- Free cash withdrawal in Visa ATMs in Indian and abroad
- Personalized checkbook.
DBS Home Loan for NRI or PIO
DBS has the facility of housing loans for the benefit of NRI in select countries. In the Indian context, home loans to the NRI are covered by the guidelines framed by RBI and the regulations stipulating NRI investment in properties. Further, the NRI has to also comply with the regulations of FERA. There is no bar on an NRI owning immovable property in India, but it has to be for residence or commercial. The NRI is, however, barred from owning agricultural land or plantation.
Housing Loan for High-net-worth Individuals
The paradox with HNWI is that it varies from country to country and there is no standard yardstick to ascertain as to who fall in this class. DBS, by its very nature, extends wealth management services to its customers through some niche products. The measure of an HNWI in the Indian parlance is hazy, but still can be defined as one who is well endowed with abundant liquid assets and enough disposable income. At DBS there is no specific home loan designated for the target HNWI, but any home loan as such in their bouquet could fit the bill for the HNWI.
Amount of Loan in the Scheme
As already enunciated, there is no specific home loan for the HNWI. So the maximum under the standard home loan can be accepted as the benchmark at the maximum of Rs.5C.
DBS Home Loan for NRI
Before the home loan for the NRI is discussed, it is important to understand who one is and what does it entail. NRI is the abbreviated form of Non-Resident Indian, which suggests that he resides in a country other than India. The NRI is thus an Indian citizen holding a valid Indian Passport but earning his living outside India. An NRI might be a salaried employee of a foreign entity there, on deputation in international agencies or MNCs. The NRI may also be involved in the business in his adopted country of residence.
| Eligibility criteria for DBS NRI Home Loan | |
|---|---|
| Target Audience |
|
| Purpose | Same as for resident home loan |
| Repayment | Up to 20 years with flexibility options |
| Quantum | Rs.5C to cater to the need of higher finance |
| Loan to value | 80% of the property value for loans up to Rs.25L. It transpires into your margin of 20% for which the bank pays the remaining 80% of the cost of the property. |
| Security |
|
| Insurance | By the borrower against all perils |
How to Apply for DBS Home Loan
There are two modes by which the borrower can apply for home loan at DBS. The first is online, and the second is by visiting one of the branches in the designated city where DBS presently offers its home loan. The online process seeks inputs which are preliminarily expressing your interest in the product. Being a DBS Treasures Customer, a representative will call and guide the borrower. At DBS, there is a well-regimented timeline set for different activities. Accordingly, loan processing may take up to 15 working days to complete.
Document Checklist for DBS Home Loan
| Documents to be provided to DBS for processing of Home Loan |
|---|
| Application form complete in all respects. |
| Self-attested PP size photograph |
| Valid KYC Documents |
| Residence proof for individuals and business |
| Bank statement of at least six months |
| Salary slips/certificate or valid income proof for the self-employed |
| Form 16 for two years and ITR as the case may |
| Processing fee cheque |
| Relevant property documents |
| In addition to the above, NRI will have to submit documents |
|