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.

You can also check the features & benefits of apply Loan Against Property without Income Proof Online.

• The Loan Against Property eligibility criteria set for DBS Bank 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.

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 9.25%. 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:

• 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.

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 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:

• 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.

• 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.

In order to ensure that you get your DBS Loan against property approved, you need to make sure that you submit all the necessary documents. The documents differ slightly when it comes to salaried and self-employed individuals.

Here is a complete checklist to make sure that you can 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.

Address Proof:

• 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.

Age Proof:

Adhaar Card, school leaving certificate, passport or any other authorized government issued certificate or ID card.

Income Proof:

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 statements and bank statements for the last 6 months.

All the necessary documents required for loan against 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.

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 Loan Against Property 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.