DBS Bank offers personal loans up to Rs. 15 lakh at an attractive interest rate starting at 10.99% p.a. These loans can be availed to meet any personal financial need including wedding expenses, home renovation, vacation, etc. However, in order to choose the right loan amount and tenure according to your need and repayment ability, it is essential that you use an EMI calculator before you actually apply for a personal loan. The article discusses various key aspects relating to DBS Bank Personal Loan EMI including its calculation method, key factors affecting EMI, payment methods and so on.
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How DBS Bank Personal Loan EMI Calculator Functions
An EMI or Equated Monthly Installment Calculator can help you calculate your EMIs that need to be paid in order to repay a personal loan. You can use the DBS Bank personal loan EMI calculator to assess the EMI payable on your personal loan even before you actually apply for it. You can also use Paisabazaar’s Personal Loan EMI Calculator. It is one such tool that helps you know the EMI that you would be paying each month if you apply for DBS Bank Personal Loan. All you need to do is to fill the loan amount, tenure and interest rate and you will instantly get to know the EMI.
Thus, an EMI calculator functions on the basis of the following 3 key parameters:
- Loan Amount: It is the principal amount that you borrow from the lender. With DBS Bank you can avail a personal loan ranging up to Rs. 15 lakh. Generally, a higher loan amount results in higher EMI payouts and vice versa.
- Loan Tenure: It refers to the time period over which you can repay your loan. You can repay your DBS Bank personal loan over a tenure ranging between 12 to 60 months. Generally, a longer tenure translates into lower EMI payouts and vice versa.
- Interest Rate: It is the rate at which interest is charged on the amount borrowed. DBS Bank personal loan interest rate starts at 10.99% p.a. Usually, an increase in the interest rate results in an increase in the EMI payout and vice versa. The method of interest calculation adopted by the lender also affects the EMI payable on your personal loan.
You can try different combinations of these loan parameters to arrive at an EMI amount that suits your budget.
Personal Loan EMI Calculation Formula
The formula used to calculate personal loan EMIs mainly depends on the interest calculation method adopted by the lender, that is, whether the lender uses the flat rate method or the reducing balance method. The two key EMI calculation methods are discussed in detail below:
- Flat Rate Method: It involves calculating interest on the entire loan principal amount. As a result, the EMI payout remains the same throughout the loan tenure. Thus, the EMI calculation formula according to this method is:
EMI by Flat Rate Method = (Principal + Interest)/ Loan Tenure in Months
For example: Mr. Jain took a loan of Rs. 15 lakh at a flat rate of interest of 15% for a period of 12 months.
Interest for year 1 = 15% per annum of Principal = 15% of Rs. 15 lakh = Rs. 2,25,000
Total interest payable over the loan tenure = Rs. 2,25,000
Monthly EMI payouts for Mr. Jain= (Rs. 15 lakh + Rs. 2,25,000)/12 = Rs. 1,43,750
- Reducing Balance Method: This method involves calculating interest only on the outstanding loan amount and not on the entire loan amount borrowed initially. Thus, the EMI payout decreases as successive EMI payments are made. It may also help you save on the overall interest payout of the loan. The EMI calculation formula as per this method is:
EMI by Reducing Balance Method = [P x (R/100) x {1+(R/100)}^N]/[{1+(R/100)}^(N-1)]
Where,
P refers to the loan principal;
R refers to the rate of interest on a monthly basis, i.e.,annual interest rate/12;
N refers to the loan tenure in months.
For example: Mr. Singh took a loan of Rs. 15 lakh at a reducing balance interest rate of 15% p.a. for a period of 12 months.
Monthly interest rate = Annual interest rate/ 12 = 15/12 = 1.25% per month
Monthly EMI payout for Mr. Vikram= [1500000 x 0.0125x (1+0.0125)^12]/(1+0.0125)^(12-1)] = Rs. 1,35,387
Monthly EMI Payment Comparison of Popular Banks in India
A comparison of the EMI payments of some popular banks in the country for varying loan amounts, tenure and interest rates is given below:
| Bank Name and Interest Rate | EMI Payout for Loan Tenure of 1 Year | ||
| Loan Amount of Rs. 1 lakh | Loan Amount of Rs. 5 lakh | Loan Amount of Rs. 10 lakh | |
| DBS Bank @ 10.99% p.a. | Rs. 8,838 | Rs. 44,188 | Rs. 88,377 |
| Axis @ 11% p.a. | Rs. 8,838 | Rs. 44,191 | Rs. 88,382 |
| Citibank @ 9.99% p.a. | Rs. 8,791 | Rs. 43,956 | Rs. 87,911 |
| ICICI @ 10.50% p.ae. | Rs. 8,815 | Rs. 44,074 | Rs. 88,149 |
| SBI @ 9.60% p.a. | Rs. 8,773 | Rs. 43,865 | Rs. 87,730 |
| HDFC @ 12.50% p.a. | Rs. 8,908 | Rs. 44,541 | Rs. 89,083 |
DBS Bank Personal Loan EMI Calculation
DBS Bank uses the reducing balance method to compute the EMI payable on its personal loans. The following table gives different possible EMIs with varying combinations of loan amount, tenure and interest rate.
| Loan Amount (Rs.) | Interest Rate (p.a.) | Tenure (months) | EMI (Rs./month) |
| 1 lakh | 11% | 12 | 8,838 |
| 2 lakh | 13% | 24 | 9,508 |
| 3 lakh | 14% | 36 | 10,253 |
| 4 lakh | 16% | 48 | 11,336 |
| 5 lakh | 18% | 60 | 12,697 |
How to Pay DBS Bank Personal Loan EMI?
DBS Bank personal loan EMIs can only be paid though digibank savings account. You simply need to make sure that your account has sufficient funds at least 2 days before the payment date and the EMI will be debited automatically. To add funds to your digibank savings account you can use NEFT/ IMPS/ RTGS/ UPI fund transfer options.
Charges Levied on Non Payment of EMI
The following charges may be levied in case DBS Bank personal loan EMIs are not paid on time:
| Particulars | Charges |
| Dishonour of Standing Instruction | Rs. 600 per instance + GST as applicable
|
| Penal Interest Charges | 24% p.a. or 2% p.m. on the overdue installment |
Factors Affecting DBS Bank Personal Loan EMI
Some key factors which affect DBS Bank personal loan EMIs are:
- Loan Amount: It is the principal amount that you borrow from DBS Bank. Generally, the EMI payout increases with an increase in the loan amount and vice versa.
- Loan Tenure: It refers to the period over which you can repay your DBS Bank personal loan. Usually, a longer tenure results in lower EMI payouts. However, it may increase the total interest payout of the loan.
- Interest Rate: It refers to the rate at which interest is charged by DBS Bank on the amount borrowed. Usually, a higher interest rate means higher EMI payouts and vice versa. Also, the interest calculation method used by the lender- whether the lender uses the flat rate or the reducing balance method, also affects the EMI payable on your personal loan. Generally, EMIs calculated using the reducing balance method are slightly lower as compared to those calculated using the flat rate method and may help you save on the total interest payout of the loan.
FAQs
Q1. Can I pay my DBS Bank personal loan EMIs using cash/ cheque?
No. You can only pay your DBS Bank personal loan EMIs using your digibank savings account. You can however add funds to your account using RTGS / NEFT / IMPS / UPI funds transfer options.
Q2. What is the maximum number of EMIs in which I can repay my DBS Bank personal loan?
DBS Bank personal loans come with a flexible repayment tenure ranging between 12 to 60 months. Thus, you can repay your personal loan in a maximum of 60 EMIs.
Q3. Can I prepay my personal loan?
Yes, you can prepay your DBS Bank personal loan once you have paid at least 12 EMIs along with the applicable prepayment charges.