HSBC Bank

HSBC Bank Home Loan

Apply HSBC Bank Home Loan

About HSBC Home Loan

Born with the idea of being a local bank serving international needs, HSBC opened its doors for business in Hong Kong in March 1865. Today, it is one of the largest banking and financial services organizations in the world. In India, HSBC's origin date back to 1853.

The bank has seen tremendous growth since its inception and now offers various products and services to retail customers as well as corporate and commercial banking clients.

The bank serves more than 39 million customers today through its four global businesses: Retail Banking & Wealth Management, Commercial Banking, Global Banking & Markets, and Global Private Banking. The wide network of the bank covers 66 countries and territories in Asia, Middle East, Europe, and Africa, North America, and Latin America.

The bank understands that purchasing a house of your own is one of the most important financial decisions in people's lives across the world. Most people dream of owning a home of their own, however, achieving that dream can be quite challenging when it comes to arranging the funds required to make such an expensive purchase. However, fulfilling this dream has become easier now with HSBC Home Loans. The bank offers housing loans to salaried as well as self-employed people of Indian origin and non-resident Indians (NRI) as well.

HSBC Home Loan

Interest rate

8.45 %

Loan tenure

20 Years

Loan turnaround period

8 - 15 days

Loan to value (LTV)

Get loan up to 85% of project cost

Who can apply?

  • Self-employed professionals
  • Salaried individuals
  • Indian residents

Co-applicants

Up to 4 applicants are allowed as co-applicants

Lowest EMI

865 Per Lakh

Why HSBC Home Loan?

If you are wondering why you should avail a Home Loan from HSBC, below are some of the reasons to make this decision easier for you:

  • High loan amount: You can avail a loan amount ranging from 3 Lakhs toup to 10 Crores
  • Loans available to Resident Indians as well as NRIs
  • Loans can be obtained to fund the purchase of ready properties, HSB-approved select under construction properties, self-construction of house, and home improvement.
  • Flexible loan tenure:HSBC Home Loans are available for tenure up to 20 years (up to 25 years for salaried customers).
  • low interest rates
  • There are no pre-payment charges for Regular Home Loan and Smart Home Loan based on floating rates of interest.

Features and Benefits of HSBC Home Loan

  • Loan amount from 3 Lakhs to 10 Crores
  • Maximum tenure up to 20 years (25 years for salaried)
  • Interest rates start at 8.85% for salaried and 8.95% self-employed applicants (as on 29.04.2019)
  • Loans available for resident as well as non-resident Indians
  • Having a local co-applicant/ contact person is mandatory for NRI applicants
  • Minimum age required to apply for the loan is 21 years
  • The property must be insured against loss by fire, floods, earthquake, and any other damages with an insurance company.
  • The bank offers two types of housing loans, viz. Home Loan and Smart Home Loan
  • The Smart Home Loan account acts as a Current Account having an overdraft limit, that is equal to the amount of disbursed loan.
  • On completion of loan repayment, customers get the option to continue their Smart Home Loan account as a current account.

HSBC Home Loan Interest Rates

HSBC Home Loans come at floating rates of interest that are linked to the bank's 3-month Marginal Cost of Fund Based Lending Rate (MCLR). Any change in 3-month MCLR will impact your Home Loan interest rate, thus, impacting your Equated Monthly Instalment (EMI) and loan tenure.

The current 3-month MCLR of the bank is 8.50% (with effect from 01.04.2019). Here's the table for current HSBC Home Loan interest rates:

Type of Loan Interest Rate

Regular Home Loan

8.45% to 9.45%

Smart Home Loan

8.60% to 9.63%

* Interest rates are updated as on 01.04.2019

Types of Home Loan Offered by HSBC

HSBC offers the following types of Home Loans to its customers:

Home Loan

This regular housing loan scheme can be availed to purchase your own home at competitive interest rates. Not just house purchase, you can also avail this loan from house construction and home improvement.

Key Highlights of the Scheme

Purpose

For purchasing ready properties, HSBC- approved select, under construction properties, construction of property and improvement of an existing home.

Loan amount

3 Lakhs up to 10 Crores

Nationality of the applicant

Indians Residents as well as NRIs can apply

Profession of the applicant

Salaried and self-employed applicants, both can apply

Maximum repayment tenure

Up to 25 years for salaried customers and up to 20 years for other applicants

Insurance

Insurance of the property against loss by fire, floods, earthquake, and other damages with an insurance company is mandatory

Minimum age

21 years at the time of loan application

Maximum age

58 years (for salaried), 60 years (for public limited or government employees), and 65 (for self-employed) on the maturity of the loan

Smart Home Loan

This loan scheme enables the borrower to save on interest payment, thereby reducing the loan tenure. Your Smart Home Loan is operated via a Smart Home account which acts as a Current Account having an overdraft limit equivalent to the loan amount disbursed. You just need to put your usual savings in the Smart Home account and depending on the savings put by you in the Smart Home account, the quantum of interest paid can be reduced, thereby reducing your loan tenure.

Key Highlights of the Scheme

Purpose

For purchasing ready properties, HSBC- approved select, under construction properties, construction of property and improvement of an existing home.

Loan amount

5 Lakhs up to 10 Crores

Nationality of the applicant

Indians Residents as well as NRIs can apply

Profession of the applicant

Salaried and self-employed applicants, both can apply

Maximum repayment tenure

Up to 25 years for salaried customers and up to 20 years for other applicants

Insurance

Insurance of the property against loss by fire, floods, earthquake, and other damages with an insurance company is mandatory

Minimum age

21 years at the time of loan application

Maximum age

58 years (for salaried), 60 years (for public limited or government employees), and 65 (for self-employed) on the maturity of the loan

HSBC Home Loan Eligibility Criteria

To avail a Home Loan from HSBC, the following eligibility criteria have to be met:

  • Minimum annual net income: 5 Lakhs for salaried and 7,50,000 for self-employed
  • Minimum age of the applicant should not be below 21 years at the time of applying for the loan
  • Maximum age of the applicant should not be above 58 (for salaried), 60 (for public limited or government employees), and 65 (for self-employed) at the time of loan maturity
  • Having a local co-applicant/ contact person is mandatory for NRI applicants
  • The property must be insured against loss by fire, floods, earthquake, and any other damages with an insurance company.

Factors That Affect Your Eligibility for HSBC Home Loan

  • Income or salary of the applicant
  • Repayment capacity
  • Track record of past loan and Credit Card repayment (if any)
  • Applicant's age
  • CIBIL score: Should be 650 or above
  • Availability of an eligible co-applicant

How to Improve Your Eligibility for HSBC Loan

  • Choose a long tenure if possible to reduce the burden of EMI amount
  • Know the complete eligibility criteria set by the bank
  • Bring in a co-applicant with good income and credit score to apply for the loan
  • Prepay your existing short-term unsecured loans in full
  • Improve your credit score before applying for the loan

Documents Required for HSBC Home Loan

Common Documents for All Applicants

  • Complete and signed loan application form
  • 1 recent passport-sized photograph
  • Identity proof acceptable by the bank
  • PAN Card copy
  • Address proof:
  • Passport
  • Voter's ID
  • Driving licence
  • Society outgoing bill (from registered societies)
  • Electricity/ telephone/ water bill
  • Gas bill (for pipeline connection only)
  • Bill of property tax
  • Domicile certificate issued by Municipal Corporation mentioning address
  • Age proof
  • Income proof: ITR and Salary Slip/ Certificate
  • Letter of Authority to the bank to debit your HSBC Account each month for the EMI amount till the end of the loan tenure.
  • Title documents related to the property (as required by the bank)
  • For under construction properties, if the property is not registered at the time of sanction or loan disbursement, but is registered on completion of construction: All title documents relating to the mortgaged property have to be submitted to the bank.
  • Receipts of payment of dues made to the builder/ society/ limited company
  • Evidence that all approvals, consents, and permissions needed for availing the loan or creation of security have been obtained.
  • Evidence of a contract for the sale of the flat in favour of the borrower from the builder/ society/ limited company.
  • Fire insurance policy against the flat
  • Security documents must be stamped at your expense as per local stamp duty laws

Additional Documents for NRI Applicants

  • Salaried NRIs: Indian Passport with overseas stamps or copy of Visa/ Work Permit; Overseas salary stub & NRO/ NRE Account deposit information.
  • Merchant Navy NRIs: Proof of employment and report from the local bureau
  • Self-Employed NRIs: Bank account statement (Overseas/ NRE/ NRO), relevant operating licenses, Profit & Loss statements, etc. along with Indian Passport and VISA.

Other Products by HSBC

In addition to Home Loans, HSBC also offers the following products and services:

Credit Cards

Debit Cards

Savings Account

Basic Savings Account

Demat Account

Advance Accounts

Corporate Employee Programme

Fixed Deposit

Premier Mastercard

Premier Debit Card

Advance Platinum Card

Advance Debit Card

Smart Money

Smart Loan Against Property

Loan Against Property

Personal Loan

Retail Investment Scheme

Mutual Funds

Systematic Investment Plan

Wealth Insights

iSelect Term Plan

Titanium Plus

Smart Junior

Smart Future Income

Future Smart

Grow Smart

Insure Smart

Group Secure

Smart Suraksha

Smart Immediate Income Plan

Motor Insurance

 

Travel Insurance

Smart Health

Smart Super Health

NRE Account

NRO Account

NRE Deposit

NRO Deposit

FCNR Deposit

RFC Deposit

Inward Remittance

Outward Remittance

Liberalised Remittance Scheme

Online Baking

How to Calculate HSBC Home Loan EMI?

It is useful to calculate the equated monthly instalment (EMI) for your proposed HSBC Home Loan before applying for the loan. Doing so will help you in financial planning so that you can repay the loan in time without any default. You can also choose another product if the minimum EMI is not in your budget.

With MyMoneyMantra's online EMI Calculator, calculating EMI is a matter of just a few seconds. This tool gives you accurate EMI with a complete amortisation schedule.

Here are the steps to follow to calculate your HSBC Home Loan EMI using MyMoneyMantra's EMI Calculator:

  • Click on Financial Tools at MyMoneyMantra's home page
  • Select EMI Calculator
  • Enter the Loan Amount, Rate of Interest, and Repayment Tenure and click on the Calculate button

As soon as you click on the Calculate button, you will get the desired results.

HSBC Home Loan Processing Fees and Other Charges

HSBC Home Loans come with the following charges:

Type of Charges Details of Charges

Processing fees

  • 1% of the sanctioned loan amount or 10,000 (whichever is higher) + applicable taxes
  • The processing fee is collected in two parts:
    • 5,000 + applicable taxes have to be paid upfront with the loan application
    • The balance amount + applicable taxes have to be paid before loan disbursal

*Processing fee is non-refundable

Service tax

15% (including the Swachh Bharat Cess @0.5%)

Request for getting a copy of property documents available with the bank

500

Charges for delayed instalments

250 per instance

Penal interest on the delayed instalments

2% over & above the existing interest rate

Prepayment charges

  • For floating interest rate Home Loan and Smart Home Loan: NIL
  • For fixed interest rate Home Loan:
    • Up to 25% of the sanctioned loan amount in every financial year: NIL
    • For amount above 25% of the sanctioned loan amount in every financial year: 3% of the amount to be prepaid

Commitment fee (for Smart Home Loan)

  • Up to 1% on the amount above 25% of the SLCF/ SHCF sanctioned amount.
  • If the excess funds in the SLCF/ SHCF account are above 25% of the SLCF/ SHCF sanctioned amount, the bank may charge a commitment fee of 1% p.a. (at its sole discretion) on the outstanding balance amount maintained over & above the threshold.

Conversion fee

 

0.50% of outstanding limit or current account limit (whichever is higher) + applicable taxes

Legal charges

As per actual

HSBC Home Loan - Customer Care

You can contact the HSBC bank at the below-mentioned toll-free numbers:

  • 1800 103 4722
  • 1800 266 3456

You can also visit the nearest branch and meet their Relationship Manager.

All grievances or escalations should be marked to:

The Manager, Customer Care Centre,

The Hongkong and Shanghai Banking Corporation Limited,

Rajalakshmi, No. 5 and 7, Cathedral Road, Chennai - 600 086

HSBC Home Loan - FAQs

How can I apply for an HSBC Home Loan?

You can do any of the following to apply for the HSBC Bank Home Loan:

  • Visit any nearest HSBC India branch
  • Contact your Relationship Manager
  • Call Phone Banking number of the bank
  • Apply online on HSBC's website
  • Apply online through MyMoneyMantra

What are the minimum and maximum Home Loan amount I can avail of?

The minimum and maximum amount of loan that can be availed under HSBC Home Loans depend on the city where the property is located and property type. Here are the details:

Home Loan Amount Purpose City

5 Lakhs to 10 Crores

Purchase of ready built and under-construction

Delhi (NCR) and Mumbai

3 Lakhs to 7.5 Crores

Purchase of ready built and under-construction

Bengaluru, Pune, Chennai, Ahmedabad, Chandigarh, Hyderabad, Jaipur, and Kolkata (only ready property)

3 Lakhs to 1 Crore

Construction of property

Delhi (NCR), Mumbai, Bengaluru, Pune,

Chennai, Ahmedabad, Jaipur, Chandigarh, Hyderabad

3 Lakhs to 25 Lakhs

Home improvement

Delhi (NCR), Mumbai, Bengaluru, Pune,

Chennai, Ahmedabad, Jaipur, Chandigarh, Hyderabad , and Kolkata

How does HSBC decide interest rates on Home Loans?

After 01.04.2016, HSBC follows the Floating Interest Rate method that is linked to the bank's 3-months MCLR. Any fluctuation in MCLR will impact your housing loan interest rate. The Bank may also offer fixed interest rate loans from time to time.

Which type of charges do I need to pay when applying for the HSBC Home Loan facility?

The HSBC Home Loan facility is subject to certain fees and charges that are applicable before and after the loan disbursement. At the time of applying for the loan, you have to pay a non-refundable processing fee of 1% of the sanctioned loan amount or 10,000 (whichever is higher) + applicable taxes. The processing fee is collected in two parts, i.e.,

  • 5,000 + applicable taxes have to be paid upfront with the loan application
  • The balance amount + applicable taxes have to be paid before loan disbursal

How do I repay my HSBC Home Loan?

The repayment of HSBC Home Loan is done in EMIs through standing instructions (SI) to your HSBC account or electronic clearance system (ECS) from the company's current account.

How much time is taken for my credit to be approved?

The loan application is usually approved within 5 days post submission of complete documents.

How much time does the bank take for loan disbursal?

The loan is disbursed within 2 days post submission of duly stamped & completed loan agreement, and other required documents.

I am an NRI. How can I repay my loan?

NRI borrowers can make payment through their NRE or NRO account/ inward remittance/ liquidation of FCNR/ sales proceeds of immovable property against which the loan was granted/ any close relative's bank account.

Is property's insurance mandatory to avail HSBC Home Loan?

Yes, you have to insure your property against loss due to fire, floods, earthquake, floods and other such calamities with an insurance company, having HSBC as a beneficiary of the insurance policy.

What happens if I default my HSBC Home Loan EMI?

Make sure you pay your EMI on time each month. Defaulting of EMI will impact your credit rating and score, and will bleak your chances of getting approval for any credit from HSBC in the future. HSBC may also initiate collections and legal action for recovering their dues. In the worst case, the bank can recall the loan and any secured asset mortgaged for the loan can also be attached for recovery of dues.

HSBC Home Loan Latest News

08.04.2019: LendInvest enters the home loan market with HSBC funding worth up to 200m

Mortgage market place LendInvest is entering the regulated home loan market in India for the first time after getting up to 200 million funding from HSBC UK. LendInvest will launch their first home loan product this year, offering short-term bridging loans to homeowners for tenure up to 12 months. The Christian Faes (CEO and co-founder of LendInvest) said that this new funding from HSBC is an important step forward in the evolution of their business.

03.04.2019: HSBC witnesses a steep mortgage growth

According to the latest monthly banking statistics for February by Australian Prudential Regulation Authority's (or APRA), HSBC has witnessed the steepest growth in mortgage loan portfolio out of the non-major banks. Its owner-occupied loan book has grown by $862.2 million to $11.51 billion and investment portfolio by $381.4 million to $5.43 billion in this February. HSBC's collective growth of $1.2 billion-plus in residential home loans is above the Commonwealth Bank of Australia (CBA), the strongest performing major bank.

04.11.2018: HSBC and Reliance Industries Brussels jointly execute their first of its kind blockchain trade finance transaction

HSBC India and ING Bank Brussels have jointly executed a blockchain enabled live trade finance transaction with Reliance Industries and Tricon Energy. The Blockchain platform is integrated with Bolero's electronic Bill of Lading platform to issue as well as manage an electronic Bill of Lading allowing digitally transferring the title of goods from the sellers to the buyers in the underlying trade.

01.10.2018: HSBC CIO has been recognised among the top 100 CIOs in India

The Hongkong and Shanghai Banking Corporation Limited (HSBC) has today announced that Balasubramanian Ganesh, the Global CIO for HSBC's Retail Banking & Wealth Management business and Head of Application Development & Maintenance has been honoured with the Business Transformers Special CIO100 Award for HSBC's digital transformation project which involved utilising various facets of modern technology for enabling it to offer a variety of digitally enhanced products & services to customers.

30.07.2018: Surendra Rosha to be appointed as HSBC's CEO India

The Hongkong and Shanghai Banking Corporation Limited (HSBC) today announced that it has appointed Mr. Surendra Rosha as its new Chief Executive Officer (CEO) for HSBC India, subject to regulatory approvals. Mr. Rosha is currently serving as HSBC's Head of Financial Institutions Group for Asia-Pacific. He has extensive work experience with retail and commercial banks.

Why Apply for HSBC Home Loan on MyMoneyMantra?

Applying for HSBC Home Loan through MyMoneyMantra has several benefits including the following ones:

  • You can apply online for HSBC Home Loan easily through MyMoneyMantra
  • We help you get a Home Loan with the lowest rate of interest and minimal charges with our huge range of product offers from 70+ banks and non-banking financial companies (NBFCs).
  • Our free documents pick-up service makes documentation submission process easy and convenient for you.
  • We help you get the fastest loan turnaround time
  • All details related to each product is available on our website to help you choose the best available deal.

How to Apply for HSBC Home Loan on MyMoneyMantra?

Follow the steps given below to apply for HSBC Home Loan at MyMoneyMantra:

  • Visit our official website and click on Home Loan under Loans section
  • Enter the required details related to you, your work, loan, and the proposed property to be purchased
  • Enter the received OTP at the given space to verify your request for the loan
  • Choose HSBC Home Loan from the given options
  • Post approval of your application, our Mortgage Specialists get in touch with you to help you arrange and submit the required documents.
  • On receiving your documents, the officials of HSBC will contact you to carry on the verification process.
  • Post verification, you will receive a sanction letter/ loan agreement. You have to sign it to get the loan amount disbursed into your bank account. The disbursal may take a few days.

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