HSBC Home Loan

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.

Interest rate6.64%
Loan tenure25 Years
Loan turnaround period8 - 15 days
Loan to value (LTV)Get loan up to 85% of project cost
Co-applicantsUp to 4 applicants are allowed as co-applicants
Lowest EMI684 Per Lakh

Also Read - 7 Best Home Loans for Pensioners

Features and Benefits of HSBC Home Loan

  • HSBC home Loan Interest rates start at 7.20% for salaried and 7.30% self-employed applicants.
  • Loan amount from 3 Lakhs to 10 Crores
  • Maximum tenure up to 20 years (25 years for salaried)
  • 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 home 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.

Tip - Check Cibil Score before applying for a Home 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

Also Read - Home Loan Eligibility Criteria Varies by Your Employment Type

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.

Here's the table for current HSBC Home Loan interest rates:

Type of LoanInterest Rate
Regular Home Loan7.20% to 7.30%
Smart Home Loan7.35% to 7.45%

* Interest rates are updated as on 01.04.2019

Also Read - Tax Benefits on the Second Home 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.

Also Read - Home Loan Disbursement Process

HSBC Home Loan Processing Fees and Other Charges

HSBC Home Loans come with the following charges:

Type of ChargesDetails 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 tax15% (including the Swachh Bharat Cess @0.5%)
Request for getting a copy of property documents available with the bank500
Charges for delayed instalments250 per instance
Penal interest on the delayed instalments2% 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 chargesAs per actual

Also Read - 25 Lakh Home Loan EMI Interest Rate

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

PurposeFor purchasing ready properties, HSBC- approved select, under construction properties, construction of property and improvement of an existing home.
Loan amount3 Lakhs up to 10 Crores
Nationality of the applicantIndians Residents as well as NRIs can apply
Profession of the applicantSalaried and self-employed applicants, both can apply
Maximum repayment tenureUp to 25 years for salaried customers and up to 20 years for other applicants
InsuranceInsurance of the property against loss by fire, floods, earthquake, and other damages with an insurance company  is mandatory
Minimum age21 years at the time of loan application
Maximum age58 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

PurposeFor purchasing ready properties, HSBC- approved select, under construction properties, construction of property and improvement of an existing home.
Loan amount5 Lakhs up to 10 Crores
Nationality of the applicantIndians Residents as well as NRIs can apply
Profession of the applicantSalaried and self-employed applicants, both can apply
Maximum repayment tenureUp to 25 years for salaried customers and up to 20 years for other applicants
InsuranceInsurance of the property against loss by fire, floods, earthquake, and other damages with an insurance company  is mandatory
Minimum age21 years at the time of loan application
Maximum age58 years (for salaried), 60 years (for public limited or government employees), and 65 (for self-employed) on the maturity of the loan

Check Interest Rate for 25 lakh home loan EMI and apply ease on MyMoneyMantra.

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.

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 to up 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.

Also Read - The Evolution of Home Loans in India

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

Also Read - Home Loan Tax Benefits

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Best Value Home Loans

MyMoneyMantra is India’s largest phygital loan distributor. With trust of 70 lakh customers, we assure hassle free access to the best Home Loans up to 10 crore for housing loan borrowers in India. Our service is 100% free. We use latest technology and AI to serve customers across the length & breadth of our diverse country. Check Eligibility & Apply.

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 AmountPurposeCity
5 Lakhs to 10 CroresPurchase of ready built and under-constructionDelhi (NCR) and Mumbai
3 Lakhs to 7.5 CroresPurchase of ready built and under-constructionBengaluru, Pune, Chennai, Ahmedabad, Chandigarh, Hyderabad, Jaipur, and Kolkata (only ready property)
3 Lakhs to 1 CroreConstruction of property

Delhi (NCR), Mumbai, Bengaluru, Pune,

Chennai, Ahmedabad, Jaipur, Chandigarh, Hyderabad

3 Lakhs to 25 LakhsHome improvement

Delhi (NCR), Mumbai, Bengaluru, Pune,

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

✅ How does HSBC decide interest rates on Home Loans?

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.