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Calculate HSBC Bank Home Loan EMI

50000020000000
120
130
Total Payments-

₹5,000,000

Total Interest-
₹0
Principal Amount-
₹5,000,000
Total EMI

₹0

View Details
  • Loan Amount
  • Interest Rate
  • Your EMI
  • Tenure
  • ₹5,000,000
  • 6.49%
  • ₹0
  • 25
Updated:

HSBC Bank Home Loan EMI Calculator

HSBC Bank listed as the world's largest organization in the banking sector operates in 65 countries across the globe and the clientele base is over 40 million. The Bank offers services for both Commercial and Retail Sectors.

Various commercial and retail lending products are offered and they offer services to the MSME Sector also. Home loans are one of the most popular retail lending products of HSBC Bank.

The Bank offers two types of home loans. Regular Home Loan and Smart Home Loan. Smart Loans can be opted by customers who intend to make ongoing pre-payments to reduce the cost of the loan.

Additional Info: Apply SBI MaxGain Home Loan @6.70%

What is an EMI?

Equated Monthly Instalment consists of both the principal and the interest component. It is a specific amount that has to be paid monthly on a specific date to the loan provider by the borrower till the entire loan is cleared. The EMI will be first adjusted towards the interest component and the remaining will be adjusted towards the principal component. The interest component will be higher in the initial period as the outstanding principal balance also will be high. As the balance keeps reducing the interest also keeps reducing and so does the outstanding balance since a higher portion will be adjusted towards the principal as the period progresses. EMI is derived based on the loan amount, loan tenure and the rate of interest on home loan. Since the rate of interest plays a very significant role in determining the EMI you should compare the offers of various loan providers and choose the most economical one.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

Features of HSBC Bank Home Loan

HSBC Bank Home Loans provide loan for the construction of a house and for the purchase of a house/flat and also for the purchase of select under-construction properties under projects that are approved by the Bank. The Bank provides a Regular Home Loan that is similar to a term loan and a Smart Home Loan wherein an overdraft to the extent of the sanctioned home loan will be set to the account which performs like a current account.

Product NameEligibilityQuantumInterestRepaymentSecurityCharges
HSBC Home Loan

Both Indian Residents and NRIs are eligible.

Salaried individuals, self-employed individuals/

professionals and businessmen are eligible.

Age between 21 years to 58 years.

Upper age limit 60 years for those employed with Government Organisations/

MNCs/Reputed Companies. For the self-employed the upper age limit is 65 years.

Minimum net annual income for the salaried is 5,00,000/- and for the self-employed, it is 750000/-.

Cibil score above 700.

Between 3/- lakhs and 10/- Crores8.65% p.a. (floating) for the salaried and 8.75% p.a. (floating) for the self-employed.Maximum repaymemnt period of 25 years for the salaried and 20 years for the others

EMT of the property acquired out of the loan.

If loan is availed by an NRI co-obligation or contact of a local person is required.

Processing charges: @ 1% of the loan amount with a minimum of 10000/-. 5000/- collected a the time of accepting the applicationand 5000/- at the time of disbursement.

Pre-payment charges: No charges if availed by individuals at a floating rate of interest.

For loans availed at a fixed rate of interest no pre-payment charges if the pre-paid amount is less than 25% of the outstanding balance. If the pre-paid amount is more than 25% of the outstanding balance a pre-payment charge at 3% of the pre-paid amount will be collected.

If the loan is availed at a semi-fixed rate, pre-payment charges will be collected till the fixed-rate tenure and thereafter no pre-payment charges.

HSBC Smart Home LoanBetween 5/- lakhs to 10 Crores

8.80% p.a. for the salaried and 8.90% p.a. for the self-employed if there is a commitment fee.

9.20% p.a. for the salaried and 9.30% for the self-employed if there is no commitment fee.

No fixed rate provision.

Additional Info: Looking for 10 Lakh Home Loan? Check EMI & Apply.

EMI for HSBC Bank Home Loan

The lowest EMI as on date is 631/- per lakh for HSBC Bank Home Loan @ 6.49%p.a.

The rate of interest for HSBC Bank Home Loans ranges between 6.49% to 6.59% for a Regular Home Loan and between 8.80% to 8.90% for a Smart Home Loan with commitment fee and between 9.20% to 9.30% for a Smart Loan without commitment fee.

EMI for a loan at 6.49% p.a. interest.

Loan amount5 years10 years20 years25 years
3,00,0006177.003744.002632.002446.00
5,00,00010294.006239.004387.004076.00
2,00,00,000411778.00249579.00175468.00163072.00
5,00,00,0001029445.00623947.00438670.00407680.00

Additional Info: Also Check LRD Loan

What is an EMI calculator?

EMI calculator is a financial device that enables calculation of EMI in a very simple and easy way.

The rate of interest is of two types. A flat rate of interest and interest on reducing balance. To calculate EMI for a flat rate of interest the principal amount and the interest for the entire tenure have to summed up and divided by the total number of months (as per loan tenure). For calculating the EMI on reducing balance the following formula has to be applied.

P*r* (1+r) ^n/([(1+r) ^n]-1)

P stands for Principal

R stands for rate of interest

N stands for the loan tenure

Calculating the EMI applying the above formula manually can be very confusing, complex and time-consuming. While trying various combinations and permutations to arrive at the desired EMI you may miss out on some aspect and the end result will turn out inaccurate and you will be making the wrong choice of home loan.

To avoid the above confusion you can use an Home Loan EMI calculator which will give a 100% accurate result on providing the loan amount, loan tenure and rate of interest that you have ultimately decided after doing research on the offers available in the market.

Additional Info: Best Home Loan Interest Rates @6.70%

Factors that affect the EMI

Each variable that constitutes the calculation of EMI has a different impact on the EMI.

Loan Amount: By deciding the loan amount after assessing the contribution you can make you can arrive at the EMI. If the margin you can provide is lower, then the rate of interest will be high and with the increased loan quantum and the rate of interest, the EMI will obviously  be high. By providing a higher margin you will be saving on the interest cost since the rate of interest will be low if your contribution is high.

Fluctuation in interest: The rate of interest is bound to change whether it is a floating rate of interest, a fixed rate of interest or a semi-fixed rate of interest. In a floating rate, the change may be periodical throughout the tenure. With a fixed-rate and semi-fixed rate, it will change after a certain period. With the change in the interest the EMI will also change.

Loan tenure: EMI can be either high or low depending on the loan tenure. If you choose a longer tenure, then the EMI will be high and if the tenure is low then the EMI will be low.

Pre-payment: With pre-payments, the outstanding principal balance will reduce and resetting the EMI will also reduce depending on the outstanding balance.

Step-up and step-down EMI: Step-up EMI which increases as the period progresses is ideal for borrowers who are in the productive age group since they expect a rise in income as per their seniority. Step-down EMI which decreases as the tenure progresses is ideal for customers who are in the last leg of their career.

Additional Info: Also check Pan Number for Banks

Tips to decide the right EMI

You will have to consider a few things for deciding the right EMI:

Plan your EMI: EMI is a commitment that you will have to regularly keep up. A home loan EMI is a long-term commitment and it can take up the major portion of your monthly income. Planning your EMI before applying for the loan in order to make the right choice is very essential.
LTV Ratio: Home loans will essentially be a percentage of the market value of the property you intend to acquire. It can range from 70% to 90%. The higher the LTV, the higher will be the rate of interest. Bringing in a higher amount of margin will enable you to get the home loan at a lower rate of interest which will reduce the cost of the loan.
FOIR: Fixed Obligation to Income Ratio is the ratio between the current financial obligation along with the proposed EMI to your monthly income. The FOIR should be kept below 50% generally to be eligible for a loan. So while arriving at the EMI this aspect should be considered.

Additional Info: Also check ICICI Home Loan EMI Calculator

Change in EMI with a change in interest rates

Rate of interest will undergo a change whether it is a floating rate, a fixed rate or a semi-fixed rate. The only difference is that in a floating rate of interest the rate keeps changing every time the RBI changes the bank rate. With a fixed-rate of interest and semi-fixed rate, the rate of interest will change after a certain period when it is reset as per the prevailing rate.

Every time the rate of interest changes, the EMI will change. The change could be positive or negative.

Additional Info: Looking for 25 Lakh Home Loan? Check EMI & Apply.

Change in EMI with pre-payment

Pre-payments made along with the regular EMI will bring down the outstanding principal on the loan. The EMI will reduce if an option is given for resetting the EMI. Otherwise, the tenure will come down. If you are able to service the present EMI, then opting for a tenure change will be ideal to reduce the cost of the loan.

Additional Info: Also check SBI Home Loan EMI Calculator

Amortization Table

YearOpening BalanceAmount paid by customer (EMI*12)Interest paid during the yearPrincipal paid during the yearClosing Balance

HSBC Bank Home Loan EMI Calculator FAQs

What are the types of home loans provided by HSBC?

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There are two types of home loans. Regular home loan and a Smart Home Loan. A regular home loan is similar to a term loan whereas in the case of a Smart Home Loan the account will be operated through a Smart Home Current Account for which an overdraft limit will be set to the extent of the home loan sanctioned.

The advantage of Smart Home Loan is you can credit the surplus amount available to the account instead of parking it in a savings bank account. Since the interest is calculated on reducing balance, you can manage the interest cost by making periodical credits to the account.

Who can apply for HSBC Home Loans?

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Both Resident Indians and NRIs can apply for the Home Loan. Salaried individuals, self-employed individuals/professionals, and businessmen can apply for the home loan.

What are the pre-payment charges for HSBC Home Loans?

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There are no pre-payment charges for a loan availed at a floating rate of interest. If the pre-payment made for the home loan availed at  fixed-rate is below 25% of the outstanding princi[pal balance, there are no pre-payment charges. If the pre-payment made is above 25% of the outstanding balance at pre-payment charge at 3% of the pre-paid amount will be collected.

In the case of a loan at a semi-fixed rate, for the fixed-rate tenure, the pre-payment charges as collected for the fixed-rate loan will apply. On conversion to floating rate, there will be no charges.

What are the processing charges collected for HSBC Home Loan?

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Processing charge at 1% of the loan amount with a minimum of  10,000/- will be charged.  5000/- will becollected at the time of accepting the application and  5000/- at the time of disbursement.

How does the balance transfer EMI calculator work?

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The balance transfer calculator will calculate the savings made on the interest cost on transferring the loan to a lender providing the loan at a lower rate of interest. It also takes into account the charges that are applicable for such balance transfer i.e., the pre-payment charges of the existing lender and the processing charges of the new lender.