About HSBC Loan Against Property
HSBC is one of the largest banking and financial services organisations is serving numerable customers through Retail Banking and Wealth Management, Global Banking and Markets, Commercial Banking, and Global Private Banking. They are at present operating in 65 countries and territories.
Their origin of HSBC in India is 160 years old and was a result of taking over of Mercantile Bank of India in the year 1959. The Mercantile Bank of India was established in the year 1953 at Mumbai. Ever since the bank has contributed immensely to the development of the Indian Banking Industry and gave the first ATM to India in 1987.
The bank offers various retail and corporate sector products with flexible terms and conditions. The HSBC Loan Against Property is one of the products devised to cater to the requirement of the retail, corporate and the MSME Sector.
Eligibility for HSBC Loan Against Property
- The minimum entry age is 21 years.
- The maximum age at the time of maturity of the loan is 58 years for the salaried. The maximum age for individuals employed with Government Organizations/PSUs is 60 years and for the self-employed, it is 65 years.
- The minimum net annual income for the salaried is 5.00 lakhs and for the self-employed it is 7.50 lakhs.
Interest and other charges for HSBC Loan Against Property
The rate of interest for Loan Against Property is 9.50% p.a.
The rate of interest for Smart Loan Against Property is 9.65% p.a. with commitment fee and 9.90% p.a. without commitment fee.
Type of charge
1% of the loan amount with a minimum of 10000/-. 5000/- will be collected 1at the time of accepting the application and the balance will be collected before disbursal. Processing charges collected is not refundable.
Pre-payment is allowed only after 6 months from the date of the first disbursement of the loan. No pre-payment charges for a loan availed of at a floating rate. If the fixed-rate loan is converted to a floating rate, then the pre-payment charges are applicable only till the fixed-rate tenure.
For a pre-payment up to 25% of the loan amount sanctioned in a financial year, there will be no charges.
For a pre-payment above 25% of the loan amount sanctioned a pre-payment charge at 3% of the amount pre-paid will be collected.
No pre-payment charges for Smart Loan Against Property
Issuing copy of documents
For dishonour of cheque
250/- per instance
For delayed payment
2% over and above the regular interest on the overdue amount for the overdue period.
The conversion from MCLR/Base Rate/Retail Lending Rate to RLLR can be done with a one-time conversion fee of 5000/- plus the applicable tax.
This is applicable only to Smart Loan Against Property. The fee is collected at 1% on the amount above 25% of Smart Loan Against Property with a commitment fee sanctioned amount. If the excess amount in the Smart Loan Against Property account is above 25% of the Smart Loan Against Property with commitment fee sanctioned amount, the sanctioning authority has the discretion to collect a commitment fee at 1% on the balance amount over and above the threshold limit.
Stamp duty and legal charges
Processing charges and Security for HSBC Loan Against Property
Processing charges at 1% of the loan amount with a minimum of 10000/-. 5000/- to be paid at the time of submitting the application and the balance to be paid before disbursement of the loan.
Equitable mortgage of the property against which the loan will be granted.
Types of HSBC Loan Against Property
The following are the types of HSBC Loan Against Property:
- Loan Against Property
- Smart Loan Against Property
Features of HSBC Loan Against Property
|Name of the product||Purpose||Quantum||Interest||Security||Repayment||Charges|
Loan against property
The loan can be used for either personal requirements like higher education, wedding expenses, medical expenses, repayment of other dues, planning a vacation or for business requirements like business expansion, building infrastructure etc.
minimum loan of 3.00 lakhs and a maximum loan of 10.00 Crores will be provided. The loan will be provided as a term loan only.
The rate of interest will be 9.50% p.a.
Equitable mortgage of the property against which the loan will be given.
The maximum repayment period is 15 years
At 1% of the loan amount with a minimum of 10000/-
No pre-payment charges for a loan with a floating rate of interest.
For a loan with a fixed rate no pre-payment charges for a pre-payment up to 25% of the outstanding loan amount. Such pre-payments are allowed only once in a financial year.
If pre-payment is above 25% of the outstanding loan amount or done more than once in a financial year a pre-payment charge at 4% of the pre-paid amount will be collected.
Smart Loan Against Property
The loan will be granted in the form of an overdraft facility for working capital requirements of the business or for any other personal requirement.
The loan account will through a Smart Loan Against Property account which is like a current account and will be fixed with an overdraft limit equivalent to the sanctioned amount. This arrangement will facilitate in managing the interest cost of the loan since the interest will be charged on the day to day outstanding balance in the account. Any credits that come into the account will be again available for utilisation like any overdraft account.
The maximum limit will be up to 10.00 Crores
The rate of interest will be 9.65% for Smart Loan Against Property with commitment fee and 9.90% for Smart Loan Against Property without commitment charges
Equitable mortgage of the property against which the loan will be given.
The maximum tenure is 15 years with a review every year
Advantage of availing HSBC Loan Against Property
The advantage of availing HSBC Loan Against Property is:
- Simple documentation.
- Quick approval
- Competitive rate of interest
- A loan up to 10.00 Crores.
- Flexible repayment period up to 15 years.
- Transparency in the charges and fees collected.
- Hassle-free loan process.
- A loan will be granted against residential property.
Documents required for HSBC Loan Against Property
The following are the documents required for HSBC Loan Against Property. The documents have to be self-attested.
Proof of present Residence Address (anyone)
- Voter's ID Card
- Aadhar Card
- Society outgoing bill (only registered society)
- Electricity Bill
- Gas Bill
- Property Tax Paid Receipt.
- Domicile Certificate with age (issued by Municipal Corporation)
Photo ID Proof (anyone)
- Permanent Driving Licence
- Pan Card
- Voter's ID
- Pan Card
- Valid Driving Licence
Income Proof for Salaried Individuals
- Salary slips of the last 3 months showing salary credit
- Bank Statement of salary account for the last 3 months showing 3 salary credits.
Income Proof for self-employed individuals
- Audited financial statements like balance sheet and P & L Account for the last 2 years.
- IT returns with acknowledgement for the last 2 years.
- Bank statement of the primary account for the last 6 months.
- Partnership deed for Partnership Firms.
- Shareholding pattern, MOA, AOA attested by a Chartered Account and the List of Directors required for a Private Limited Company.
- Copy of Qualification Certificate for professionals like Doctors, Engineer, Chartered Accountant, etc.
Income Proof for NRI-Salaried
- Copy of Indian passport that is valid with visa stamping or copy of foreign passport/any other equivalent document.
- Copy of valid work permit/visa/equivalent document proving the NRI status of the applicant.
- Latest salary certificate/wage slips/contract copy proving the source of income.
- 3 months' bank account statement of overseas account with salary credits.
- Credit bureau report of the country where the applicant is located.
Income proof for applicants working in Merchant Navy
- Contract copy (latest). If posted on homeport for more than 6 months in the current year, then a copy of the future contract has to be submitted.
- Continuous Discharge Certificate (latest) for employment proof for 3 years.
- Proof of identity by way of a copy of Passport
- Operative bank account statement for the last 3 months.
- Credit Bureau report of the country where the applicant is located.
Income proof for NRI- self-employed
- Trade licence or any other comparable document
- Audited balance sheet and P & L Account for the last 3 years.
- ITwith computation of income for the last 3 years.
- Profile of the applicant in brief in the prescribed format.
- Valid passport with visa stamping.
- Credit bureau report of the country where the applicant is located.
- Bank account statement of overseas account for the last 6 months.
Copies of all the property documents required to prove a marketable title.
Why apply for HSBC Loan Against Property through MyMoneyMantra?
MyMoneyMantra is an online marketplace where the borrowers and lenders can relate. With just a few clicks you can compare the best deals available in the market and choose the deal most appropriate for you. They offer assistance throughout the loan availing process. Through their financial tools and online presence, they help customers to understand the financial terms and simplify the calculations. They have collaborated with several banks and financial institutions in order to make the loan availing journey a less turbulent one for their customers. The efficient team of MyMoneyMantra will guide you regarding the features of the product you are interested in. They will help you with the documentation and will liaison with the loan provider of your choice for a quick approval and will remain with you till the disbursement of the loan. They work 24 x 7 to ensure quick approval and disbursal. They even offer a doorstep service. The representative of MyMoneyMantra will collect the document from your doorstep and will hand over the same to the loan provider.
If you are a busy person or you are not very conversant with the nuances of a loan procedure, you should avail the services of MyMoneyMantra by applying for a loan through them. The whole loan process will be made seamless and hassle-free. All the services mentioned above are offered free of cost.
One other advantage is the availability of the EMI calculator on the website. With various deals available on the website on a single screen, it will be convenient for you to do the calculation of EMI multiple times until you arrive at the desired EMI. The team will also assist you to choose the best deal as per your requirements and income.
How to use MyMoneyMantra Loan Against Property EMI Calculator?
Loans have become a vital part of everyone's life. The loan could be for any personal need or specifically for the purchase of a car, consumer goods or for the higher education of your children. Every time you avail of a loan it is essential to calculate the EMI for the desired amount. EMI is a fixed amount that a borrower has to pay his loan provider every month for the pre-decided tenure. But before availing the loan you should be able to decide on the amount that you can afford to pay towards the loan constantly for several months without fail. If you evade this aspect, you might end up taking a burden that you will be unable to handle over a period of time due to unexpected additional expenses and you will be in a financial mess.
To avoid a situation like this it is better to calculate the EMI for the desired amount beforehand. This calculation for a loan on reducing balance involves exponents and so manual calculation will be cumbersome and may give rise to errors. The best way to do this calculation is to use an EMI calculator that is available on the website of the loan provider or on the website of loan aggregators like MyMoneyMantra. The advantage of using the MyMoneyMantra EMI calculator is the availability of a list of best deals on a single screen. To use the MyMoneyMantra calculator you will have to follow a few simple steps.
- Access the website of MyMoneyMantra.
- Choose the EMI calculator under the financial tool tab on the home page.
- Give the details of the loan amount, loan tenure and the rate of interest.
- The EMI will be calculated immediately.
- Calculate the EMI using different combinations as per the best deals available on the website.
- After deciding the EMI and the loan provider, apply for the loan through MyMoneyMantra and avail of the services of their loan experts.
Why use Loan Against Property EMI Calculator?
EMI calculator is a financial tool devised to make the EMI calculation simple. To calculate the EMI manually or by using an excel spreadsheet is not that simple. Exponents are involved in calculating the EMI for a loan with an interest on reducing balance. It will be complicated and cumbersome and not to mention time-consuming. If you ought to make the calculation simple, use the EMI calculator.
All you need to do is provide the three variants i.e., the loan amount, loan tenure and the rate of interest and the EMI are ready in no time. You can do the calculations any number of times without any loss of time. By calculating the EMI beforehand, you will be able to plan your monthly budget so that you will not miss out on EMIs during the course of the repayment tenure. Moreover, you will get a 100% accurate value with the EMI calculator and so your planning cannot go wrong.
What is the time span for HSBC Loan Against Property credit approval?
The time taken for the processing of the loan application will be 5 days on submitting the complete set of documents required.
It takes 5 days for the legal scrutiny of the documents and the valuation of the property. The time taken for legal scrutiny varies from state to state.
The loan processing (i.e., the post-approval process) will take a minimum of 4 days of submitting all the required documents.
The loan disbursal will be done within 2 days from the date of submitting the completed and duly stamped agreement and other necessary documents.
The overall time taken for the credit approval will be around 16 days.
What are the repayment options for HSBC Loan Against Property availed by an NRI?
The repayment can be by way of debit to NRE/NRO account, liquidation of FCNR deposit, by debit to the bank account of a close relative. It can also be through foreign inward remittance.
What are the charges collected for HSBC Loan Against Property?
The following charges are collected for HSBC Loan Against Property
Processing charges: Processing charges will be collected at 1% of the loan amount with a minimum of 10000/-. 5000/- should be paid at the time of submitting the application and the balance before the disbursal of the loan.
Conversion charges: The conversion from MCLR/Base Rate/Retail Lending Rate to RLLR can be done with a one-time conversion fee of 5000/- plus the applicable tax.
Commitment fee: This is applicable only for Smart Loan Against Property where an overdraft facility is provided. The fee is collected at 1% on the amount above 25% of Smart Loan Against Property with a commitment fee sanctioned amount. If the excess amount in the Smart Loan Against Property account is above 25% of the Smart Loan Against Property with commitment fee sanctioned amount, the sanctioning authority has the discretion to collect a commitment fee at 1% on the balance amount over and above the threshold limit.
Pre-payment charges: No prepayment charges will be collected for a loan availed at a floating rate of interest. If a conversion is opted from a fixed-rate to a floating rate, pre-payment charges will be applicable only for the fixed-rate period and there will be no charges for pre-payment done during the floating rate tenure. The pre-payment is permitted only after 6 months from the date of the first disbursement of the loan.
For a loan at a fixed rate of interest, no pre-payment charges will be collected if the pre-payment made is below 25% of the outstanding balance in the account. Such pre-payments are allowed only once in a financial year. If the pre-payment made is above 25% of the outstanding balance in the account or done more than once in a year, a pre-payment charge at 4% of the pre-paid amount will be collected.
What is the procedure for the pre-payment to be made to HSBC Loan Against Property?
For making pre-payments to the HSBC Loan Against Property account, a written request for making the pre-payment with an instruction to either reduce the EMI or reduce the tenure has to be given. If no instructions are given, the bank will as per the practice reduce the tenure of the loan according to the pre-payment amount received. If credit in excess is received to the Smart Loan Against Property account without any instruction, the excess amount will impact on the outstanding balance in the Smart Loan Against Property account. Any excess amount received to the Smart Loan Against Property account will be adjusted to the principal amount only.
What are the additional benefits given to customers who avail of HSBC Loan Against Property?
The special benefits to customers who avail of HSBC Loan Against Property are:
- The repayment to the loan account can be by way of auto-debit to the Savings Bank Account at the bank. Such Savings Bank Account will be opened without a minimum balance stipulation during the loan tenure.
- Unlimited free access to HSBC ATMs across the country along with 5 free transactions in other bank ATMs.
- Purchase limit of 40000/- at Merchant Establishments and withdrawal facility up to 25000/- at HSBC ATMs.
- Free access to Phone and Internet banking services.
If the loan amount is above 30.00 lakhs the benefits of HSBC Advance will be provided without having to maintain a minimum balance in the account till the maturity of the loan.
The benefits of HSBC Advance are:
- Withdrawal limits of 1.00 lakh per day along with unlimited access to Visa ATM in the country for HSBC Advance Platinum Debit Card.
- Dedicated round the clock service and all through the week Phone Banking facility.
- Will be assisted for opening HSBC Accounts, overseas HSBC Accounts and also will have access to emergency encashment in select countries.