We understand that buying a house is one of the most important decisions in life, for people across the world. We also know that while most people dream of owning a perfect home, achieving that goal can be quite a challenge, especially when it comes to arranging the finance required to make such an expensive purchase.
But you can now fulfill this dream by opting for a Home Loan from HSBC.
Loan requirement - Loans ranging from Rs. 3 lakhs1 upto Rs. 10 crore1
Property types - Loans are available to Resident Indians and Non-Resident Indians (NRIs) for ready properties, select under construction properties approved by HSBC, purchase of plot of land, self-construction and home improvement. NRI applicants must have a local co-applicant or a local contact person.
Loan tenure - Loans are available for tenures upto 20 years and for salaried customers up to 25 years.
Interest rate - Choose between fixed and floating rate2. Click here to know existing rate of interest.
With fixed rate, the rate of interest is fixed for the specified loan tenure as per the fixed tenure offering of the Bank as on that date. We offer fixed rate for loan tenure of 12 months.Post the completion of the fixed rate tenure, your rate will move to Floating rate, which will be linked to then prevailing Base Rate. The applicable margin over the Base Rate will be decided upfront while availing the Fixed rate loan.Fixed Rate loan is not offered for under construction loan and /or interest servicing loans
You also have the option of switching from a floating rate2 Home Loan to a fixed rate Home Loan at any time by paying a switching charge of 0.5% on the outstanding loan amount. However, if the switch is done within one month prior to the loan anniversary3 every year the charges are nil.
Fees & Charges4
A total of 1% of the loan amount sanctioned or Rs. 10,000, whichever is higher, will be applicable as Processing Fee (plus service tax). The fee is collected in two parts: Rs. 5,000 + Service Tax is to be paid upfront along with the loan application and the balance Processing Fee amount + Service Tax is to be paid before disbursal of the loan. Processing Fee paid is non-refundable.
|For Home Loan and Smart Home (floating rate)||No pre-payment charges|
|For fixed rate Home Loan as below*|
|Up to 25% of the loan amount sanctioned in every financial year||Nil|
|For amount more than 25% of the loan amount sanctioned in every financial year||3% of amount prepaid|
|Note: For processing pre-payment requests, you are required to send HSBC a written instruction communicating your desire to pre-pay with their intent of wanting to reduce the loan tenure or EMI. In case no clear instruction is received to reduce loan tenure or EMI, we will by default reduce the loan tenure basis the pre-payment amount received. In case excess funds/amounts are received towards the loan account without any written instructions from the customer to prepay, such excess amounts will be apportioned towards the principal amount of the loan.
* Prepayment is permitted after a minimum of 6 months following disbursal of the loan. The prepayment charges mentioned above shall be applicable during the fixed rate tenure of the loan. In case of the loan switching to floating rate, prepayment charges will not be applicable.
Click here for other applicable fees and charges
The security documents need to be stamped as per the local stamp duty laws, please speak to your Relationship Manager regarding the stamp duty payable on your documents.
Loan repayment is through Standing Instruction/Letter of authority to debit your HSBC Savings/Current Account for the Equated Monthly Instalment (EMI).
Non Resident customers can repay home loans by one of the following modes only:
Debit to their NRE Account /NRO Account /Inward remittance / liquidation of FCNR/ sales proceeds of immovable property on which loan was granted / Close relative's* bank account
If you are repaying the loan through any channel other than your linked repayment account, please enclose the following 'Declaration / Loan Request Form'
*Close relative as defined in Companies Act, 1956
Please seek independent professional tax advice for any tax related issues and implications on/of your loan.
Below example highlights how the interest on your loan is calculated.
Note: Calculations for Rs. 25 lakh at an interest rate of 11.00% p.a. for 20 years. EMI is Rs. 26,165 which consists of interest and principal components as mentioned below:
|Month||Outstanding balance (Rs)||EMI (Rs)||Interest (Rs)||Principal (Rs)|
Note: Rate of interest shown is for illustration and actual interest rate charged to your account may vary.
Interest is calculated on daily reducing balance charged on monthly basis.
As shown above, the interest for Rs. 25,00,000 at 11.00% p.a. for 1 month is Rs. 23,356.
Monthly interest amount = [outstanding loan balance] x [rate of interest] x [no. of days in the month/no. of days in the year].
With effect from 1 July 2010, the interest rate on your floating rate loan is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate. For further details on the Base Rate and its impact on your floating rate loan, click here.
You can repay the loan by giving Standing Instruction/Letter of Authority to debit your HSBC Savings/Current Account for the Equated Monthly Instalment (EMI).
HSBC Savings / Current account
The HSBC Savings/Current Account used for the repayment of the loan comes without the requirement to maintain any minimum balance in the account during the tenure of the loan. You can also avail of the following benefits alongside your HSBC Savings/Current Account:
If the initial loan amount is greater than Rs. 30,00,000, you can avail of benefits of HSBC Advance, without the requirement to maintain any minimum balance in the account during the tenure of your loan. The benefits of HSBC Advance include:
Loans for Under Construction Property / Interest Servicing Loans
In case of under construction properties the loan is disbursed in tranches and interest will be levied by HSBC only on the amount disbursed. Until the final disbursement of the loan, Pre-Equated Monthly Instalment (Pre-EMI)5 is payable. The Equated Monthly Instalment (EMI)6 of the loan starts only when the loan is fully disbursed.
For under construction properties the requisite interest/Pre-EMI amount is debited on a monthly basis on the 8th of every month depending on the loan amount disbursed.
The applicable rate of interest will be the rate of interest given in the Facility Advice Letter (FAL) at the time the loan is sanctioned. All floating rate loans are linked to the HSBC's Base Rate. Any revision in the Base Rate would impact the rate of interest.
For disbursal/release of each tranche to the builder, HSBC would need a written instruction from you requesting for disbursal/release of the tranche to the builder, along with the original demand letter from the builder and the disbursal advice letter.
Along with your request, for release of the final tranche to the builder, you need to provide insurance policy insuring the property against loss by fire, earthquake, floods and other damages with HSBC as the beneficiary. On release of the final tranche i.e. on the complete disbursement of the loan, the entire EMI will be payable by you as per the FAL.
All loans are subject to Terms and Conditions and are at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India (HSBC). Currently Home Loan is available to applicants and for properties in and around the city limits of (sourcing cities) Mumbai, New Delhi (NCR), Bengaluru, Pune, Chandigarh, Jaipur, Ahmedabad, Chennai and Hyderabad; and are subject to change from time to time.
1 The minimum and maximum loan depends on city of property and property type. Loan amount of Rs. 5,00,000 to Rs. 10,00,00,000 for ready and under-construction properties in Mumbai, New Delhi (NCR). Rs. 3,00,000 to Rs. 7,50,00,000 for ready and under construction properties in Bengaluru, Chennai, Pune, Ahmedabad, Chandigarh, Jaipur and Hyderabad. Rs. 3,00,000 to Rs. 3,00,00,000 for purchase of plot of land in Mumbai and Delhi. Rs. 3,00,000 to Rs. 3,00,00,000 for purchase of plot of land in Bengaluru, Chennai, Pune, Ahmedabad, Chandigarh, Jaipur and Hyderabad. Rs. 3,00,000 to Rs. 1,00,00,000 for self-construction loan and Rs. 3,00,000 to Rs. 25,00,000 for home improvement loans for properties in all sourcing cities. For HSBC Premier customer maximum loan amount of Rs. 10,00,00,000 for all sourcing cities for ready and under construction properties. The minimum agreement and market value of the property to be funded for Mumbai and Delhi is Rs. 25 lakh and for all other sourcing cities is Rs. 15 lakh
2 The interest rate on your floating rate loan, post 1 July 2010, is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate.
3 Loan anniversary is the date and month on which the loan was disbursed. Example: If your loan was disbursed on 20 May 2012. Then every year, 20 May will be the loan anniversary.
4 Please be advised that applicable Indirect Taxes including service tax and cess would be recovered on all our fees and charges and any other amount liable to tax under prevailing Indirect Tax Laws.
5 Pre Equated Monthly Instalment (Pre-EMI) means interest on the loan from the date/dates of disbursement of the loan to the date immediately prior to the date of commencement of EMI and initially at the rate indicated in the FAL and subject to change from time to time. Pre-EMI amount will be adjusted towards payment of the interest accrued on the outstanding loan amount.
6 Equated Monthly Instalment (EMI) means the amount of monthly payment consisting of principal and interest necessary to amortise the loan amount with applicable interest within such period as may be determined by the Bank from time to time.
Available to both Residents as well as NRIs. NRI Applicants must have a local co-applicant or a local contact person. All joint owners of the property would necessarily have to be co-applicants and would need to sign all loan documents.
The interest rate on your floating rate loan, if disbursed on / after July 01, 2010 is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate. The Base Rate is 9.45% p.a. effective from February 09, 2015.
The interest rate on your floating rate loan if disbursed prior to July 01, 2010 is linked to HSBC's Retail Lending Rate (RLR) and any revision in the RLR would impact your interest rate. The RLR is 16.70% p.a. efffcetive February 09, 2015.
For further details on the Base Rate and it's impact on your floating rate loan, please refer to the FAQs, click here.
The Most Important Terms and Conditions (MITC) are displayed on the website for your reference. A copy of the same is also available at our Branches. Click here to view.
Please be advised that applicable Indirect Taxes including service tax and cess would be recovered on all our fees and charges and any other amount liable to tax under prevailing Indirect Tax Laws. Please click here for service tax details service tax details
Our Centralised Registration Number is AAACT2786PST001.