FAQs

How does Smart Home work?
Your outstanding loan amount appears as a debit balance in your Smart Home account.

Interest will be calculated on this debit balance amount in the account on a daily basis, i.e. if you pay an excess amount over the EMI, the excess amount will remain available for your use in the Smart Home account, and at the same time it helps save greatly on your interest cost.

In addition to interest saving, this facility also provides you with complete flexibility to operate the Smart Home account as your main banking account i.e. deposit and withdraw funds as per your cash flow and requirements.

You will get full access to this account through a cheque book, debit card and internet banking.

How do you repay the loan?
You repay the loan by depositing at least the EMI amount into the Smart Home account every month.

How do you repay the loan sooner in Smart Home?
You pay the EMI every month which consists of Interest and Principal component. Any excess deposit in the account over and above the EMI will help you to save the interest cost. This will lead to lower interest component in the EMI and thereby higher amount going towards the principal repayment and help you pay your loan off faster.

Is Smart Home available for all types of properties?
Yes, Smart home is currently available for both ready property and under construction property.

Are pre-payments allowed on Smart Home?
Yes, pre-payments are allowed. For this, you must issue written instructions to the Bank stating that you wish to reduce the loan amount. You can pre-pay up to a maximum of 25% of your loan every financial year. For amount in excess of 25%, a pre-payment charge of 3% shall be levied. Pre-payment is permitted after a minimum of 6 months following disbursal of the loan.

• 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 9.75% effective from August 02, 2011.
  
  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 17.00% effective from August 02, 2011.
  
  For further details on the Base Rate and it's impact on your floating rate loan, please refer to the FAQs.


• Terms and conditions apply. All loans at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India. Loans available for applicants and properties in and around the limits of cities where HSBC has branches and is subject to change from time to time.