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Home Loans FAQs

Common questions for HSBC home loans

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Home Loan

How do I apply for a Home Loan/Loan Against Property (LAP) from HSBC?

To apply for a Home Loan/LAP you may:

  1. Walk in to the HSBC India branch or
  2. Reach out to your Relationship Manager or
  3. Call our PhoneBanking numbers or
  4. Apply through the online tools on HSBC’s website and we will arrange for a bank representative to visit you.

What is the minimum and maximum Home Loan amount I can avail of?

The minimum and maximum loan depends on city of property and property type.

Minimum and Maximum Home Loan Amounts

Home Loan amount in ₹

Type of properties

City

5,00,000 to 10,00,00,000

Ready and under-construction

Mumbai and Delhi [NCR]

3,00,000 to 7,50,00,000

Ready and under-construction

Bengaluru, Chennai, Pune,

Ahmedabad, Chandigarh, Jaipur, Hyderabad and Kolkata (only Ready Property)

3,00,000 to 1,00,00,000

Self-construction loan

Mumbai, Delhi [NCR], Bengaluru,

Chennai, Pune, Ahmedabad,

Chandigarh, Jaipur, Hyderabad

3,00,000 to 25,00,000

Home improvement loan

Mumbai, Delhi [NCR], Bengaluru,

Chennai, Pune, Ahmedabad,

Chandigarh, Jaipur and Hyderabad and Kolkata

Minimum and Maximum Home Loan Amounts

Home Loan amount in ₹

5,00,000 to 10,00,00,000

Type of properties

Ready and under-construction

City

Mumbai and Delhi [NCR]

Home Loan amount in ₹

3,00,000 to 7,50,00,000

Type of properties

Ready and under-construction

City

Bengaluru, Chennai, Pune,

Ahmedabad, Chandigarh, Jaipur, Hyderabad and Kolkata (only Ready Property)

Home Loan amount in ₹

3,00,000 to 1,00,00,000

Type of properties

Self-construction loan

City

Mumbai, Delhi [NCR], Bengaluru,

Chennai, Pune, Ahmedabad,

Chandigarh, Jaipur, Hyderabad

Home Loan amount in ₹

3,00,000 to 25,00,000

Type of properties

Home improvement loan

City

Mumbai, Delhi [NCR], Bengaluru,

Chennai, Pune, Ahmedabad,

Chandigarh, Jaipur and Hyderabad and Kolkata

 

For an HSBC Premier customer, maximum loan amount is ₹10,00,00,000 for all sourcing cities for ready and under construction properties.

For Smart Home, the minimum loan amount is ₹5,00,000 for all property types.

The minimum agreement and market value of the property to be funded for Mumbai and Delhi is ₹25,00,000 and for all other sourcing cities is ₹15,00,000.

What is the minimum and maximum Loan Against Property amount I can avail of?

The minimum and maximum loan is dependent on city of property and property type.

Minimum and Maximum Loan Against Property Amounts

Loan Against Property amount in ₹

City

3,00,000 to 10,00,00,000

Mumbai and New Delhi (NCR)

3,00,000 to 7,50,00,000

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

Minimum and Maximum Loan Against Property Amounts

Loan Against Property amount in ₹

3,00,000 to 10,00,00,000

City

Mumbai and New Delhi (NCR)

Loan Against Property amount in ₹

3,00,000 to 7,50,00,000

City

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

For HSBC Premier customer, maximum loan amount is ₹10,00,00,000 for all sourcing cities.

For Smart Home, the minimum loan amount is ₹5,00,000 for all property types.

The minimum market value of the property to be funded for Mumbai and Delhi is ₹25,00,000 and for all other sourcing cities is ₹15,00,000.

What are the rate options available for Home Loan/LAP from HSBC?

Home Loan

Floating Rate loans sourced after 1st April 2016 are linked to HSBC's 3 months MCLR. Any change in MCLR would impact your interest rate. This would have a corresponding impact on your Equated Monthly Installment (EMI) and/or loan tenure depending on the Bank's prevailing policy. The Bank may offer fixed rate loans from time to time.

LAP

We offer only floating rate of interest for Loan Against Property.

Are there any charges that need to be paid while availing of the Home Loan/LAP facility from HSBC?

Your Home Loan/Loan Against Property facility is subject to certain fees/charges applicable before and after disbursement. These charges include processing fees, paid partly on loan application and the balance before disbursement. Please refer to the ‘Loan Service Charges and Fees’ for further details. Additionally, your security documents need to be stamped/franked as per local stamp duty laws.

Are prepayment charges applicable for the Home Loan facility from HSBC?

For detailed information on the prepayment and other charges on Home Loan please visit - Loans Service Charges and Fees (hyperlink to : https://www.hsbc.co.in/home-loans/fees-and-charges/)

Are prepayment charges applicable if I prepay my LAP?

For detailed information on the prepayment and other charges on Loan against Property please visit - Loans Service Charges and Fees (Hyperlink to: https://www.hsbc.co.in/home-loans/fees-and-charges/)

How do I repay my Home Loan/LAP?

Your loan is to be repaid in monthly instalments on the due date as mentioned in the welcome kit. The instalment amount would comprise of principal and interest which are payable in Equated Monthly Instalments (EMIs), as set out in the Loan Agreement/Facility Advice Letter. The repayment of EMIs will be vide standing instructions to your HSBC account. In case your company is a co-applicant to the loan, then we also accept ECS from the company’s current account to repay the EMIs.

Can I avail of a Loan Against Property (LAP) against my commercial property?

HSBC offers LAP only against owned residential properties. The residential property may be self-occupied or rented and should be free from any encumbrance (not mortgaged elsewhere). LAP is available to applicants for properties in and around the city limits of (sourcing cities) Mumbai, New Delhi (NCR), Bengaluru, Pune, Chandigarh, Jaipur, Ahmedabad, Chennai, Kolkata and Hyderabad and is subject to change from time to time.

I would like to know more about tax benefits/implications on a Home Loan. Whom do I need to approach?

We recommend that you approach a professional tax advisor for information on tax-related matters and implications on/of your loan.

What are the repayment date options for servicing my Home loan/Loan Against Property Equated Monthly Instalment (EMI)?

The EMI dates would be on the 1st or the 15th of every month following the month of disbursal. For loans disbursed between the 1st and the 15th, the EMI would fall on the 1st of the next month and for loans disbursed between the 15th and the 31st of the month, the EMI would fall on the 15th of the next month.

How can I know what is the principal/interest break-up of the EMI paid?

The Bank can provide you a loan track record which will give you the breakup of your monthly interest and principal payment. You can visit the nearest branch, call your Relationship Manager, call our PhoneBanking service or send us a secured e-mail through Internet Banking to request for a track record on your Home Loan.

I have some queries and need some assistance on my existing Home Loan/LAP, whom do I approach?

You can visit the nearest HSBC branch, call our PhoneBanking numbers in India or reach out to your Relationship Manager.

Smart Home

How does Smart Home work?

Your outstanding loan amount appears as a debit balance in your Smart Home Account. Any deposit in the Smart Home account, reduces this debit balance. 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, that amount will remain available for your use in the Smart Home account and at the same time it helps save on your interest payments. In addition to savings on interest, this facility also provides you with complete flexibility to use the Smart Home account as your banking account. You will get full access to this account through a cheque book, debit card and internet banking.

How do I repay the loan?

Repayment of the loan is through a letter of authority to debit your Smart Home account for the EMI.

The interest portion of the EMI is debited to the Smart Home account and the principal portion in reduced from the limit outstanding You repay the loan by depositing at least the EMI amount into the Smart Home account every month.

Limit outstanding means the principal portion (limit defined on system) that is outstanding as on that day. This is not inclusive of any interest or principal portion of the ledger balance that is overdue for payment. The limit is reduced on a monthly basis in line with the principal payment expected.

How can I know what is the principal/interest break-up of the EMI paid?

The track record of your Smart Home will give you the break-up of your monthly interest and principal payment.

How do I repay the loan sooner with Smart Home from HSBC?

You pay the EMI every month which consists of the interest and principal components. Any excess deposit in the Smart Home account over and above the EMI helps you to save on interest payments. Such excess deposits will lead to lower interest component in the EMI and thereby higher amount being apportioned towards the principal repayment. This will help you pay off your loan faster.

Smart Loan Against Property

How does SmartLAP from HSBC work?

Your outstanding loan amount appears as a debit balance in your SmartLAP account. Any deposit in the SmartLAP account, reduces this debit balance. 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 SmartLAP account and at the same time it helps save on interest payments. In addition to savings on interest, this facility also provides you with complete flexibility to use the SmartLAP account as your banking account. You will get full access to this account with a cheque book, debit card and Internet Banking.

How do I repay the loan?

Repayment of the loan is through a letter of authority to debit your SmartLAP account for the EMI.

The interest portion of the EMI is debited to the SmartLAP account and the principal portion in reduced from the Limit outstanding. You repay the loan by depositing at least the EMI amount into the SmartLAP account every month.

Limit outstanding means the principal portion (limit defined on system) that is outstanding as on that day. This is not inclusive of any interest or principal portion of the ledger balance that is overdue for payment. The limit is reduced on a monthly basis in line with the principal payment expect.

How can I know what is the principal/interest break-up of the EMI paid?

The track record of your SmartLAP will give you the break-up of your monthly interest and principal payment.

How do I repay the loan sooner with SmartLAP from HSBC?

You pay the EMI every month which consists of the interest and principal components. Any excess deposit in the SmartLAP account over and above the EMI helps you to save on interest payments. Such excess deposits will lead to lower interest component in the EMI and thereby higher amount being apportioned towards the principal repayment. This will help you pay off your loan faster.

Are pre-payments allowed on SmartLAP from HSBC?

Yes, pre-payments are allowed. For this, you must issue written instructions to the Bank stating that you wish to reduce the loan amount.

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Important Information

Terms & Conditions

*HSBC India currently offers Investment Products from entities registered and regulated in India. These products are currently not available to HSBC Premier NRI customers residing in US, Canada, Australia and New Zealand. HSBC Premier NRI customers residing in countries like United Kingdom, Singapore, Hong Kong will be able to invest in these products through HSBC when they are physically present in India. Investments and services are subject to prevailing market conditions / external factors.