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Fees and Charges

View all of our home loan fees and charges

Table of contents

Marginal Cost of Funds based Lending Rate (M.C.L.R.)

With effect from 01 November 2018, the applicable Marginal Cost of Funds based Lending Rate (M.C.L.R.) will be as follows.

Marginal Cost of Funds based Lending Rates
Tenors Rate (in %)
Overnight 8.30
1 Month 8.30
3 Months 8.55
6 Months 8.85
1 Year 9.15
Marginal Cost of Funds based Lending Rates
Tenors Overnight
Rate (in %) 8.30
Tenors 1 Month
Rate (in %) 8.30
Tenors 3 Months
Rate (in %) 8.55
Tenors 6 Months
Rate (in %) 8.85
Tenors 1 Year
Rate (in %) 9.15

Base Rate (since Jun 17) – 8.90%
Retail Lending Rate (RLR, since Jun 17) – 16.15%

The Interest rate on your Floating Rate loan effective 1st April 2016 is linked to HSBC’s (the Bank) published 3 month Marginal Cost of Fund based Lending Rate (MCLR) and will be reset on a three monthly basis. The 3 month MCLR is published by the Bank at the beginning of every month, which will be the benchmark rate for loans that are disbursed in that month. The floating rate of interest on all the loans disbursed by the bank will be reset at an interval of 3 months from the month of loan disbursal. It will be reset against the 3 month MCLR published by the bank in the month of reset. The reset will be done by the 7th calendar day of the month. (refer to the example below) A revision in the applicable rate of interest will lead to a revision in the Equated Monthly Instalment (EMI) or the loan tenure at the bank’s discretion. The revised loan interest rate will be notified to you by SMS, or e-mail or letter as per the bank’s prevailing policy; however SMS will be the preferred mode. Though the current benchmark rate applicable to your loan is the 3 month MCLR, the bank reserves the right to change the benchmark rate to a different maturity MCLR, with due notice to you.

The applicable rate of interest rate on your loan is the 3 month MCLR plus the margin (spread). The margin charged to you will not be increased throughout the tenure of the loan, except on account of deterioration in the credit risk profile of the borrower.

Example: Loans disbursed during Month 1 will be benchmarked against the 3-Month MCLR of Month 1. For all loans disbursed during Month 1, the interest will be reset in Month 4 against the 3-Month MLCR published at the beginning of Month 4 (by the 7th calendar day of Month 4). The interest rate will continue to be reset every 3 months, i.e. in Month 7, 10 of the year and so on. Similarly, all loans disbursed in Month 2 will be reset against the 3-Month MCLR published at the beginning of Month 5 (by 7th calendar day of the Month 5). This will continue to be reset every 3 months, i.e. in Month 8 and Month 11 of the year, and so on.

Please note that basis Goods and Services Tax (GST) regulations and notified GST rates, Central GST and State/Union Territory GST or Inter-State GST, as applicable, would apply on our fees and charges with effect from 01 July 2017.

Fees and charges are subject to change at the sole discretion of the bank.

All loans at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India.

Service Tax

As per the Central Government directive, from 15 Nov 2015, Swachh Bharat Cess @0.5% will be levied and with this, the effective rate of tax would be 15% to include the Swachh Bharat Cess (0.5%). The revised service tax will be computed as per the table below and will be levied on all foreign currency remittance and exchange transactions (Purchase or Sale) executed by HSBC India/Bank.
 

Home Loan from HSBC/Smart Home/MyHome1

1 This product is no longer offered by the bank. Information mentioned is for existing customers who have availed of MyHome product earlier.

Request for copy of property documents held with the bank: ₹500

Note: All above fees and charges are not applicable for HSBC Premier customers.

A total of 1% of the loan amount sanctioned or ₹10,000, whichever is higher, will be applicable as Processing Fee (plus applicable taxes*). The fee is collected in two parts: ₹5,000 + applicable taxes* is to be paid upfront along with the loan application and the balance Processing Fee amount + applicable taxes* is to be paid before disbursal of the loan. Processing Fee paid is non-refundable.

For delayed installments on account of cheque or SI (standing instruction) dishonors ₹250 per instance.

Penal Interest on the delayed installments on account of cheque or SI (standing instruction) 2% over and above the existing interest rate charged on the loan account for the amount which is overdue.

Prepayment Charges

For Home loan (Floating rate) and Smart Home (Floating rate) No pre-payment charges.

For Fixed Rate Home Loan2 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.

2 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.

From floating rate to fixed rate

3 Loan anniversary is the day 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.

The Bank may offer fixed rate loans from time to time, the terms and conditions of which will be shared in the loan documents and the MITC

From fixed rate to floating rate

Switching from fixed rate to floating rate is allowed only after completion of fixed term. 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 3 month Marginal Cost of Fund based Lending Rate (MCLR). The applicable margin over the 3 month Marginal Cost of Fund based Lending Rate (MCLR) 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.

Note

1) The Interest rate on your floating rate loan effective 1st April 2016 is linked to HSBC’s (the bank) published 3 month Marginal Cost of Fund based Lending Rate (MCLR) and will be reset on a three monthly basis. The 3 month MCLR is published by the bank at the beginning of every month, which will be the benchmark rate for loans that are disbursed in that month. The floating rate of interest on all the loans disbursed by the bank will be reset at an interval of 3 months from the month of loan disbursal. It will be reset against the 3 month MCLR published by the bank in the month of reset. The reset will be done by the 7th calendar day of the month. (refer to the example below) A revision in the applicable rate of interest will lead to a revision in the Equated Monthly Instalment (EMI) or the loan tenure at the bank’s discretion. The revised loan interest rate will be notified to you by SMS, or e-mail or letter as per the bank’s prevailing policy; however SMS will be the preferred mode. Though the current benchmark rate applicable to your loan is the 3 month MCLR, the bank reserves the right to change the benchmark rate to a different maturity MCLR, with due notice to you.

The applicable rate of interest rate on your loan is the 3 month MCLR plus the margin (spread). The margin charged to you will not be increased throughout the tenure of the loan, except on account of deterioration in the credit risk profile of the borrower.

Example: Loans disbursed during Month 1 will be benchmarked against the 3-Month MCLR of Month 1. For all loans disbursed during Month 1, the interest will be reset in Month 4 against the 3-Month MLCR published at the beginning of Month 4 (by the 7th calendar day of Month 4). The interest rate will continue to be reset every 3 months, i.e. in Month 7, 10 of the year and so on. Similarly, all loans disbursed in Month 2 will be reset against the 3-Month MCLR published at the beginning of Month 5 (by 7th calendar day of the Month 5). This will continue to be reset every 3 months, i.e. in Month 8 and Month 11 of the year, and so on.

2) For processing prepayment requests, customers are required to send HSBC, a written instruction communicating their desire to prepay 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 based on the prepayment amount received. In case excess funds/amounts are received towards the loan account without any written instructions from the customer to prepay, for Smart Home the amount will be credited to the Smart Home account and will impact the available balance in the account. However for Home Loan, such excess amounts will be apportioned towards the principal amount of the loan.

3) Fixed rate is not available for Smart Home.

Legal Charges

Expenses incurred on proceedings under SARFAESI Act/Proceedings under Sec138 of NI Act and/or other litigation on the account as per actuals applicable to an overdue/delinquent account.

Other Charges

Other incidental charges & expenses will be levied to cover the costs, charges, expenses, lawyers' charges and/or cost incurred on the litigation/any legal matter and all other cost that may have been incurred in connection with recovery of dues from delinquent accounts. As per actuals applicable to an overdue / delinquent account.

Note

Please be advised that applicable Indirect Taxes would be recovered on all our fees and charges and any other amount liable to tax under prevailing Indirect Tax Laws.

Charges are applicable for relevant services, for the associated savings/current account. Please refer to the tariff schedule for such accounts displayed on www.hsbc.co.in for details.

The charges are subject to change from time to time, at the sole discretion of HSBC. Any such change will be made with prospective effect post providing a month’s notice. If we have made any change without notice, we will notify the change within 30 days. If such change is to your disadvantage, you may within 60 days and without notice, close your account without having to pay any prepayment charges. However, this would not be applicable to changes in finance charges (interest rates) and any charge levied as a result of regulatory requirements.

Late payment charge (Includes Penal Interest and Charges for delayed instalments on account of cheque or Standing Instruction(SI) dishonours) will be applicable if the Equated Monthly Installment (EMI) which is due is not paid by the due date.

The interest rate on your floating rate loan, if disbursed on/after April 01, 2016 is linked to HSBC's 3 month Marginal Cost of Fund based Lending Rate (MCLR). Any revision in the 3 month MCLR would impact your interest rate.

The interest rate on your floating rate loan, if disbursed on/after July 01, 2010 till March 31, 2016 is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate.

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.

Loan Against Property/Smart Loan Against Property

Request for copy of property documents held with the bank: ₹500 

Note: All above fees and charges are not applicable for HSBC Premier customers

Processing fee: A total of 1% of the loan amount sanctioned or ₹10,000, whichever is higher, will be applicable as Processing Fee (plus applicable taxes*). The fee is collected in two parts: ₹5,000 + applicable taxes* is to be paid upfront along with the loan application and the balance Processing Fee amount + applicable taxes* is to be paid before disbursal of the loan. Processing Fee paid is non-refundable.

For Delayed installments on account of cheque, ECS or SI (standing instruction) dishonors ₹250 per instance. 

Debit card charges ₹150 per annum.

Penal interest on the delayed instalments on account of cheque or SI 2% over and above the existing interest rate charged on the loan account for the amount which is overdue.

Annual Fee (only applicable for Smart LAP) 1% of limit outstanding payable on each loan anniversary4 till the loan is completely repaid.

Pre-payment Charges

For LAP (Floating Rate) and Smart LAP (Floating Rate) NIL Pre-payment Charges

Prepayment charges for Fixed Rate LAP5

Up to 25% of the outstanding loan amount once in every financial year NIL.

For amount in excess of  25% of the outstanding loan amount or more than one prepayment 4% of Pre-payment amount.

4 Loan anniversary is the day 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.

5 The prepayment charges are applicable only during the fixed rate tenure. If you switch your loan to floating rate, prepayment charges will not be applicable.

Note

1) The interest rate on your floating rate loan, if disbursed on/after April 01, 2016 is linked to HSBC's 3 month Marginal Cost of Fund based Lending Rate (MCLR). Any revision in the 3 month MCLR would impact your interest rate.

2) For processing prepayment requests, customers are required to send HSBC, a written instruction communicating their desire to prepay 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 based on the prepayment amount received. In case excess funds/amounts are received towards the loan account without any written instructions from the customer to prepay, for SmartLAP the amount will be credited to the SmartLAP account and will impact the available balance in the account. However for Loan Against Property, such excess amounts will be apportioned towards the principal amount of the loan.

3) Fixed rate is not offered for SmartLAP.

4) Switching is not permitted from LAP to SmartLAP and vice versa.

Legal/Other Charges

Legal Charges

Expenses incurred on Proceedings under SARFAESI Act/Proceedings under Sec138 of NI Act and/or other litigation on the account as per actuals applicable to an overdue/delinquent account.

Other Charges

Other incidental charges & expenses will be levied to cover the costs, charges, expenses, lawyers' charges and/or cost incurred on the litigation/any legal matter and all other cost that may have been incurred in connection with recovery of dues from delinquent accounts. As per actuals applicable to an overdue/delinquent account.

Note: Please be advised that applicable Indirect Taxes would be recovered on all our fees and charges and any other amount liable to tax under prevailing Indirect Tax Laws.

Charges are applicable for relevant services, for the associated savings/current account. Please refer to the tariff schedule for such accounts displayed on www.hsbc.co.in for details.

The charges are subject to change from time to time, at the sole discretion of HSBC. Any such change will be made with prospective effect post providing a month’s notice. If we have made any change without notice, we will notify the change within 30 days. If such change is to your disadvantage, you may within 60 days and without notice, close your account without having to pay any prepayment charges. However, this would not be applicable to changes in finance charges (interest rates) and any charge levied as a result of regulatory requirements.

Late payment charge (Includes Penal Interest and Charges for delayed instalments on account of cheque or Standing Instruction(SI) dishonours) will be applicable if the Equated Monthly Installment (EMI) which is due is not paid by the due date.

The interest rate on your floating rate loan, if disbursed on/after April 01, 2016 is linked to HSBC's 3 month Marginal Cost of Fund based Lending Rate (MCLR). Any revision in the 3 month MCLR would impact your interest rate.

The interest rate on your floating rate loan, if disbursed on/after July 01, 2010 till March 31, 2016 is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate.

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.

Asset Link (Overdraft Against Shares)

Annual Service Charges 1.5% of limit. 

Duplicate Statements ₹250 per statement.

Service Withdrawal Charge ₹200 per scrip (Max. ₹500 per withdrawal).

Unauthorized Overdraft/Overlimit  2% over and above the applicable interest rate.

Charge for unsuccessful execution of Standing Instruction for payment/Cheque bounce charge  ₹250.

Note: The above is an extract of our tariff.

Services Offered* (Home Loan/Smart Home/LAP/Smart LAP)

Switching Options

From Home Loan to Smart Home and vice versa.

From floating rate to fixed rate and vice versa (Applicable if Fixed Rate is offered).

Switching from fixed rate to floating rate is allowed only after completion of fixed term.

Switching is not permitted from LAP to SmartLAP and vice versa.

Other Services

Request for change of EMI date, rescheduling of loans (increase/decrease in EMI/tenure)

Request for daily interest calculation details

Request for duplicate amortisation schedule

Request for duplicate copy of welcome pack (amortisation schedule plus facility advice letter plus list of documents)

Re-pricing request for an active account

Request for change of Standing Instructions, change of repayment mode (cheque swap charges)

Copy of track record 

Copy of Credit Information Report (CIR) 

* The services offered in this section are currently not chargeable to you.

Note

We reserve the right to vary charges or fees from time to time by giving you prior notice of not less than 30 days for any variation affecting fees and charges under our control or affecting your liabilities or obligations or for such reasonable period as we may specify in the case of other variations. We will immediately update, on our website, any changes to the tariff.

If we have made any change without notice, we will notify the change within 30 days. If such change is to your disadvantage, you may within 60 days of the notice, close your account without having to pay any prepayment charge.

We would not be bound by a month’s notice for change in interest rates or any charge levied as a result of regulatory requirements.

Annual Percentage Return (APR)*

for mortgage loans with HSBC for salaried customers (for maximum tenure of 25 years for Home Loans & 15 Years for LAP)

 

* APR represents the total cost of credit on a loan to the borrower

Annual Percentage Return for Home Loans

Mortgage Product

Overall APR

Home Loan

8.71%

Smart Home

9.21%

LAP

9.96%

Smart LAP

11.20%

Annual Percentage Return for Home Loans

Mortgage Product

Home Loan

Overall APR

8.71%

Mortgage Product

Smart Home

Overall APR

9.21%

Mortgage Product

LAP

Overall APR

9.96%

Mortgage Product

Smart LAP

Overall APR

11.20%

   

Interest Rate Range (Q2, 2017)

* Mean Rate of Interest is calculated as simple average of Rate of Interest

Interest rates based on mortgage product

Product

Min Rate

Max Rate

Mean* Rate

Regular Home

8.25%

8.85%

8.48%

Smart Home

8.35%

9.65%

8.73%

LAP

9.10%

10.00%

9.58%

Smart LAP

9.00%

10.20%

9.65%

Interest rates based on mortgage product

Product

Regular Home

Min Rate

8.25%

Max Rate

8.85%

Mean* Rate

8.48%

Product

Smart Home

Min Rate

8.35%

Max Rate

9.65%

Mean* Rate

8.73%

Product

LAP

Min Rate

9.10%

Max Rate

10.00%

Mean* Rate

9.58%

Product

Smart LAP

Min Rate

9.00%

Max Rate

10.20%

Mean* Rate

9.65%

Service Tax

As per the Central Government directive, from 15 Nov 2015, Swachh Bharat Cess @0.5% will be levied and with this, the effective rate of tax would be 15% to include the Swachh Bharat Cess (0.5%). The revised service tax will be computed as per the table below and will be levied on all foreign currency remittance and exchange transactions (Purchase or Sale) executed by HSBC India/Bank.