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Loan Against Property

Raise funds easily against your residential or commercial property

Why choose a Loan Against Property?

You strive to seize every opportunity and often lack of funds becomes a hindrance in achieving your goals. With Loan Against Property (LAP) from HSBC you can raise funds easily against your residential or commercial property.
  • Loan requirement - Loans up to INR 400,000,0001
  • Loan tenure - Tenor of up to 15 years
  • Simple documentation

Interest rates

Floating rates. Speak to a relationship manager for more details.
9.75% p.a.
Salaried + Self-employed
Fixed rates. Speak to a relationship manager for more details
14.00% p.a.
Salaried + Self-employed

Fees and charges

Processing Fees: A total of 1% of the loan amount sanctioned or INR10,000, whichever is higher, will be applicable as processing fee (plus applicable taxes2). The fee is collected in two parts: INR5,000 + applicable taxes2 is to be paid upfront along with the loan application and the balance processing fee amount applicable taxes2 is to be paid before disbursal of the loan. Processing fee paid is non-refundable.

Prepayment charges for Loan Against Property
Details Fees

For floating rate Loan against Property

No pre-payment charges

Prepayment charges for Loan Against Property
Details

For floating rate Loan against Property

Fees

No pre-payment charges

Prepayment charges for Fixed Rate Loan Against Property*
Type Charge

For Fixed rate Loan against Property

INR 5,000/- plus 5% of principal outstanding / amount prepaid plus applicable taxes.

 

Prepayment charges will apply in the following scenarios:

  • A bulk payment (over and above EMI) that results in a drop in account limit.
  • Any mid-term changes to the fixed rate loan account (for example: switching from fixed rate to floating rate loan).
  • The entire fixed rate home loan being paid off before the end of the fixed rate period.
Prepayment charges for Fixed Rate Loan Against Property*
Type

For Fixed rate Loan against Property

Charge

INR 5,000/- plus 5% of principal outstanding / amount prepaid plus applicable taxes.

 

Prepayment charges will apply in the following scenarios:

  • A bulk payment (over and above EMI) that results in a drop in account limit.
  • Any mid-term changes to the fixed rate loan account (for example: switching from fixed rate to floating rate loan).
  • The entire fixed rate home loan being paid off before the end of the fixed rate period.

* To know more on fees and charges applicable to fixed rate Home loans and Loan Against Property, please refer to Most important terms and conditions (MITC) for Floating and Fixed rate Home Loans.

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 EMI3. In case no clear instruction is received to reduce loan tenure or EMI, we will be default reduce the loan tenure basis the prepayment amount received.

Read more details on the applicable fees and charges.

Eligibility

To qualify for a Loan against Property from HSBC, the following criteria apply

  1. Minimum net income INR500,000 p.a (salaried)4 or INR750,000 p.a (self-employed)
  2. Minimum age (in years) 21
  3. Maximum age (in years) on maturity of loans 58 (salaried), or 60 (public limited/government employees), or 65 (self-employed)
  4. Minimum loan amount1 INR300,000
  5. Maximum loan amount1 INR 400,000,000
  6. Maximum tenure (in years) 15 years. For salaried applicants 25 years

Insurance

You would need to insure your property with an insurance company against loss by fire, earthquake, floods and other damages with The Hongkong and Shanghai Banking Corporation Limited, India, as the beneficiary.

End use of funds sanctioned by HSBC as LAP

The funds sanctioned by HSBC as LAP may be used for business and general needs. However, the funds should not be used for illegal or speculative purpose(s).

Apply for a Loan Against Property

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Frequently asked questions

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Important information

Terms & Conditions

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 LAP is available to applicants and for properties in and around the city limits of (sourcing cities) Mumbai, New Delhi, Noida, Gurgoan, Bengaluru, Pune, Chandigarh, Jaipur, Ahmedabad, Chennai, Hyderabad and Kolkata; and are subject to change from time to time.

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.

1 The minimum and maximum loan depends on customer’s relationship with HSBC, city of property and property type. Loan amount of upto INR 400,000,000 only for existing HSBC Top Tier customers for properties in Mumbai/Delhi/Bengaluru, upto INR 200,000,000 for properties in Pune, Hyderabad and Chennai, and upto INR 150,000,000 for other locations. For HSBC Premier customer maximum loan amount of INR150,000,000 for properties in Mumbai/Delhi and INR 100,000,000 for all other sourcing cities for ready and under construction properties. For other customers loan amount of upto INR100,000,000 for ready and under-construction properties in Mumbai, New Delhi (NCR), and INR75,000,000 for ready and under construction properties in Bengaluru, Chennai, Pune, Ahmedabad, Chandigarh, Jaipur, Hyderabad and Kolkata (however we do not fund under construction property in Kolkata). The minimum agreement and market value of the property to be funded for Mumbai and Delhi is INR2,500,000 and for all other sourcing cities is INR1,500,000.

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.

To meet the minimum income criteria, income of two salaried applicants can be clubbed.

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

The interest rate on your floating rate loan, if disbursed on/after 01 October 2019 is linked to HSBC's Repo Linked Lending Rate (RLLR). Any revision in the RLLR would impact your interest rate.

The interest rate on your floating rate loan, if disbursed on/after 01 April 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 01 July 2010 till 31 March 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 01 July 2010 is linked to HSBC's Retail Lending Rate (RLR) and any revision in the RLR would impact your interest rate.

Change of existing Benchmark Rate from MCLR/Base Rate/Retail Lending Rate to Repo Linked Lending Rate (RLLR)

Existing HSBC Mortgage customer who wish to link their Floating rate loans to RLLR from their existing benchmark rates of MCLR/Base Rate/Retail Lending Rate can do so by approaching their Relationship Managers or visiting their nearest branch for more details. A one time nominal switch over charge / fees of up to INR 2500/- plus applicable taxes would be charged. The application form for conversion can be found here.

Most important terms and conditions (MITC) for Floating and Fixed rate Home Loans (PDF, 152 KB) are displayed on the website for your reference. A copy of the same is also available at our Branches.

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.

Our Centralised Registration Number is AAACT2786PST001.

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