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 property.
  • Loan requirement - Loans up to INR100,000,0001
  • Loan tenure - Tenor of up to 15 years
  • Simple documentation

Interest rates

Floating rate
9.60% 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 taxes5). The fee is collected in two parts: INR5,000 + applicable taxes5 is to be paid upfront along with the loan application and the balance processing fee amount applicable taxes5 is to be paid before disbursal of the loan. Processing fee paid is non-refundable.

Prepayment charges for Loan Against Property
Details Fees

For Home Loan and Smart Home (floating rate)

No pre-payment charges

Prepayment charges for Loan Against Property
Details

For Home Loan and Smart Home (floating rate)

Fees

No pre-payment charges

Prepayment charges for Fixed Rate Loan Against Property6
Details Fees

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
Prepayment charges for Fixed Rate Loan Against Property6
Details

Up to 25% of the loan amount sanctioned in every financial year

Fees

Nil

Details For amount more than 25% of the loan amount sanctioned in every financial year
Fees 3% of amount prepaid

6 Prepayment is permitted after a minimum of 6 months from the date of loan disbursal. 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

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.

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.

Read more details on the applicable fees and charges.

Eligibility

To qualify for a Home Loan 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 INR100,000,000
  6. Maximum tenure (in years) 20 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

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 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, 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 city of property and property type. Loan amount of INR500,000 to INR100,000,000 for ready and under-construction properties in Mumbai, New Delhi (NCR). INR300,000 to 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). INR300,000 to INR300,00,000 for purchase of plot of land in Mumbai and Delhi. INR300,000 to INR30,000,000 for purchase of plot of land in Bengaluru, Chennai, Pune, Ahmedabad, Chandigarh, Jaipur and Hyderabad. INR300,000 to INR10,000,000 for self-construction loan and INR300,000 to INR2,500,000 for home improvement loans for properties in all sourcing cities. For HSBC Premier customer maximum loan amount of INR100,000,000 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 INR2,500,000 and for all other sourcing cities is INR1,500,000.

2 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.

3 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.

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

5 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.

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 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 5000/- plus applicable taxes would be charged. The application form for conversion can be found here.

The Most Important Terms and Conditions (MITC) (PDF, 138KB) 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.