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Smart Home loan

A home loan that enables you to save on interest payments and thereby reduce tenure of the loan.

Why choose a Smart Home loan?

Your Smart Home is operated through a Smart Home account with an overdraft limit equal to the amount of the loan disbursed. Your Smart Home account would be your loan account.

All you need to do is to put your usual savings, in the Smart Home account. Depending on the savings you put in the Smart Home account, you can reduce the quantum of interest paid and thereby reduce the tenure of your loan.
  • Loan requirement - Loans ranging from INR500,0001 up to INR 600,000,0001
  • Property types - Loans are available to Resident Indians and Non-Resident Indians (NRIs) for ready properties, select under construction properties approved by HSBC. NRI applicants must have a local co-applicant or a local contact person
  • Loan tenure - Loans are available for tenures up to 25 years for salaried customers and up to 20 years for self employed customers

Interest rates

Floating rates. Speak to a relationship manager for more details.
9.00%  p.a.
Salaried, with commitment fee. 9.15% p.a. (without commitment fee)
9.10%  p.a.
Self employed, with commitment fee. 9.25% p.a.(without commitment fee)

Fees and charges

There are no prepayment charges for a Smart Home loan.

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

Commitment fees: Up-to 1% fees on amount above 25% of the Smart Home loan with Commitment Fee/Smart LAP with Commitment Fee sanctioned amount. In the event if the excess funds in the Smart Home loan with Commitment Fee/Smart LAP with Commitment Fee account are more than 25% of the Smart Home Loan with Commitment Fee/Smart LAP with Commitment Fee sanctioned amount ('threshold limit'), then the bank may at its sole discretion charge a Non-utilization/Commitment fee of 1% p.a. on the balance amount maintained over and above the threshold.

Example – If Non- utilization/Commitment fees is 1%, original sanctioned Smart loan amount is INR2,000,000 and limit defined as 25% i.e. INR500,000. In this scenario if the fund in the Smart Home loan with Commitment Fee/Smart LAP with Commitment Fee account is INR600,000, then the Non-utilization/Commitment fees of 1% will be charged on INR100,000. (This is for illustration purpose only) 

Conversion fees: INR 5,000 + applicable taxes are payable at the time of converting the loan from Normal to Smart, Smart to Normal or within different variants of Smart loan.

Note: 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 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, the amount will be credited to the Smart Home account and will impact the available balance in the account.

Read more details on the applicable fees and charges.

The security documents need to be stamped as per the local stamp duty laws, please speak to your Relationship Manager regarding the stamp duty payable on your documents.


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 INR 600,000,000
  6. Maximum tenure (in years) 20 years. For salaried applicants 25 years


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.

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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 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 customer’s relationship with HSBC, city of property and property type. Loan amount of upto INR 600,000,000 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.

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.

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.

In adherence to RBI’s Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022, debit cards are not issued for Smart home and Smart LAP accounts.

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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