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Smart Loan Against Property

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

Why choose a Smart Loan Against Property?

You can raise funds against your residential or commercial property with Smart Loan Against Property (Smart LAP) from HSBC.

 

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

  • Loan requirement - Loans up to INR 400,000,0001

  • Loan tenure - Tenor of up to 15 years

Interest rates

Floating rates. Speak to a relationship manager for more details.

9.40%  p.a.

Interest rate, with commitment fee

9.65% p.a.

Interest rate, without commitment fee

Save on Interest Payments

Interest rates

Normal LAP and Smart LAP comparison

Loan Details

Normal LAP

Smart LAP*

Loan Amount (INR)

5,000,000

5,000,000

Interest Rate (p.a.)

8.55%

12.75%

Original Loan Tenure

15 years

15 years

EMI (INR)6

49,384

50,923

Actual EMI's Paid

180

146

Total Interest (INR)

3,829,437

2,377,520

Savings in Interest (INR)

N/A

1,451,917 (approx 40%)

Normal LAP and Smart LAP comparison

Loan Details

Loan Amount (INR)

Normal LAP

5,000,000

Smart LAP*

5,000,000

Loan Details

Interest Rate (p.a.)

Normal LAP

8.55%

Smart LAP*

12.75%

Loan Details

Original Loan Tenure

Normal LAP

15 years

Smart LAP*

15 years

Loan Details

EMI (INR)6

Normal LAP

49,384

Smart LAP*

50,923

Loan Details

Actual EMI's Paid

Normal LAP

180

Smart LAP*

146

Loan Details

Total Interest (INR)

Normal LAP

3,829,437

Smart LAP*

2,377,520

Loan Details

Savings in Interest (INR)

Normal LAP

N/A

Smart LAP*

1,451,917 (approx 40%)

Interest rates are merely indicative and can change from time to time. 

*Assuming INR 15,000 is deposited in the Smart LAP account over and above the EMI every month. 

Fees and charges

There are no prepayment charges for a Smart LAP loan.

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.

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.

This graph shows with a Smart loan against property your equated monthly instalment are significantly reduced, and the overall amount you pay at the end of the loan is also significantly less. This is based on the scenario example given. Please refer to the terms and conditions at the bottom of this page.
This graph shows with a Smart loan against property your equated monthly instalment are significantly reduced, and the overall amount you pay at the end of the loan is also significantly less. This is based on the scenario example given. Please refer to the terms and conditions at the bottom of this page.

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 INR 400,000,000
  6. Maximum tenure (in years) 15 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.

Apply for a Smart 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 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 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.

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.
 

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.

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.

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