Home Loans from HSBC
We understand that buying a house is one of the most important decisions in life, for people across the world. We also know that while most people dream of owning a perfect home, achieving that goal can be quite a challenge, especially when it comes to arranging the finance required to make such an expensive purchase.
But you can now fulfill this dream by opting for a Home Loan from HSBC.
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Home Loan Features Benefits
Your dream home, a reality
Loan requirement – Loans ranging from Rs. 3 lakhs 1 upto Rs. 10 crore 1
Loan tenure – Loans are available for tenures upto 20 years and for salaried customers up to 25 years.
Interest rate – We, The Hongkong and Shanghai Banking Corporation Limited, India (HSBC/the Bank) offer Home Loans at floating rate of interest. From time to time we also offer fixed rate for Home Loans for specific loan tenures. For details, if fixed rate special offering is available, the offering features and the applicable terms and conditions reach out to your Relationship Manager or visit the nearest HSBC branch. Click here to know existing rate of interest.
A total of 1% of the loan amount sanctioned or Rs. 10,000, whichever is higher, will be applicable as Processing Fee (plus applicable taxes*). The fee is collected in two parts: Rs. 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.
Loan repayment is through Standing Instruction/Letter of authority to debit your HSBC Savings/Current Account for the Equated Monthly Instalment (EMI).
Non Resident customers can repay home loans by one of the following modes only:
Debit to their NRE Account /NRO Account /Inward remittance / liquidation of FCNR/ sales proceeds of immovable property on which loan was granted / Close relative’s* bank account
If you are repaying the loan through any channel other than your linked repayment account, please enclose the following ‘Declaration / Loan Request Form’
Please seek independent professional tax advice for any tax related issues and implications on/of your loan.
Below example highlights how the interest on your loan is calculated.
Note: Calculations for Rs. 25 lakh at an interest rate of 11.00% p.a. for 20 years. EMI is Rs. 26,165 which consists of interest and principal components as mentioned below:
Note: Rate of interest shown is for illustration and actual interest rate charged to your account may vary. Interest is calculated on daily reducing balance charged on monthly basis. As shown above, the interest for Rs. 25,00,000 at 11.00% p.a. for 1 month is Rs. 23,356. Monthly interest amount = [outstanding loan balance] x [rate of interest] x [no. of days in the month/no. of days in the year].
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.
You can repay the loan by giving Standing Instruction/Letter of Authority to debit your HSBC Savings/Current Account for the Equated Monthly Instalment (EMI).
The HSBC Savings/Current Account used for the repayment of the loan comes without the requirement to maintain any minimum balance in the account during the tenure of the loan. You can also avail of the following benefits alongside your HSBC Savings/Current Account:
- Free unlimited access to HSBC ATMs in India along with five free transactions in a calendar month at other banks’ ATMs in India
- Withdrawal limit of Rs. 25,000 at HSBC ATMs and purchase limits of Rs. 40,000 at merchant establishments in India
- Free access to Internet Banking and PhoneBanking services
If the initial loan amount is greater than Rs. 30,00,000, you can avail of benefits of HSBC Advance, without the requirement to maintain any minimum balance in the account during the tenure of your loan. The benefits of HSBC Advance include:
- HSBC Advance Platinum Debit Card with enhanced transaction and withdrawal limits of Rs. 1,00,000 per day along with unlimited ATM transactions at any Visa ATMs in India
- Priority servicing at branches and dedicated 24×7 PhoneBanking
- Access to Wealth Managers HSBC Advance
- Assistance prior to opening HSBC Accounts overseas and access to emergency encashment assistance in select countries
For more details on HSBC Advance, click here
We also offer HSBC Premier with a host of exclusive features and benefits. For more details click here
Loans for Under Construction Property / Interest Servicing Loans
In case of under construction properties the loan is disbursed in tranches and interest will be levied by HSBC only on the amount disbursed. Until the final disbursement of the loan, Pre-Equated Monthly Instalment (Pre-EMI) 5 is payable. The Equated Monthly Instalment (EMI) 6 of the loan starts only when the loan is fully disbursed.