HSBC Loan offers loan amounts of up to INR 30 crores at interest rates starting at 8.60% and a repayment period of up to 25 years. HSBC Bank provides an overdraft facility known as Smart Home Loan to its existing home loan borrowers.
HSBC Home Loan – A Snapshot |
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| Interest rates | 8.60% p.a. onwards |
| Loan amount | Up to INR 30 crore |
| Repayment tenure | Up to 25 years |
| Processing fee | 1% of the sanctioned loan amount or INR 10,000, whichever is higher + applicable taxes |
Interest Rates
Below mentioned are the interest rates to apply for HSBC Home Loan:
| HSBC Home Loan | For salaried: 8.75% p.a.
For self-employed: 8.85% p.a. |
| Switch to HSBC (Balance Transfer) | 8.60% p.a. onwards |
| Smart Home Loan (Overdraft) | For salaried:
9.00% p.a. (with commitment fee) 9.40% p.a. (without commitment fee) |
| For self-employed:
9.10% p.a. (with commitment fee) 9.50% p.a. (without commitment fee) |
Eligibility Criteria
Below mentioned are the eligibility criteria to apply for HSBC Home Loan:
- Minimum net Income INR 500,000 p.a. (salaried) or INR 750,000 p.a. (self-employed).
- Minimum age (in years) 21.
- Maximum age (in years) on maturity of loans 58 (salaried), 60 (public limited/government employees), or 65 (self-employed).
- Minimum loan amount INR 300,000.
- Maximum loan amount INR 400,000,000.
- Maximum tenure (in years) 20 years. For salaried applicants 25 years.
Processing Fees & Charges
Below mentioned are the processing fees & charges to apply for HSBC Home Loan:
Processing fee
HSBC Bank charges a nominal processing fee of up to 1% of the sanctioned loan amount or INR 10,000, whichever is high, plus applicable taxes.
Prepayment charges
| Floating rate home loan | NIL |
| Fixed-rate home loan | Up to 25% of the loan amount sanctioned in every financial year: NIL For amounts more than 25% of the loan amount sanctioned in every financial year: 3% of the amount prepaid |
Other fees and charges
| Copy of property documents | INR 500 |
| Delayed installments/SI dishonor | INR 250 per instance |
| Penal interest | 2% over and above the existing rate charged |
| Conversion fee | 0.50% of the limit outstanding or the current account limit whichever is higher + taxes |
Why Choose an HSBC Home Loan?
Below mentioned are the reasons to opt for HSBC Home Loan:
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Loan Requirement:
A loan can be availed of an amount ranging from INR 3,00,000 to INR 4,00,000,000.
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Property Types:
In the case of ready properties & under construction properties approved by HSBC, loans are available to Resident Indians and Non-Resident Indians (NRIs). The NRI applicants must have a local co-applicant or a local contact person.
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Loan Tenure:
A loan can be availed for a period of up to 25 years in the case of salaried applicants and up to 20 years in the case of self-employed customers.
What is the EMI Calculator?
EMI Calculator is basically an online calculator that allows one to calculate the EMI easily. While planning a home loan, the very first thing an applicant looks for is the “Interest Rate” at which the loan can be borrowed and the “Loan Period”.
All that is required is to enter the preferred loan amount, the interest rate, and the loan tenure.
What is the EMI formula used for calculation?
Below mentioned is the formula to calculate the amount of EMI i.e. Equated Monthly Installment with the help of the HSBC Home Loan EMI calculator:
EMI = [P x R x (1+R) ^ N] / [(1+R) ^ N-1] where,
P = Principal Loan Amount
R = Monthly Interest Rate
N = Number of Monthly Installments
Documents Required
Below mentioned is the list of documents required to apply for an HSBC Home Loan:
KYC Documents
- Completed application form with passport-size photograph
- Identity Proof (any one): Passport/ Voter ID/ Driving License/ PAN Card/ Aadhaar Card
- Residence Proof (any one): Passport/ Voter ID/ Driving License/ Society outgoing bill/ Electricity bill/ Water bill/ Telephone bill/ Gas bill (pipeline connection only)/ Property tax bill/ Domicile certificate with address issued by Municipal Corporation
- Age Proof (any one): Passport/ Driving License/ PAN Card
Income Documents for Indian Resident
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For salaried individuals:
- Latest 3 months’ salary slips showing statutory deductions
- Bank statements for the last 3 months showing the last 3 salary credits
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For self-employed individuals:
- Acknowledged IT returns for the last 2 years (including e-acknowledgement)
- P&L account, balance sheet certified/ audited by a CA, and computation of income for the last 2 years with all annexures and auditor’s report
- Primary bank account statements for the last 6 months
- For Partners of the partnership firm, additionally, Partnership Deed is required
- For Directors of the Private Limited companies additionally required: Shareholding Pattern or Memorandum and Articles of Association duly attested by a CA and a List of Directors
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For self-employed professionals/Consultants:
- Acknowledged IT returns for the last 2 years (including e-acknowledgement)
- P&L account, balance sheet certified/ audited by a CA, and computation of income for the last 2 years with all annexures and auditor’s report
- Primary bank account statements for the last 6 months
Income Documents for Non-resident Indians (NRI)
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For salaried:
- Copy of valid Indian passport showing Visa stamps or copy of foreign passport/equivalent documents
- Copy of valid Visa/work permit/equivalent documents supporting the NRI status of the applicant account holder
- Latest contract copy evidencing salary/salary certificate/wage slips
- Overseas bank account statements for the last 3 months showing salary credits
- 3 months of NRE/NRO account statements
- Local bureau report of the country/region where the customer is based
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For self-employed:
- Trade license or equivalent document
- 6 months of overseas bank account statements and NRE/NRO account statements
- Computation of income, P&L account, and balance sheet for last 3 years certified by a CA/CPA or any other relevant authority as the case may be (or equivalent company accounts)
- Passport copy with valid Visa stamp
- Brief profile of the applicant and business in the specified format
- Local bureau report of the country/region where the customer is based
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For Merchant Navy:
- Latest contract copy. If on ‘home port’ for more than 6 months this year, a future contract copy is required
- Latest Continuous Discharge Certificate (CDC) for 3 years’ employment proof
- Copy of passport for proof of identity
- Primary bank account statements for the last 3 months
- Local bureau report of the country/region where a customer is based (applicable if country/region of residence is other than India)
