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Home Loan

HSBC, the popular name for Hong Kong and Shanghai Banking Corporation, offers home loans to individuals including both Indian Residents and NRIs (Non-Resident Indians), so that they can buy a home or build their own dream house. There are currently two types of loans offered by HSBC Bank under the Home Loan category – each with different features and any one can be chosen by the applicant to avail a Home Loan.

Types and Features of HSBC Home Loans

  • New/NRI Home Loan – a housing loan scheme for buying or constructing a home with the following features:
     
  • HSBC Bank offers home loan schemes for a minimum amount of Rs.3 lakhs to a maximum amount of Rs.10 crores. The applicant can avail the loan for any amount as long as it is within the minimum and the maximum limit as set by the bank.
  • Home Loan available at HSBC Bank is given to Resident Indians who have a permanent residence in India and also to Non-Resident Indians or NRIs who do not have a permanent residence in India. NRI applicant should have a local co-applicant who should be a resident individual and also a local contact person with whom the bank can contact for any queries
  • HSBC Bank Home Loans can be availed to buy a ready property, a select property under construction which has been approved by HSBC, for purchasing a plot of land to construct a house, self-construction of a house and also for home improvement which includes renovation and refurnishing the existing house.
  • For salaried applicants, HSBC Home loan repayment tenure is for a maximum of 25 years but for other applicants the loan tenure is limited to a maximum of 20 years.
  • The bank generally charges a floating rate of interest on HSBC Home Loans. The rate of interest is based to the Base Rate which may fluctuate. In case of any fluctuation in the Base Rate, the interest rate changes which in turn alters the Equated Monthly Instalment to be paid.
  • Sometimes, the bank may also charge a Fixed Rate of interest for HSBC Limited Home loans with select loan tenures. To know about the fixed rates of interest, the customer should contact his Relationship manager or visit the bank branch.
  • HSBC Bank Housing loans may be repaid through Equated Monthly Instalments (EMIs). One of the preferred ways to pay off the HSBC Limited Home loan is by using PDCs (post-dated cheques) but such payment may also be paid through Electronic Clearing Systems (ECS) or SI (standing instructions) to any bank allowing them to debit the loan amount from the existing HSBC savings account.
  • For NRIs the preferred repayment mode is debit of their NRE/NRO Accounts or inward remittance or FCNR liquidation or by using the sales proceeds of immovable property on which the HSBC Home loans were granted. The repayments can also be conducted through any close relative’s banking account. If repayment is done through any other channel other than the linked repayment account, a Declaration or a Loan request Form needs to be submitted by the applicant to the bank.
  • In case of HSBC Bank Housing loan for properties which are under construction, the loan amount is disbursed in tranches and interest is charged only on the amount of HSBC Home loans disbursed till that time. As long as the loan is not completely disbursed, only the pre-equated Monthly Installments are required to be paid off. The actual HSBC Bank Home loan EMI payments will start only after the loan is fully disbursed.
     
  • Smart Home – a home loan from HSBC Bank which acts like a Current Account and enables the borrower to save on the interest payments which also reduce the tenure of the loan. The features of the Smart Home loan product offered by the bank are as follows:
     
  • The home loan offers a Smart Home Account which acts as a Current account where the amount of loan disbursed is treated like an overdraft facility. The customer can make additional deposits in the loan account over and above the EMI payments. These deposits will be deducted from the outstanding principal amount of loan and the interest will be calculated on the reduced balance. Thus the borrower can save interest payments on his loan through this facility.
  • The Home Loan scheme can be availed for a minimum amount of Rs.5 lakhs to a maximum amount of Rs.10 crores. The applicant can avail the loan for any amount as long as it is within the minimum and the maximum limit as set by the bank.
  • Loans are available to Resident Indians who have a permanent residence in India and also to Non-Resident Indians or NRIs who do not have a permanent residence in India. NRI applicant should have a local co-applicant who should be a resident individual and also a local contact person with whom the bank can contact for any queries
  • Loans can be availed to buy a ready property, a select property under construction which has been approved by HSBC, for purchasing a plot of land to construct a house, self-construction of a house and also for home improvement which includes renovation and refurnishing the existing house.
  • For salaried applicants, the loan repayment tenure if for a maximum of 25 years but for other applicants the loan repayment tenure is limited to a maximum of 20 years
  • The bank charges a floating rate of interest on Home Loans. The floating rate of interest is linked to the Base Rate which may fluctuate. In case of any fluctuation in the Base Rate, the HSBC Home Loan interest rate changes which in turn alters the Equated Monthly Instalment to be paid. There is no fixed rate of interest applicable under this loan scheme
  • The HSBC Home loan is repaid through Equated Monthly Instalments (EMIs). The loan is generally paid through post-dated cheques but can also be paid through Electronic Clearing Systems (ECS) or standing instructions to the bank to debit the amount of loan through the existing HSBC savings account.
  • For NRIs the repayment mode is debit to the NRE/NRO Accounts or inward remittance / FCNR liquidation /through money received when immovable property for which the loan was granted is sold. The payment can also be made through a close relative’s bank account. If repayment is made through a channel apart from the linked repayment account, a Loan request Form or Declaration in the prescribed format is to be submitted.
  • In case of loan for properties which are under construction, the loan amount is disbursed in tranches and interest is charged only on the amount of loan disbursed. As long as the loan is not completely disbursed, the pre-equated Monthly Installments are required to be paid and once the loan is fully disbursed, the actual EMI payments will start.

Eligibility Criteria for HSBC Home Loan

To avail a HSBC Limited Home loan, the following home loan eligibility criteria should be met:
 

  • HSBC Home Loans are available to both resident Indian individuals and NRIs.
  • The minimum net income to apply for a HSBC home loan is Rs.5 lakhs/year for salaried employees and min. Rs.7.5 lakhs yearly for the self-employed.
  • The applicant for home loan must have completed 21 years of age.
  • The maximum age of salaried applicant on the date of home loan maturity should not exceed 58 years, while 60 years is the limit if applicant is an employee of a public limited company or Government employee and 65 years at time of loan maturity is the allowed limit for self-employed individuals.
  • The property against which loan is sought should be insured with an insurance company against loss by fire, earthquake, flood and any other damages. HSBC should be the beneficiary under such an insurance policy.

Documents Required

The following documents are an indicative list of papers/ licenses, etc. that are required to be submitted at the time of loan application which should be self-attested.
 

  • Loan Application Form along with 1 passport sized photograph
  • Bank Accepted Identity Proof
  • Copy of PAN Card
  • Address Proof
  • Age Proof Documents
  • Income Proof documents such as ITR and Salary Slip/Certificate

In case of HSBC NRI Home Loans the following additional/alternate documents are required:
 

  • For salaried NRIs – Indian Passport with overseas stamps/ copy of Visa/Work Permit. Overseas salary stub and NRE/NRO Account deposit information.
  • Merchant Navy NRIs – Employment proof documents and report from local bureau. 
  • Self-Employed NRIs – Statement of bank account (Overseas/NRE/NRO) and relevant operating licenses, P&L statements, etc. Along with valid Indian Passport with VISA etc.

Home Loan Turn-Around-Time (TAT)
 

Home Loan

TAT

Pre-approval Application Processing

Within 5 days of submission of complete documents

Valuation and Legal Evaluation of the Property

From 3 days onwards of submitting copies of complete property documents

Post-approval Loan Processing

Within 4 days of submission of complete documents

Loan Disbursal

Within 2 days after submission of duly stamped and completed loan agreement and other required documents

HSBC Limited Home Loan Interest Rates

Floating Rates of Interest for HSBC Housing Loans
 

Type of Individual

Regular Home Loan

Smart Home Loan

Salaried

9.35% per annum

9.95%

Self-employed

9.45% per annum

10.00%


Fees and Charges for Home Loan from HSBC Limited
 

Description

Charges

Request for copy of property documents held by the bank

Rs.500

Request for change of EMI date or rescheduling of loan

Rs.300

Request for daily interest calculation details

Rs.300

Request for Duplicate Amortization Schedule

Rs.300

Request of Duplicate Welcome Pack copy

Rs.300

Re-pricing of an active account

0.5% of the outstanding loan amount

Request for change of SI or change of repayment mode

Rs.500

Copy of Track Record

Rs.250 per statement

Copy of Credit Information Report (CIR)

Rs.50

Loan Processing fees

A total of 1% of the loan sanctioned or Rs.10, 000 whichever is higher. The fee is collected once upfront @Rs.5000+service tax and later before loan disbursal

Delayed instalments on account of cheque or SI dishonor

Rs.250 per instance

Penal interest on delayed instalments

2% over and above the rate of interest charged on the loan account

Prepayment charges for fixed rate home loan

NIL for up to 25% of the loan sanctioned every year

3% of prepaid amount if it is more than 25% of home loans sanctioned

Switching Charges form home loan to smart home and vice-versa

NIL If switching is done 1 month prior to loan anniversary

0.5% of outstanding loan amount if done any other time

SARFAESI Charges

At actuals

Other incidental charges

At actuals

Additional features of HSBC Housing Loans scheme

There are some important terms and conditions which one should bear in mind while you apply for a HSBC Limited Home Loan:
 

  • The repayment of the HSBC Bank Home loan instalments can also be done through an existing HSBC savings or current account maintained by the borrower by placing a Standing Instruction on the relevant account. Such accounts also provide other banking benefits and facilities.
  • If the HSBC Bank Home loan is taken for a property which is under construction, the bank would issue the loan in tranches and the customer would be required to make interest payments on the loan amount actually disbursed. These payments are called Pre-equated Monthly Instalments which are payable until the loan is completely disbursed. After the HSBC Bank Home loan is completely disbursed, the applicant would have to pay the calculated Equated Monthly Instalments to repay the loan.
  • The rate of interest which is payable on HSBC Bank Home loans would be mentioned in the Facility Advice Letter which is given at the time of loan sanction. Such interest would also be linked to the Marginal Cost of Fund Based Lending Rate of three months.
  • Every disbursement of the loan tranche would be made only after the applicant requests such disbursal and such a request is supported with the original demand letter from the builder concerned and the disbursal advice letter.
  • The final disbursal would be made when the above mentioned process is followed along with affecting an insurance policy by the applicant where the property would be insured against damages from fire, flood, earthquake and other related damages and HSBC would be the beneficiary in the policy. After the final disbursement is made, the EMI payments would also start.
  • The amount of HSBC Bank Home loan sanctioned would depend on the purpose for which the loan is taken like for ready houses, under-construction houses, buying a plot of land or for self-construction needs. The sanctioned amount would also depend on the location of the property.
  • HSBC Rural Home Loanor HSBC Rural Housing Finance are not available with the bank.

Applying for HSBC Home Loan Online

In keeping with the rising trend of online transactions, one can apply for a HSBC home loan online through our online portal. The process is simple:


Visit our website @www.paisabazaar.com – click the ‘Home Loans’ tab –and fill up the required fields to check eligibility status and then apply for HSBC Bank Home Loans online.


The applicant needs to provide his personal details like name, age, address, occupation, income, etc. which the bank uses to match to the eligibility criteria laid down for availing HSBC bank Home Loans. If the profile of the applicant matches the required eligibility criteria, our executive calls the applicant and guides him or her through the loan procurement process. So, the customer does not have to engage in useless hassles to avail a HSBC Bank Home loan. He or she simply needs to log in to our website, choose the relevant taband fill up the asked details and the loan application process is completed easily.


Along with filling up the required information, the relevant documents would also have to be submitted to complete the home loan application process and successfully avail the HSBC Bank Home Loan. Once the desired documents are submitted, they are cross-checked and once satisfied, the loan would be issued. The online application process is the easiest process to apply for the HSBC Bank Home Loan. One can also visit the bank’s branch but the process becomes lengthy and cumbersome. Through our online portal the application can be done more easily.

HSBC Bank Home Loan
(3.5/5 ) 2 Reviews
Home LoanHome Loan
4/5

Good home loan scheme by HSBC

I am repaying my HSBC home loan scheme since 6 months now. I am very happy with the loan scheme. My loan has very low interest rates without any additional charges. My HSBC home loan is also eligible for tax exemption. I would surely recommend this l..Read more...

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Posted on: Jan 9 , 2017
Home LoanHome Loan
3/5

Satisfied

I have applied for a HSBC home loan scheme and I am overall satisfied with the services provided by the bank. They approved my loan application quickly. I am waiting to receive my loan amount so that I can move in to my own house before march.

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Posted on: Jan 5 , 2017