HSBC is a renowned name for various Loans. Talking about home loans, it is easy for the borrowers to take home loans from the HSBC Bank. HSBC Bank offers home loans starting from 8.65% per annum with maximum repayment period of 25 years. The loan should be repaid completely by the time applicant reaches 60 years of age as compared to Non-Government/Public employees whose age is limited to 58 years only.
HSBC Bank is a good fit for you if?
If You’re a Government/Public Employee – Being a Government or Public Sector Employee, you get a longer age criteria than other salaried employee. HSBC Bank offers home loans that starts from 8.65% per annum for 25 years repayment period max. The loan should be completely repaid by the time applicant reaches 60 years of age as compared to Non-Government/Public employees whose age is limited to 58 years only.
HSBC Bank Home Loan at a glance
| Annual Interest Rate | 8.75% – 9.30% |
| Loan Term | Up to 25 Years |
| Loan Amount | Rs. 3 Lacs – Rs. 10 Crores. |
| Time of Funding | Within 9 days of Approval |
| Pre-Payment Charges | Zero to 3% |
Why Choose HSBC Bank?
Prepayment Allowed after First 6 EMIs – Prepayment is permitted after a minimum of 6 months following disbursal of the loan.
Zero Prepayment Charges on Floating Rate Home Loans – doesn’t charge any prepayment fee for home loans availed at floating rate loans or if borrower has switched to floating rate from fixed rate.
Interest Calculation on Daily Reducing Balance – HSBC calculates applicable interest rate on home loans using Daily Reducing Balance method. The interest rate being calculated on daily reducing balance is usually lesser than interest calculated on Monthly reducing Balance. The calculated interest then will be applied on your home loan account on monthly basis.
What to watch out for?
High Processing Charges – Processing charges are equal to 1% of the loan amount, subject to min Rs. 10,000. Out of which Rs. 5,000 will be paid upfront and not refundable.
Min Annual Income Should be Rs. 5 Lacs – Minimum net annual income of an applicant should be at least Rs. 5 Lacs as per the latest ITR, in case of a salaried applicant. However, the minimum income criteria increases to Rs. 7.50 Lacs in case of Self-Employed.
Available at Select Locations – Available only at Mumbai, New Delhi (NCR), Bengaluru, Pune, Chandigarh, Jaipur, Ahmedabad, Chennai, Hyderabad and Kolkata.
Compare HSBC Bank Home Loans to Other Banks
| Bank Name | HSBC | Bajaj Finserv | Tata Capital |
| Typical APR | 8.75% – 9.30% | 8.60% – 10.15% | 8.35% – 915% |
| Loan Term | Up to 25 years | Up to 25 Years | 1 Year – 30 Years |
| Maximum Lending Amount | Rs. 10 Crores | Rs. 10 Lacs – Rs. 10 Crores | Rs. 10 Crores |
| Processing Fee | 1% of the loan amountMin Rs. 10,000 | Upto 1.20% of the loan amount | 0.50% of the loan amount |
| Time to Funding | Within 9 days of Approval | Within 72 hours of Approval | |
| Pre-Closure | Zero to 3% | Nil | Zero to 2% of the outstanding amount |
Am I Eligible?
- Minimum Net Annual Income of a salaried applicant should be Rs. 5 Lacs and
- Rs. 7.50 Lacs for a Self-Employed Applicant.
- Minimum Age of an applicant should be at least 21 years at the time of the loan application.
- Maximum Age of a salaried applicant should not be more than 58 years, 60 years for public limited/government employees, and 65 years for self-employed applicants at the time of loan maturity.
Loan Offerings
HSBC Home Loan
- Home loan for ready properties, select under construction properties approved by HSBC, purchase of plot of land, self-construction and home improvement.
- Avail funds from min Rs. 3 Lacs to max Rs. 10 Crores.
- Tenure upto 20 years for non-salaried and for salaried customers up to 25 years.
- Interest rate equal to 8.75% per annum for salaried borrowers and 8.85% per annum for non-salaried.
- Loan amount of Rs. 5 Lacs to Rs. 10 Crores for ready and under-construction properties in Mumbai, New Delhi (NCR). Rs. 3 Lacs to Rs. 7,50 Crores 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). Rs. 3 Lacs to Rs. 3 Crores for purchase of plot of land in Mumbai and Delhi. Rs. 3 Lacs to Rs. 3 Crores for purchase of plot of land in Bengaluru, Chennai, Pune, Ahmedabad, Chandigarh, Jaipur and Hyderabad. Rs. 3 Lacs to Rs. 1 Crore for self-construction loan and Rs. 3 Lacs to Rs. 25 Lacs for home improvement loans for properties in all sourcing cities.
- For HSBC Premier customers, maximum loan amount of Rs. 10 Crores for all sourcing cities for ready and under construction properties. The minimum agreement and market value of the property to be funded for Mumbai and Delhi is Rs. 25 lakh and for all other sourcing cities is Rs. 15 lakh.
HSBC Smart Home Loan
- Home Loan for for ready properties, select under construction properties approved by HSBC, self-construction and home improvement. NRI applicants must have a local co-applicant or a local contact person.
- Smart Home is operated through a Smart Home account that acts as a Current Account with an overdraft limit equal to the amount of the loan disbursed.
- 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.
- Avail funds from Rs. 5 Lacs to Rs. 10 Crores.
- Tenure upto 20 years for non-salaried and for salaried customers up to 25 years.
- Applicable floating rate interest rate is equal to 8.90% per annum with commitment fee and 9.20% per annum without commitment fee for Salaried.
- Applicable floating rate is equal to 9% per annum with commitment fee and 9.30% per annum without commitment fee for Self-Employed.
- There are no prepayment charges for a Smart Home Loan.
- A total of 1% of the loan amount sanctioned or Rs.10,000, whichever is higher, will be applicable as Processing Fee). The fee will be collected in two parts: Rs.5,000 is to be paid upfront along with the loan application and the balance Processing Fees amount is to be paid before disbursal of the loan. Processing Fees paid is non-refundable.
HSBC Bank Home Loan Rate of Interest
| Home Loan Type | Applicable Interest Rate |
| HSBC Home Loan | 8.75% – 8.85% per annum |
| HSBC Smart Home Loan | 8.90% – 9.30% per annum |
How to Apply for HSBC Bank Home Loan?
At HSBC Branch
After I Apply?
Through Customer Care
- Dial 18602662667 / 18605002255 from your registered mobile number.
Once I’m Approved?
Fees & Penalties
| Type of Charges | Applicable Charges |
| Processing Charges | 1% of the loan amountMin Rs. 10,000 (Rs.5,000 are paid as upfront) |
| Foreclosure ChargesAllowed after first 6 EMIs | NILFor Floating Rate Home Loans NILFor Fixed Rate Home Loans where foreclosure amount is upto 25% of the home loan amount sanctioned in every financial year. 3% of amount prepaidFor Fixed Rate Home Loans where foreclosure amount more than 25% of the home loan amount sanctioned in every financial year. |
FAQs
How do I contact HSBC Customer Support?
For regular customers – 18602662667 / 18605002255 for resident indians and 04067173401 / 08049089631 for overseas customers.
For HSBC Advance Customers (toll-free) – 18002673456 /18001022208 for resident indians and 04067173404 / 08049089634 for overseas customers
For HSBC Premier Customers (toll-Free) – 18002663456 / 18001034722 for resident indians and 04067173406 / 08049089636 for Overseas customers
What is the MCLR rate applicable on home loan?
Floating Rate Home loan in HSBC is linked to 3 Months MCLR Rate which is equal to 8.45%
Loan Repayment Options?
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 form.