- Loan Against Property
Loan is offered to applicants against their residential property. The features of the loan are as below:
- Loans are granted for up to Rs.10 crores which is a considerable amount that can be utilized by the customers for the required purpose.
- The minimum amount of loan available to an applicant is Rs.3 lakhs.
- The repayment tenure is up to 15 years and any tenure can be chosen by applicants based on their affordability as long as it is within the maximum tenure of 15 years
- The bank charges a floating rate of interest on Home Loans. The floating rate of interest is subject to change hence EMI payable amounts can vary.
- Before applying for a property loan from HSBC, use a loan against property EMI calculator to specifically calculate your EMI. You will need three main elements to get this number: tenure of loan, rate of interest and the total of the loan amount.
- The documentation required under the loan scheme is simple and easily available with all applicants making the loan process hassle-free
- The 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 account / NRO Account / inward remittance / liquidation of FCNR / through money obtained from sale of immovable property based on which the loan was granted and through any close relative’s bank account. If repayment is done through using a channel apart from the linked repayment account, a special Declaration/Loan request Form will need to be submitted.
- Smart Loan Against Property
Smart loan against property is a loan against property option from HSBC Bank wherein the interest payments can be reduced by opting for the loan through a smart LAP Account. The features are:
- Loans are issued from Rs. 3 lakh to Rs. 10 crore.
- The repayment tenure is up to 15 years and any tenure can be chosen by applicant within the maximum limit of 15 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 interest rate changes which in turn alters the Equated Monthly Instalment to be paid.
- The loan is operated through a Smart LAP Account which operates similar to a Current account wherein the loan amount disbursed is like an overdraft facility on the account. If the customer makes deposits into this loan account with sums over and above the EMI payments, the excess payments stand deducted from the outstanding loan principal and interest charges will be incurred only on the residual amount. Thus a borrower may save on interest payments during the entire loan tenure.
- The EMI payments may be made using ECS and Standing Instructions on the bank account or on the basis of post-dated cheques.
- In case of NRI borrowers the repayment mode is debit to the NRE account / NRO Account / inward remittance / liquidation of FCNR / through sales proceeds of immovable property on which the loan was granted and through any close relative’s bank 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
- The applicant can make pre-payments under the loan but only after 6 months of loan disbursal.