HSBC Bank Loan Against Property

HSBC Bank Loan Against Property Highlights 2023
Interest rates	LAP: 9.75% p.a.
	Smart LAP:
	9.85% p.a. (with commitment fee)
	10.10% p.a. (without commitment fee)
Loan amount	Rs 40 crore
Repayment tenure	Up to 25 years
Processing charges	Up to 1% of the loan amount or Rs10,000, whichever is higher

Note: Interest rates as of 5th June 2023

HSBC Bank Loan Against Property Interest Rates

HSBC Bank offers loans against property at floating interest rates of 9.75% p.a. The final loan against property interest rates offered to the loan applicant would vary according to the credit score, monthly income, job profile, employer’s profile, etc. of the loan applicant.

HSBC Smart Loan Against Property Interest Rates

With commitment fee	9.85% p.a.
Without commitment fee	10.10% p.a.

Compare Interest Rates of Loan Against Property with Top Banks & HFCs

Name of the Lender	Interest Rate (% p.a.)
State Bank of India	10.60-11.30
Bank of Baroda	10.85-16.50
PNB Housing Finance	9.65-13.00
IDFC First Bank	9.00-16.50
HDFC	8.95-10.25
L&T Housing Finance	9.50 onwards
LIC Housing Finance	9.50-11.55
Godrej Housing Finance	9.75 onwards
ICICI Bank	10.85-12.50
Tata Capital	10.10 onwards
Bajaj Housing Finance	8.50-18.00
Axis Bank	9.90-10.35
Kotak Mahindra Bank	9.15 onwards

HSBC Bank Loan Against Property Fees and Charges

Processing fees

Processing fee

1% of the sanctioned loan amount or Rs 10,000 (whichever is higher) The processing fee will be collected in two parts: Rs 5,000+ Taxes is payable upfront with loan application and the balance amount + taxes is payable before loan disbursal.

Prepayment Charges

For floating rates LAP	NIL
For fixed rate LAP	Up to 25% of the outstanding loan amount once in every financial year: NIL
	For an amount in excess of 25% of the outstanding loan amount or more than one prepayment: 4% of Pre-payment amount.
For Smart LAP	NIL

Other fees and charges

Cheque, ECS or SI (standing instruction) dishonors	Rs 250 per instance
Debit card charges	Rs 250 p.a.
Penal interest	2% over and above the existing interest rate charged on the loan account for the amount which is overdue.
Annual fee (only for Smart LAP)	1% of the limit outstanding payable on each loan anniversary till the loan is completely repaid.
For conversion from MCLR/Base Rate/Retail Lending rate to RLLR	Up to Rs 5,000 + taxes
Conversion fee (Normal to Smart, Smart to Normal or within different variants of Smart)	0.50% of limit outstanding or current account limit whichever is higher + taxes
Request for copy of documents held with the bank	Rs 500
Commitment fee	On amount above 25% of the Smart LAP with Commitment Fee:  Up to 1%
	If the excess funds in the Smart LAP with commitment fee are more than 25% of the Smart LAP with commitment fee: 1% p.a. on the balance amount maintained over and above the threshold

Insurance Facility Offered with HSBC LAP And Smart LAP

An LAP loan applicant would have to insure his property with an insurance company against loss by fire, earthquake, floods and other damages with the HSBC Bank, as the beneficiary.

HSBC Bank Types of Loan Against Property

Normal Loan Against Property

• Purpose: To raise finance for meeting various personal and business needs.
• Loan Amount: Up to Rs 40 crore
• Tenure:  Self employed: 15 years and Salaried: 25 years

Smart Loan Against Property

• Purpose: Loan against property offered in the form of overdraft with sanctioned credit limit equal to the loan amount. Borrowers have the flexibility to withdraw from the sanctioned credit limit,  as and when required,  for meeting their personal and business requirements.
• Loan amount: Up to Rs 40 crore
• Tenure: Up to 15 years

HSBC Bank Loan Against Property Eligibility Criteria

For salaried applicants:

• Minimum net income: Rs 5 Lakh
• Minimum age: 21 years
• Maximum age: 58 and 60 (for public limited/ govt employees)

For self-employed applicants:

• Minimum net income: Rs 7.5 Lakh
• Minimum age : 21 years (at the time of loan application)
• Maximum age at the : 65 years (at the time of loan maturity)

HSBC Bank Loan Against Property Documents Required

Common Documents:

• Completed application form with one passport size photograph
• Identity proof (any one): Passport/ Voter’s ID/ Permanent driving license/ PAN Card/ Aadhaar Card
• Residence Proof (any one): Passport/ Voter’s ID/ Driving License/ Society outgoing bill (only from registered societies)/ Electricity/ water/ 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 Salaried individuals:

• Latest 3 months’ salary slips showing statutory deductions
• Bank statements for last 3 months showing last 3 salary credits

Income Documents for Self-Employed Individuals:

• Acknowledged IT returns for last 2 years (including e-acknowledgement)
• P&L account, balance sheet certified/ audited by a CA and computation of income for last 2 years with all annexures and auditor’s report
• Primary bank account statements for 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 List of Directors

Consultant/Self-employed professionals:

• Acknowledged IT returns for last 2 years (including e-acknowledgement)
• P&L account, balance sheet certified/audited by a CA and computation of income for last 2 years with all annexures and auditor’s report
• Primary bank account statements for last 6 months

Income Documents Required for NRI salaried (all documents should be self-attested):

• 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 last 3 months showing salary credits
• 3 months NRE/NRO account statements
• Local bureau report of the country/region where customer is based

Income Documents Required for NRI self-employed (all documents should be self-attested):

• Trade license or equivalent document
• 6 months 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 customer is based

Documents for Merchant Navy:

• Latest contract copy. If on ‘home port’ for more than 6 months this year, 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 last 3 months
• Local bureau report of the country/region where customer is based (applicable if country/region of residence is other than India)

The bank may also ask for additional loan against property documents based on the applicant’s profile.