HSBC Loan Against Property 2020 | |
| Interest Rate | 8.80% onwards |
| Loan Amount* | Up to Rs. 10 Crore |
| Loan Tenure | Up to 15 years |
| Processing Fees | Up to 1% of the loan amount + applicable taxes |
Note: The figures given in the table are indicative and are subject to change as per changes in HSBC Bank or RBI policies. Also, the loan amount depends on city of property and property type.
HSBC Bank offers loan against property to help both salaried and self-employed individuals to raise funds against their residential property. The loan is offered at an attractive interest rate starting at 8.80% per annum. Both salaried and self-employed can avail the mortgage loan to meet their personal and business financial requirements.
Under the loan against property product, HSBC Bank offers another variant – SmartLAP. This product variant allows borrowers to save on interest payments and in so doing reduce loan tenure. Your SmartLAP will be operated through a SmartLAP account, which will act as a current account with an overdraft limit equal to the amount of the loan disbursed. Your SmartLAP account would be your loan account. The interest rate offered under this loan scheme is 8.95% onwards.
HSBC Loan Against Property Features & Benefits
- Floating interest rates starting at 8.80% p.a.
- High loan value of up to Rs. 10 crore
- Maximum loan repayment period of up to 15 years
- Simple documentation
Check Also: Other Benefits of LAP
HSBC Loan Against Property Interest Rates
HSBC Bank offers loan against property at floating rate of interest starting at 8.80% per annum. The HSBC loan against property interest rates are linked to Repo Rate Linked Lending Rate (RLLR), which is an external benchmark (in this case, repo rate) linked lending rate for mortgage loans. Any change in the benchmark rate will have a corresponding impact the HSBC loan against property interest rate.
| Product Variant | Interest Rates | |
| HSBC Loan Against Property | 8.80% p.a. | |
| HSBC SmartLAP | 8.95% p.a. (with commitment fee) | 9.20% p.a. (without commitment fee) |
HSBC Loan Against Property Processing Fees & Other Charges
| Particulars | Charges |
| Processing Fee | A total of 1% of the loan amount sanctioned or Rs. 10,000, whichever is higher |
| Prepayment Charges (lock-in period of 6 months) | For Floating Rate Loan Against Property: Nil For Fixed Rate Loan Against Property:● For up to 25% of the loan amount sanctioned in every financial year: Nil ● For amount more than 25% of the outstanding loan amount or more than one prepayment: 4% of amount prepaid |
| Annual Fee (only applicable for Smart LAP) | 1% of limit outstanding payable on each loan anniversary 4 till the loan is completely repaid. |
| Request for copy of property documents held with the bank | Rs. 500 (Not applicable for HSBC Premier Customers) |
| For Delayed installments on account of cheque, ECS or SI (standing instruction) dishonors | Rs. 250 per instance |
| Penal interest on the delayed installments on account of cheque or SI | 2% over and above the existing interest rate charged on the loan account for the amount which is overdue |
| For conversion from MCLR/Base Rate/Retail Lending rate to RLLR | Up to Rs. 5,000 |
| Commitment Fees | ●Up to 1% fees on amount above 25% of the SHCF/SLCF sanctioned amount ●If the Excess Funds in the SHCF/SLCF account are more than 25% of the SHCF/SLCF sanctioned amount (‘Threshold limit’), then the Bank may at its sole discretion charge a Non-utilization/Commitment fee of 1% p.a. on the balance amount maintained over and above the Threshold |
Note:
- All applicable taxes will be levied in addition to the mentioned charges
- Fixed rate is not offered for SmartLAP
- Switching is not permitted from LAP to SmartLAP and vice versa
- From floating rate to fixed rate and vice versa (Applicable if Fixed Rate is offered)
- Switching from fixed rate to floating rate is allowed only after completion of fixed term
- The prepayment charges are applicable only during the fixed rate tenure. If you switch your loan to floating rate, prepayment charges will not be applicable
- For processing prepayment requests, customers are required to send HSBC a written instruction communicating their desire to prepay with their intent of wanting to reduce the loan tenure or EMI. In case no clear instruction is received to reduce loan tenure or EMI, HSBC will by default reduce the loan tenure basis the prepayment amount received
- In case excess funds/amounts are received towards the loan account without any written instructions from the customer to prepay, such excess amounts will be apportioned towards the principal amount of the loan
HSBC Loan Against Property EMI Calculator
- Before applying for HSBC mortgage loan, use Paisabazaar’s loan against property EMI calculator to know your EMI. Doing so will help you in planning your finances beforehand. The online loan calculator is simple for anyone to use and requires only three loan details to give you accurate results – tenure of loan, rate of interest and the principal amount. Once you enter the details, the loan calculator will instantly provide you results along with other details such as amortization table, total interest payable, total principal amount, etc. Click to know your loan against property EMI.
HSBC Loan Against Property Eligibility Criteria
To qualify for a HSBC loan against property, the following criteria applies:
| Borrower Profile | Any Resident Indian Individual (salaried/ self-employed) can apply |
| Age Limit | 21 – 65 years |
| Credit Score | Preferably 750 and above |
| Eligible Loan Amount | LAP: Rs. 3 Lakh – Rs. 10 Crore SmartLAP: Rs. 5 Lakh – Rs. 10 Crore |
HSBC Loan Against Property Documents Required
| Proof of Identity (Any one) | ●Passport ●Election/Voter’s ID ●Permanent driving licence ●Permanent Account Number (PAN Card) ●Aadhaar Card |
| Proof of Address (Any one) | ●Passport ●Election/Voter’s ID ●Permanent driving licence ●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 |
| Proof of Age (Any one) | ●Passport ●Permanent driving licence ●PAN Card |
| Proof of Income for Salaried | ●Latest 3 months’ salary slips showing statutory deductions ●Bank statements for last 3 months showing last 3 salary credits |
| Proof of Income for Self-employed individuals/partnership firm (loans will be extended in favour of partners)/private limited companies (loans will be extended in favour of directors) | ●Acknowledged IT returns for last 2 years (including e-acknowledgement) ●P&L account, balance sheet certified/audited by 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 partnership firm additionally partnership deed is required ●For private limited companies additionally required: ●Shareholding pattern or Memorandum and Articles of Association duly attested by a CA ●List of directors |
| Proof of Income for Consultant/Self-employed Professional | ●Acknowledged IT returns for last 2 years (including e acknowledgement) ●P&L account, balance sheet certified/audited by CA and computation of income for the last 2 years with all annexures and auditor’s report ●Primary bank account statements for last 6 months |
| Property Documents | As required by the bank |
Note: The above list of documents is indicative and the bank, as per its policy and requirement, may request for additional documents.
Check Also: Documents Required for Loan Against property
How to Apply for HSBC Loan Against Property
To apply for HSBC loan against property, you can:
- Visit an HSBS Bank branch nearby your area
- Call at HSBC Toll-free Customer Care Number 1800 266 3456/1800 120 4722
- You can also apply online at the bank’s website
Frequently Asked Questions (FAQs)
1. How can I repay HSBC mortgage loan?
You can make your HSBC mortgage loan repayment through Standing Instruction/Letter of authority to debit your HSBC savings/current account for the Equated Monthly Installment (EMI).
2. How do I get to know the principal / interest breakup of the EMI paid?
HSBC Bank provides you a track record which gives you the breakup of your monthly payment and principal amount. You can visit the nearest branch or can use the phone banking or internet banking to request for your track record for your loan against property.
3. What is the minimum and maximum amount of loan available for a loan against property?
The maximum and minimum amount for regular HSBC loan against property ranges from Rs. 3 lakh to Rs. 10 crore. The eligible loan amount for HSBC SmartLAP ranges from Rs. 5 lakh to Rs. 10 crore. The final loan amount, however, will depend mainly on the property type and the city where it is located.
4. HSBC Bank has launched a SmartlAP (smart loan against property). Can the amount which is already taken for a loan against property be switched with SmartLAP?
Post disbursement of the principal amount, a loan against property cannot be converted into a SmartLAP.
5. What is the department to resolve queries regarding loan against property or any other assistance required?
You can always visit the nearest HSBC branch or can use their phone banking or internet banking facility to reach out to your relationship manager.