HSBC Bank Loan Against Property Highlights |
|
|---|---|
| Interest Rate |
LAP:
Smart LAP:
|
| Loan Amount | Rs 40 crore |
| Repayment tenure | Up to 25 years |
| Processing Fees | Up to 1% of the loan amount or Rs 10,000, whichever is higher |
HSBC Bank Loan Against Property Interest Rates
HSBC Bank offers loans against property at floating interest rates starting from 9.75% p.a. and fixed interest rates starting from 14.00% p.a. The actual interest rate offered to the loan applicant may vary based on factors such as credit score, monthly income, job profile, employer’s profile, etc.
With commitment fee - 9.85% p.a.
Without commitment fee - 10.10% p.a.
Also read: Best Loan Against Property Interest Rate
Compare Interest Rates on Loan Against Property for Top Banks & HFCs
| Name of the Lender | Interest Rate (% p.a.) | |
|---|---|---|
| State Bank of India | 10.00 - 11.30 | Apply Now |
| Axis Bank | 10.50 - 10.95 | Apply Now |
| Bank of Baroda | 10.85 - 16.50 | Apply Now |
| ICICI Bank | 10.85 - 12.50 | Apply Now |
| Standard Chartered Bank | Starts from 9.25% | Apply Now |
| HSBC Bank | 9.75 - 14.00 | Apply Now |
| Union Bank of India | 10.45% - 13.10% p.a. | Apply Now |
| PNB Housing Finance | 9.25 - 15.00 | Apply Now |
| IDFC First Bank | 9.00 - 16.50 | Apply Now |
| HDFC Bank Limited | 9.50 - 11.00 | Apply Now |
| L&T Housing Finance | 9.50 onwards | Apply Now |
| LIC Housing Finance | 9.50 - 11.55 | Apply Now |
| Godrej Housing Finance | 9.75 onwards | Apply Now |
| Indiabulls Finance | 9.75% p.a. onwards | Apply Now |
| Tata Capital | 10.10 onwards | Apply Now |
| Bajaj Housing Finance | 9.75 - 18.00 | Apply Now |
| Punjab National Bank | 10.40 - 12.75 | Apply Now |
HSBC Bank Types of Loan Against Property
Normal Loan Against Property
- Purpose: The loan serves to provide financing for a variety of personal and business needs.
- Loan Amount: Borrowers can secure loans of up to Rs 40 crore.
- Tenure: For self-employed individuals, the tenure is 15 years, while for salaried individuals, it extends up to 25 years.
Smart Loan Against Property
- Purpose: The loan against property is provided as an overdraft facility, with a sanctioned credit limit equivalent to the loan amount. Borrowers can withdraw from this limit as needed to fulfill personal and business needs.
- Loan Amount: Borrowers can avail loans of up to Rs 40 crore.
- Tenure: The tenure for this facility extends up to 15 years.
Also read: Best Loan Against Property EMI Calculator
HSBC Bank Loan Against Property Fees and Charges
| Particulars | Charges |
|---|---|
| Processing Fee | The processing fee for the loan is 1% of the sanctioned loan amount or Rs 10,000, whichever is higher. This fee is collected in two parts: an upfront payment of Rs 5,000 plus taxes with the loan application, and the remaining balance plus taxes is payable before the loan disbursal. |
| For Smart LAP | NIL |
| For floating rates LAP | NIL |
| For fixed rate LAP | There are no charges applicable for part-prepayment up to 25% of the outstanding loan amount once in every financial year. |
| For an amount in excess of 25% of the outstanding loan amount or more than one prepayment, a charge of 4% of the prepayment amount is applicable. | |
| Penal interest | A penalty of 2% is applied on top of the existing interest rate charged on the loan account for any amount that is overdue. |
| Annual fee (only for Smart LAP) | A fee of 1% of the outstanding limit is payable on each loan anniversary until the loan is completely repaid. |
| Cheque, ECS or SI (standing instruction) dishonors | Rs 250 per instance |
| Debit card charges | Rs 250 p.a. |
| Request for copy of documents held with the bank | Rs 500 |
| 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) | The charge is 0.50% of the outstanding limit or the current account limit, whichever is higher, plus applicable taxes. |
| Commitment fee | For amounts above 25% of the Smart Loan Against Property (Smart LAP) with Commitment Fee, a fee of up to 1% is applicable. If the excess funds in the Smart LAP with commitment fee exceed 25%, a fee of 1% p.a. is charged on the balance amount maintained over and above the threshold. |
HSBC Bank Loan Against Property Eligibility Criteria
For salaried applicants:
- Minimum age: 21 years
- Maximum age: 58 years (60 years for public limited/government employees)
- Minimum net income: Rs 5 lakh per annum
For self-employed applicants:
- Minimum age: 21 years (at loan application)
- Maximum age: 65 years (at loan maturity)
- Minimum net income: Rs 7.5 lakh per annum
Also read: Best Loan Against Property Eligibility
HSBC Bank Loan Against Property Documents Required
Common Documents:
- Age Proof (any one): Passport, Driving License, PAN Card
- 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
Income Documents for Salaried individuals:
- Latest 3 months’ salary slips showing statutory deductions
- Bank statements for the last 3 months showing the last 3 salary credits
Income Documents for Self-Employed Individuals:
- Primary bank account statements for the last 6 months
- Acknowledged IT returns for the last 2 years (including e-acknowledgement)
- For partners of the partnership firm, additionally, the Partnership Deed is required
- P&L account, balance sheet certified/audited by a CA, and computation of income for the last 2 years with all annexures and auditor’s report
- 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
Income Documents Required for NRI self-employed (all documents should be self-attested):
- Passport copy with valid Visa stamp
- Trade license or equivalent document
- Local bureau report of the country/region where the customer is based
- Brief profile of the applicant and business in the specified format
- 6 months overseas bank account statements and NRE/NRO account statements
- Computation of income, P&L account, and balance sheet for the last 3 years certified by a CA/CPA or any other relevant authority as the case may be (or equivalent company accounts)
Documents for Merchant Navy:
- Primary bank account statements for the last 3 months
- 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
- Local bureau report of the country/region where the customer is based (applicable if the country/region of residence is other than India.
Consultant/Self-employed professionals:
- Primary bank account statements for the last 6 months
- Acknowledged IT returns for the last 2 years (including e-acknowledgement)
- P&L account, balance sheet certified/audited by a CA, and computation of income for the last 2 years with all annexures and auditor’s report
Income Documents Required for NRI salaried (all documents should be self-attested):
- 3 months NRE/NRO account statements
- Latest contract copy evidencing salary/salary certificate/wage slips
- Overseas bank account statements for the last 3 months showing salary credits
- Local bureau report of the country/region where the customer is based
- 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
Also Read : Best Loan Against Property Documents Required
HSBC Loan Against Property FAQs
1. What is the time span for HSBC Loan Against Property credit approval?
The loan application processing typically takes about 16 days from start to finish. Here's the breakdown:
- Initial Processing: 5 days for document submission, legal scrutiny, and property valuation.
- Legal Scrutiny: Time varies by state.
- Post-Approval Processing: Minimum of 4 days after document submission.
- Disbursal: Loan disbursal within 2 days after submitting the completed agreement and necessary documents.
2. What are the repayment options for HSBC Loan Against Property availed by an NRI?
You can repay the loan in various ways, such as debiting your NRE/NRO account, using funds from your FCNR deposit, debiting a bank account belonging to a close relative, or through foreign inward remittance.
3. What is HSBC mortgage rate now?
The current starting mortgage rate at HSBC is 9.75% per annum.
4. What is the current interest rate for loan against property?
The current interest rate for a loan against property at HSBC Bank starts at 9.75% per annum.
5. What is the procedure for the pre-payment to be made to HSBC Loan Against Property?
To make pre-payments on your HSBC Loan Against Property account, you need to submit a written request specifying whether you want to reduce the EMI or shorten the tenure. If no instructions are provided, the bank will typically reduce the loan tenure based on the pre-payment amount. In the case of excess credit received in your Smart Loan Against Property account without any instructions, the surplus amount will be applied towards reducing the principal balance only.