HSBC Bank Home Loan

About HSBC Bank

HSBC is a multinational banking and financial services company has around 4000 offices in 70 countries. It is the world’s sixth largest public company according to the composite measure by Forbes magazine. The bank offers wide range of financial services to its customers.

What Is a Home Loan?

Home Loan is offered to individuals who wish to construct or buy a house. The property bought or about to be constructed is mortgaged as collateral until the repayment of the loan is completed with full interest. The repayment of the loan generally depends on the capacity of the borrower. Normally, the home loan tenure ranges between 5 to 30 years. The borrower can opt either for floating type of interest or fixed interest rate. Home loan provides tax benefits to the borrowers.

An Introduction to HSBC Bank Home Loans

HSBC Bank offers a wide range of services in the personal loan segment. It is the most preferred bank by all kinds of people for any financial service. HSBC Bank provides customised home loan solutions for purchase of a house, construction and extension of dwelling units. Packed with exclusive benefits, HSBC Bank Home Loans are tailor made, catering to the needs of various customers.

Advantages of HSBC Bank Home Loans

• Attractive interest rates with floating and fixed type based on your preference
• Low processing fees
• Less paperwork
• No prepayment charges
• Easy home loan balance transfer
• Transparent application process
• Flexible repayment options
• Door step assistance provided

Features of HSBC Bank Home Loan

Key Highlights

Objective:

HSBC Bank home loan aims to help millions of people achieve their dream of owning a house.

Loan Amount:

The loan amount ranges between 3 Lakhs to 10 Crores.

Loan Tenure:

Up to 25 years of repayment period is available under HSBC Bank home loan scheme.

Prepayment Charges:

No penalty is levied on prepayment

Processing Fees:

1% of the loan amount or INR 10,000, whichever is higher.

Interest Type:

Floating and Fixed

Home Loan Transfer:

You can transfer your home loan from other bank to HSBC Bank at ease.

Interest Rate on HSBC Home Loans

The interest rate ranges up to 11%. However, it is subject to change at the sole discretion of the bank.

HSBC Smart Home Loan

Objective:

HSBC Smart home loan aims to reduce interest burden on the customer with the overdraft facility. Customers can park surplus amount in savings and withdraw whenever required while the savings will also reduce the interest on the home loan.

Loan Amount:

The loan amount ranges between 5 Lakhs to 10 Crores.

Loan Tenure:

Up to 25 years of repayment period is available under HSBC Bank home loan scheme.

Prepayment Charges:

No penalty is levied on prepayment

Processing Fees:

1% of the loan amount or INR 10,000, whichever is higher.

Interest Type:

Floating and Fixed

Home Loan Transfer:

You can transfer your home loan from other bank to HSBC Bank at ease.

Interest Rate on HSBC Smart Home Loans

The interest rate ranges up to 11.50%. However, it is subject to change at the sole discretion of the bank.

• You should be over 21 years of age.
• Steady source of income

Documents Required to Apply for HSBC Bank Home Loans

Important documents to be submitted while applying for home loan with HSBC Bank

• Completed loan application
• 3 Passport size photographs
• Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
• Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill)
• Statement of Bank Account/ Pass Book for last six months
• Form 16/IT returns for the last two financial years for salaried employees
• IT returns for the three years for self-employed professionals
• Property tax receipt
• Proof of business address for non-salaried individuals
• Personal assets and liabilities statement

For guarantor (wherever applicable):

• Personal Assets and Liabilities Statement
• 2 passport size photographs
• Proof of identification as above
• Proof of residence as above
• Proof of business address as above
• Signature identification from his/her present bankers

EMI Payment Methods

Your HSBC Bank home loan can be repaid in following three ways.

Standing Instruction (SI):

If you are an existing account holder with HSBC Bank, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the HSBC Bank account you specify.

Electronic Clearing Service (ECS):

This mode can be used if you have a non-HSBC Bank account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs):

You can submit post-dated EMI cheques from a non-HSBC Bank account at your nearest HSBC Bank Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for HSBC Bank Home Loan?

You can either apply online or visit a nearby HSBC Bank branch for the application. You can also download the home loan application form from the HSBC Bank official website, complete the form and submit it the bank representative.

You can also check your eligibility for a home loan through CreditMantri and apply for it.

Summary of HSBC Bank Home Loans

With attractive interest rates and low processing fees, HSBC Bank caters to the needs of various sections of people. Floating and fixed type of interest rate are available according to the preference of the customers. The borrowers can prepay the HSBC Bank home loan without any penalty. HSBC Bank home loan is the best option to buy or construct your dream house.

HSBC Bank Home Loan FAQs

1. What are processing fees on HSBC Bank Home Loans?

1% of the loan amount or INR 10,000, whichever is higher is charged as processing fee.

2. Is there penalty for prepaying the HSBC Bank Home Loan?

No penalty is levied for prepaying the HSBC Bank Home Loan for floating interest rate type.

3. Can I top up my existing Home Loan?

Yes, you can get additional funding on your existing home loan.

4. What is the maximum loan repayment period for HSBC Bank home loans?

The maximum repayment period is 25 years. However, it varies depending on the customers’ profile.

5. How Can I apply for HSBC Bank home loan?

You can either apply online or visit a nearest HSBC Bank branch and take the help of the bank’s representative.

6. What is the maximum loan amount provided by HSBC Bank?

The maximum loan amount you can get from HSBC Bank is 10 Crores.

7. Does HSBC Bank facilitate balance home loan transfer?

Yes, you can transfer your existing home loan to HSBC Bank.

8. Can I get tax benefits from HSBC Bank Home Loan?

As per Section 80C read with section 80CCE of the Income Tax Act, 1961 the principal repayment up to INR 150,000 on your home loan will be allowed as a deduction from the gross total income subject to fulfilment of prescribed conditions.