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HSBC Smart Home Loans
One of the most cherished dreams of a lifetime for most of us is to own a house. We put all our life’s savings into building our houses. In this age of inflation, repaying a home loan forms a major chunk of our monthly income. Due to this, we need to plan the rest of our expenditure in a stringent way. What if you could save on your interest payments and also reduce the tenure of the loan? HSBC Smart Loan is the ultimate solution to this woe.
Benefits of HSBC Smart Home Loans
1. Savings on interest: The Smart Home Account is just like a Current Account. It comes with an overdraft limit which is equal to the amount of the loan disbursed. All you have to do is to put your money into this account just like you do in a normal current account. So, you can say that the Smart Home Account is also your loan account. This way, the amount of interest paid can be reduced as per the savings put in the Smart Home account. This will also reduce the tenure of the loan.
2. Use it as a bank account: This facility also provides you with complete flexibility to use the Smart Home account as your banking account. You will get full access to this account through a cheque book, debit card and internet banking.
3. Loan amount: You can avail home loans in the range of Rs 5 lakhs to Rs 10 crores.
4. Loan on under-construction property: This loan is also available on under-construction properties. In this case, the loan is disbursed in tranches and HSBC will levy interest on only the amount of loan disbursed. The EMI starts only after the final disbursal of the loan.
5. Property types included: Both, Resident and Non-Resident Indians can avail this loan. The property types included are Ready, Under-construction, purchase of plot of land, improvement of house or self-construction.
6. Interest Rate: The interest rate applicable on the HSBC Smart Home Loan is floating. A Floating home loan is linked to the published 3-month Marginal Cost of Fund based Lending Rate (MCLR).
7. Loan Tenure: The tenure for home loans is up to 20 years. However, if you are salaried, you may avail loan of up to 25 years.
Fees and Charges
- Processing fee: 1% of the loan amount sanctioned + GST or Rs. 10,000, whichever is higher
- Fee will be collected in two parts: Rs 5,000 + GST upfront along with loan application
- Balance Processing Fee amount+ GST to be paid after disbursal of loan
- Processing Fee is non-refundable
Eligibility Criteria for HSBC Smart Home Loan:
These are the criteria that you must fulfil in order to be eligible for a HSBC Smart Home Loan:
| Minimum net income (Rs.) | 5, 00,000 p.a. (salaried) 7, 50,000 p.a. (self-employed) |
|---|---|
| Minimum age (in years) | 21 |
| Maximum age (in years) on maturity of loans | 58 (salaried) |
| 60 (public limited/government employees) | |
| 65 if you are self-employed | |
| Minimum Loan Amount (Rs.) | 5,00,000 |
| Maximum Loan Amount (Rs.) | 10,00,00,000 |
| Maximum Tenure (in years) | 25 years if you are a salaried individual |
| Interest rate type | Floating rate |
| Credit Score | 750 and above recommended |
Insurance requirement
You must insure your property with an insurance company against loss by fire, earthquake, floods and other damages with HSBC Limited, India, as the beneficiary.
HSBC Smart Home Loan Documentation:
1. Completed application form along with one passport-size photograph. Please note that all documents must be self-attested.
2. Any one of the following as Proof of Identity (PI):
- Passport
- Election/Voter’s ID
- Permanent driving license
- Permanent Account Number (PAN) card
- Aadhaar Card
3. Any one of the following as Proof of Present Residential Address (PRA):
- Passport
- Election/Voter’s ID
- Permanent 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
4. Proof of age (any one)
Credit Decision Timelines
| Description | Rate |
|---|---|
| Application processing (pre-approval) | Within 5 days of submitting complete documents |
| Evaluation of the property i.e. valuation and legal evaluation | From 3 days (onwards)* of submitting copies of complete property documents |
| Loan processing (post-approval) | Within 4 days of submitting complete documents |
| Loan disbursal | Within 2 days of submitting duly stamped and completed loan agreement and other required documents |
The total credit decision takes about 15 days to get processed. However, it is to be noted that timelines for legal evaluation differ across states. You can learn about the same from the representative in-charge of your loan application. These timelines are also mentioned in detail in the Mortgage Account opening form.
| Resident Indian | NRI |
|---|---|
Salaried individuals Last 3 months salary slips showing statutory deductions and Bank statements for last 3 months showing last 3 salary credits |
|
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 Partnership Deed is required For Partners of the Partnership firm, additionally Partnership Deed is required For Directors of the Private limited companies additionally required
|
|
Consultant / Self-employed Professional 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 | Working in Merchant Navy
|
Prepayment process for HSBC Smart Home Loan
For processing prepayment requests, you need to send HSBC a written instruction communicating their desire to prepay with your intent of wanting to reduce the loan tenure or EMI. If there is no specific instruction of whether to reduce the tenure of the EMI, HSBC will by default reduce the loan tenure based on the prepayment amount received. On the other hand, excess funds/amounts are received towards the loan account without any written instructions from you to prepay, the amount will be credited to the Smart Home account and will impact the available balance in the account.
Other advantages of HSBC Smart Home Loan
1. Smart Home Account doesn’t require you to maintain any minimum balance in the account during the tenure of the loan.
2. Free unlimited access to HSBC ATMs in India and five free transactions in a calendar month at ATMs of other banks in India
3. Withdrawal limit of Rs 25,000 at HSBC ATMs and purchase limits of Rs 40,000 at empanelled merchant establishments in India
4. If your initial Loan amount is greater than Rs 30,00,000/- you can avail of benefits of HSBC Advance.
5. HSBC Advance offers you the privilege of Priority servicing at branches and dedicated 24X7 Phone Banking
6. You can access to a pool of Wealth Managers because of HSBC Advance
7. You can receive assistance prior to opening HSBC accounts overseas HSBC accounts and access to emergency encashment assistance in select countries.
8. Even after repayment of your entire loan, you have the option to continue your SmartHome account as a current account for baking transactions. However, the minimum balance requirements will be applicable.
HDFC Short Term Bridging Loan FAQs
1. How to repay the loan?
To repayment the loan, you need to give a letter of authority to debit your Smart Home account for the EMI.
The interest portion of the EMI is debited to the Smart Home account and the principal portion gets adjusted against the limit outstanding. You repay the loan by depositing at least the EMI amount into the Smart Home account every month.
2. How can I know what is the principal/interest break-up of the EMI paid?
The track record of your Smart Home will give you the break-up of your monthly interest and principal payment.