Urban Money

HSBC Home Loan

HSBC
4.5

HSBC provides home loans up to Rs 30 crore at 7.44% p.a. for repayment terms of up to 25 years. To existing home loan borrowers, the bank also provides an overdraft facility known as Smart Home Loan. HSBC also provides balance transfer services at lower interest rates to existing home loan borrowers with other banks and NBFCs

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Urban Money

Home Loan Banks

Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

HSBC Home loan Interest Rate

HSBC

8.35%

1%

4.5

₹3L - ₹30Cr

Tenure(Up to 25 Years)

Details

Features & Benefits of HSBC Home Loan

HSBC, being one of the finest institutions, facilitates you with the HSBC Home Loan so that you can easily plan and make your dream of buying a house come true. HSBC provides home loans at an affordable interest rate which starts from 8.35% and floats according to your employment status which can be Salaried, Self-employed or Balance Transfer Loans etc. HSBC issues loam amount starting ranging from INR 3 lakhs up to INR 40 crores with a repayment tenure of up to 25 years in case of a salaried person and INR 20 years for a self-employed individual. You can avail of better offers as HSBC provides great schemes for their customers.

But at the same time, there are many questions that come to your mind like how to apply for an HSBC Home Loan, or what the interest rates will be etc., This piece covers every bit of information about HSBC Home Loans and what you should keep in mind while applying for one.

The features and benefits of the HSBC Home Loan scheme are mentioned below:

  • You don’t have to bother much about any extra surcharges or fees and it requires less paperwork to file an application for a home loan.
  • You are liable to repay the EMI amounts at the cost of your comfort and convenience.
  • You get various options in interest rates which depend on the category of Home Loan by the bank.
  • You get easy access to home loan bank transfers.

Note - You get 24*7 assistance and a doorstep guide to help you in any case of any financial or account-related emergency from the HSBC bank.

Eligibility Criteria for HSBC Home Loan

If you want to qualify for the HSBC Housing Loan and want to check the eligibility criteria for HSBC Home Loan eligibility, then all the relevant information has been compiled below:
  • If you are a salaried employee, your net income must be INR 5 lakh; if you’re a self-employed individual, that income must be INR 7.5 lakh.
  • You must be of 21 years of age or above.
  • minimum loan amount will be INR 3 lakh up to a maximum loan amount of INR 40 Crore.
  • The repayment tenure for salaried personnel would be 25 years and for self-employed would be 20 years.
  • Maximum age limit for the maturity of loan tenure will be 58 years in case of salaried personnel, 60 years for govt./PSU employees, and 65 years for self-employed individuals.

HSBC Home Loan Fees and Charges

HSBC charges a very nominal processing fee on home loans and they are compiled in the table below:-

PROCESSING FEE
HSBC BANK UPTO 1.00% OR INR 10,000 PLUS GST(WHICHEVER IS HIGH)
PREPAYMENT CHARGES ON HOME LOAN
FIXED RATE NIL IF LOAN AMOUNT IS SANCTIONED AT 25.00% IN EVERY FINANCIAL YEAR and 3.00% IF IT IS SANCTIONED AT MORE THAN 25.00%
FLOATING RATE NIL
OTHER CHARGES
IF INSTALLMENTS ARE DELAYED OR DISHONOR OF SI INR 250
COPIED DOCUMENTS OF PROPERTY INR 500
CONVERSION CHARGES INR 5000+GST WHEN CONVERTING LOAN FROM NORMAL TO SMART OR VICE VERSA
PENAL INTEREST UPTO AND ABOVE 2.00% ON EXISTING RATE

HSBC Home Loan Interest Rates

HSBC Home Loan Interest Rates float with your diversity in employment like if you are a salaried individual, they’ll offer you home loans at a lesser interest rate than those who are self-employed because of a risk factor and creditworthiness.

The table below shows HSBC Home Loan Interest Rates according to different criteria set by the bank.

TYPE INTEREST
BALANCE TRANSFER LOANS 8.35% PER ANNUM
HOME LOAN (SALARIED) 8.44% PER ANNUM
HOME LOAN (SELF-EMPLOYED) 8.54% PER ANNUM
(OVERDRAFT) SMART HOME LOAN FOR SALARIED (WITH COMMITMENT FEE) 
8.70% PER ANNUM
FOR SALARIED (WITHOUT COMMITMENT FEE)
9.10% PER ANNUM
FOR SELF-EMPLOYED (WITH COMMITMENT FEE)
8.80% PER ANNUM
FOR SELF-EMPLOYED (WITH COMMITMENT FEE)
9.20% PER ANNUM

Factors affecting HSBC Home Loan Interest Rates

There are few factors which affect HSBC Home Loan Interest Rates and they are mentioned below.

  • Employee’s Job Role

If you work in a well-reputed organisation, banks consider your profile as someone who has a stable income source which then enables you to acquire home loans at a very minimal interest rate. You can be employed in any of the ways like you can be a Salaried individual, Government employee or can be a part of PSU and can be self-employed as well like Doctors and CAs.

  • Various Interest Rates

A bank or NBFC offers 3 types of interest rates to their customers which include Floating, Fixed, and Mixed Rates (fixed + floating). RBI controls the floating interest rate as that varies according to the condition of the country's economy, they can even lower the interest rate which in turn lowers the EMI amount and vice versa can happen as well. Fixed rates remain constant throughout the tenure, which means a constant EMI amount during the repayment period. A mixed Rate includes both of the above-mentioned rates that is for a specific period, the fixed interest rate works over the principal amount to decide the EMI value and then the floating interest rate works over the loan amount thus changing the EMI value.

  • LTV / Loan-to-Value Ratio

It refers to the value of property financed by the loan amount. If the value is high, it attracts a higher interest rate which thus increases credit liability and vice versa. If you make a good amount of initial down payment, it will help you in bringing down the interest rate applicable over the loan amount which in turn helps your pocket to spend in a limit which doesn’t hurt your monthly budget.

  • MCLR Rate

It refers to Marginal Cost of Funds based on Lending Rate. It is the minimal rate of interest at which a bank offers the loan and depends on other factors such as CRR(Cash Reserve Ratio), Marginal Cost of Funds, Operating Cost, and Tenor premium etc. Banks decide a date every year to reset it as per that period’s existing rate of which borrowers have taken up loan which means it is variable, it can go up and down depending on the market demand.

  • CIBIL Score

It is one of the crucial factors which impact the interest rate at a large scale. It shows what is an applicant’s past habit of repayment, your creditworthiness, and habits which affect your financial health. If it is below the mark of 600-650, banks consider those candidates as defaulters which in turn increase the lending interest rate at which banks issue the loan but if the score is above that, then charm works your way and banks issue loans at an even lower interest rate.

  • Property’s Location

This factor plays a vital role in deciding the interest rate against the loan amount. If a property is based in a posh locality and has a decent resale value, then banks issue loans at a lower interest but if a property is based in nominal locality and doesn’t have good resale value, then banks issue loans at a higher interest rate. Similar is the case with new and old properties, where new properties attract lower interest rates and old properties attract higher interest rates.

  • Tenure

If the repayment period of the loan is shorter, it attracts a lower interest rate even if the EMI amount is high but if the repayment period is longer, it attracts a high rate of interest which in turn lessens the EMI amount.

Documents Required for HSBC Home Loan

The documents required for an HSBC Home Loan are mentioned below:

  • You can have any of the following identity proofs like an Aadhaar Card/ PAN Card/ Voter’s ID/ Passport etc.
  • You can choose from any of the following address proofs like an Aadhaar Card/ Driving License/ Voter’s ID/ Passport etc.
  • You must have your income proof, i.e. the last 3-6 months salary slip as asked by the bank.
  • If this loan stands against your property, then you must have your property papers along with all the documents mentioned above.

How Does the EMI Calculation Work for an HSBC Home Loan?

For EMI calculation, you first need to convert the loan repayment tenure into months and the annual interest rate into the monthly interest rate. HSBC charges customers on a minimum interest rate of 8.35%. You can calculate the EMI value by using this formula:

EMI= [P x R x (1+R)^N]/[(1+R)^N-1] where,
  • P is the Principal amount or the total loan amount,
  • R is the interest rate, 
  • N is the period in months

How Do HSBC Home Loan Interest Rates Compare With Other Lenders?

The table below compares the interest rates of HSBC Home Loan which starts from 8.35% with other financial institutions according to different loan amount:-

Name of Lender >= INR 30 Lakh < INR 30 Lakh to  > INR 75 Lakh > INR 75 Lakh
HDFC 8.60% - 10.00% 8.85% - 10.25% 8.95% - 10.35%
ICICI Bank 8.60% - 9.50% 8.60% - 9.50% 8.60% - 9.50%
SBI 8.55% - 10.05% 8.55% - 9.95% 8.55% - 9.95%
Kotak Mahindra Bank 7.99% onwards 7.99% onwards 7.99% onwards
LIC Housing Finance 8.00% - 9.50% 8.00% - 9.70% 8.00% - 9.90%
Union Bank of India 7.75% - 9.65% 7.75% - 9.85% 7.75% - 9.85%
Punjab National Bank 8.45% - 9.85% 8.40% - 9.55% 8.40% - 9.50%
Federal Bank 9.05% - 9.10% 7.77% - 9.15% 7.77% - 9.20%
PNB Housing Finance 8.50% - 12.50% 8.50% - 12.50% 8.50% - 12.50%
Godrej Housing Finance 7.99% - 10.99% 7.99% - 10.99% 7.99% - 10.99%
Bank of Baroda 8.45% - 9.95% 8.45% - 9.95% 8.45% - 10.20%
Tata Capital 8.60% onwards 8.60% onwards 8.60% onwards
IDFC First Bank 8.45% onwards 8.45% onwards 8.45% onwards
L&T Housing Finance 7.70% - 8.70% 7.70% - 8.70% 7.70% - 8.70%
Bajaj Housing Finance 7.70% onwards 7.70% onwards 7.70% onwards

HSBC Home Loan on Balance Transfer

HSBC gives their customers a unique feature so that they can easily transfer their home loan back to their bank accounts which in turn helps them as the interest rates are lower compared to the normal rates like they are between 6.00%-7.00% from 8.35%. This facility helps customers to rely on their finances during an untimely emergency. For further details, you can contact their customer care number.

HSBC Home Loan Customer Care Number

You can avail of HSBC’s home loan customer care number, which is available 24*7 for any query or concerns on the TollFree number: 1800 266 3456/1800 120 4722.

FAQs

From refinancing to reducing your interest, we have the answers right here.

Does HSBC Provide Home Loan at the best rate?

HSBC provides Home loans at a very minimal interest rate starting from 8.35 % with almost nil processing fee and upto 150% top up at the same rate.

What is the interest rate of Home Loan in HSBC?

The range of interest rates for HSBC Home Loan category depends on the individual background as if the person is salaried/ self-employed etc. The interest rate starts from 8.35% and varies depending on the nature of personnel’s income source.

What are the benefits HSBC Provides on Home Loan?

HSBC provides you a great deal in terms of interest rate, easy dispersal of loan amount, nil processing fee, top up of 150% at the same rate, long and easy repayment policy.

Does HSBC Checks for CIBIL Score for Home Loan?

Yes, HSBC checks for CIBIL score for Home Loan and considers 750 and above as an optimum value and gives the customers with this much score a great deal in interest rate and loan amount.

What is the maximum and minimum housing loan amount I can get from HSBC?

HSBC issues minimum of INR 3 lakh and goes upto a maximum of INR 40 Crore as loan amount which suffice the need of almost every group of people.

What are the KYC documents I will have to submit to apply for a home loan from HSBC?

You need any of the mentioned ID proof i.e. Aadhaar Card, PAN Card, Passport, Driving License etc., any address proof like a Driving License, Voter’s ID, Ration Card, Passport, Aadhaar Card etc., last 3-6 months’ salary slip as per mentioned by the bank, and property papers if the loan is against the property.

Will I be penalised for not paying my EMI on the HSBC housing loan?

It is an important clause of the bank that one must repay the bank on due dates to be saved from any future hustle. And if one fails to do so, HSBC bank levies up to and above a 2.00% charge on the existing rate.

What is the processing fee on the HSBC home loan?

HSBC charges their customer either 1% or INR 10,000 (whichever is high) on the loan amount.

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