HSBC Home Loan Interest Rates

HSBC Bank offers several home loan programmes at competitive interest rates to cater to versatile client needs. The bank's Repo Linked Lending Rate (RLLR) influences the floating interest rates. Interest rates begin at 6.49% per year for salaried people and 6.59% per year for self-employed people. A maximum repayment tenure of 20 to 25 years is available. HSBC Bank offers home loans up to Rs. 30 crores at maximum. 

HSBC Bank Home Loans Schemes Interest Rates

Given below are the interest rates for different HSBC home loan schemes:

HSBC Smart Loan

• Interest rate: 6.75 to 6.85 percent per year, plus a commitment fee. In the absence of a commitment charge, the interest rate is between 6.95% and 7.05% per annum.
• Processing fees are 1 percent of the loan amount or Rs. 10,000, whichever is greater.
• The loan scheme is available at a floating rate.
• 20-year repayment period
• The Current Account Commitment Fee and Conversion Fee apply to Smart Loan facility

HSBC NRI Home Loans

• Interest Rate: 6.45% per annum and higher
• Applicants can get a loan amount of up to Rs. 30 crores.
• Duration of repayment of up to 25 years
• There are no foreclosure fees assessed.

HSBC Bank Home Loan Interest Rate  for Salaried Applicants

HSBC Bank offers home loan interest rates ranging from 6.75% - 7.50% p.a. for salaried applicants. The interest rate provided by the bank is subject to change based on the borrower's profile, loan amount, and other factors.

HSBC Bank Home Loan Interest Rate  for Self-Employed Applicants

HSBC Bank offers home loan interest rates starting from 6.90% p.a. for self-employed applicants. The actual rate of interest will depend on the loan amount, loan tenure, credit score and other factors.

HSBC Bank Home Loan Interest Rates for Govt Employee

HSBC Bank offers home loans to government employees at the following interest rates:

• Up to Rs. 30 Lakhs: 8.35% - 9.30% p.a.
• Above Rs. 30 Lakhs: 8.40% - 9.40% p.a.

HSBC Bank Home Loan Interest Rate For Women

HSBC Bank offers home loans to both men and women at the same interest rate. As of Feb 2023, HSBC Bank prides home loans at an interest rate of 8.55% p.a.

HSBC Bank Home Loan Interest Rate For NRI

Currently, the HSBC Bank Home Loan Interest Rate for NRI customers is 8.35% p.a. This rate may vary according to the loan amount, tenure, and other factors.

HSBC Bank Home Loan Interest Rate and Other Charges

The table given below shows the different fees and charges associated with a home loan from HSBC:

How to Calculate HSBC Bank Home Loan EMI

Equated Monthly Instalment is referred to as EMI. It involves paying down the original balance of your mortgage loan and accrued interest. A longer loan term (up to 30 years) is beneficial to lower the EMI.

Example: How is a Loan's EMI Calculated?

The EMI calculation formula is as follows:

P x R x [(1+R)N-1] x (1+R)N

where,

• P is the principal loan sum
• N is the Loan term in months
• R is the ongoing interest rate

Your loan's interest rate (R) is determined on a monthly basis.

R = Interest Rate Annual (12/100)

When the interest rate is 7.2% per annum, r = 7.2/12/100 = 0.006

For instance, if a borrower takes out a loan for 10,000 at a 7.2% annual interest rate for 120 months (10 years), his EMI will be computed as follows:

EMI= ₹10,00,000 * 0.006 * (1 + 0.006)120 / ((1 + 0.006)120 - 1) = ₹11,714

The total sum due is 11 714 multiplied by 120 or Rs. 14 05 703. The principal loan balance is Rs.100,000 and the interest will be Rs. 4,05,703 monthly.

Factors that Affect HSBC Bank Home Loan EMI

Given below are some of the factors that affect HSBC Home Loan EMI:

Applicant’s Job

If you work for a reputable company, banks will view you as having a reliable source of income, allowing you to get a home loan at lower interest rates. You can work in any domain, such as a salaried worker, a government employee, a PSU employee, or even as a self-employed professional like a doctor or a certified public accountant.

Type of Interest Rate

The bank and NBFCs offer three types of interest rates to home loan borrowers: floating, fixed, and mixed rates (fixed plus floating). The RBI regulates the Repo rate, which increases or decreases floating interest rates. They can lower the interest rate, reducing the EMI amount, and vice versa.

Fixed rates are consistent throughout the loan repayment, which results in a consistent monthly payment. For a particular time, a mixed rate combines the two rates indicated above; the fixed interest rate is applied to the principal amount to determine the EMI value, and the fluctuating interest rate is applied to the loan amount to change the EMI value.

Loan-to-Value Ratio

It speaks about the property worth for which the borrower secured a home loan. The interest rate is also high when the value is high, which raises credit liability. Making a sizeable first down payment will assist you in lowering the interest rate that is applied to the loan balance, allowing you to spend within a range that doesn't strain your monthly budget.

CIBIL Score

It is one of the key elements that significantly affects the interest rate. It reveals an applicant's prior repayment behaviour, creditworthiness, and behaviour that impacts their financial stability. If the CIBIL score exceeds that, the charm works in your favour, and banks offer loans at an even lower interest rate. If the score is below 600-650, banks view those candidates as defaulters, increasing the lending interest rate at which banks issue the loan.

Property Location

This component is crucial when determining the interest rate relative to the loan amount. When a house is located in a fancy neighbourhood and has a respectable resale value, banks offer loans at a lower interest rate; nevertheless, when a property is located in a run-down neighbourhood and has a poor resale value, banks offer loans at a higher interest rate. Similar circumstances apply to new and old homes, with new dwellings drawing lower mortgage rates and aged homes drawing higher interest rates.