Urban Money

HSBC Loan Against Property

HSBC
4.5

HSBC Bank provides Loan Against Property to salaried and self-employed individuals for amounts up to 30 crore and repayment terms of up to 25 years at floating interest rates of 8.45% p.a. HSBC Bank also provides the LAP overdraft facility, known as Smart Loan Against Property.

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Loan Against Property Banks

Interest Rate

Processing Fee

Rating

Loan Amount/Tenure

HSBC Loan against property Interest Rate

HSBC

9.3%

Up to 2%

4.5

₹3L - ₹30Cr

Tenure(Up to 15 Years)

Details

Features & Benefits of HSBC Bank Loan Against Property

HSBC Bank offers lucrative interest rates to individuals who wish to raise funds against their properties. One can avail of a loan amount of up to Rs 30 crores. The repayment tenure for the HSBC Bank loan against property is up to 25 years. The interest rate on this loan product can go as low as 8.40% per annum. HSBC also provides a loan overdraft facility.

HSBC Bank LAP offers the following features and benefits to the customers:
  • The bank has designed a hassle-free process where the customers can conveniently conclude the application with minimal documentation.
  • HSBC Bank offers flexible repayment tenure to customers through a wide array of loan schemes in the market.
  • The HSBC Bank offers attractive interest rates against the property so that one can conveniently raise funds for personal purposes.

HSBC Bank Loan Against Property Overview

HSBC Bank LAP is a loan product offered by one of the most renowned brands in the banking sector. This financial institution boasts a global footprint offering a myriad of investment and financial products and services to cater to the requirements of its customer base.

HSBC BANK Loan Against Property 

Loan Amount  Upto Rs 30 Crores 
Repayment Tenure  Upto 25 years 
Processing charges  Upto 1% of the loan amount

Eligibility Criteria and Factors Affecting HSBC Bank Loan Against Property Eligibility

The eligibility criteria for the HSBC Bank LAP for the customers are as follows:

Salaried Individuals

  • Income (Minimum): Rs 5 Lakhs 
  • Age (Minimum): 21 Years 
  • Age (Maximum): 58 to 60 years

Self-employed Individuals

  • Net Income (Minimum): Rs 7.5 Lakhs 
  • Age (Minimum): 21 Years (At the time of application)
  • Age (Maximum): 65 Years (At the time of maturity)

HSBC Bank Loan Against Property Interest Rates

The HSBC Bank Loan against property is a kind of secured loan that allows the borrower to raise funds against their property. The table below provides information on the interest rates on the loan product.

Interest Rate 
Loan Against Property: 9.30% per annum 
Smart LAP: 9.40% (with commitment fee) 9.65% (without commitment fee) 

Factors Affecting HSBC Bank Loan Against Property Interest Rates

The following factors affect the HSBC Bank LAP interest rates:

  • Loan Amount: raised from the bank directly impacts interest raised offered by the bank. The minimum borrower can raise from the HSBC Bank is Rs 3 Lakhs.
  • Monthly Income: the financial institution would also refer to the applicant's income to determine the interest rate. As a substantial income lowers the chances of default.
  • Loan Type: generally, the interest rates offered on residential properties are more lucrative than on commercial and industrial properties.
  • Type of Scheme: HSBC Bank offers various schemes with varying interest rates and repayment tenure to cater to the different requirements of the customers.
  • Profession: The applicant's profession is also accounted for by the HSBC Bank. A salaried individual may get a better interest rate than a self-employed professional, as the former may avail of an HSBC LAP for personal use. In contrast, the latter use it for business operations. 

HSBC Bank Loan Against Property Fees and Charges

HSBC Bank levies the following fees and charges from their customers to conclude the Loan Against property.

Amount 
Processing Fee Rs 10,000 or 1% of the loan amount sanctioned. The bank follows a two-part system to collect the processing fees.
  • Taxes payable upfront along with Rs 5,000. 
  • Tax to be paid before the loan disbursal.
Floating Rates LAP NIL 
Fixed Rate LAP
  • No charges will be levied if the Loan amount outstanding is up upto 25% of the loan amount. 
  • In case the loan amount outstanding exceeds 25% of the loan amount. Then the 4% of prepayment fee must be levied from the borrower.
For Smart LAP Nil
Incase the ECS Cheque dishonours Rs 250 per instance
Debit card fee Rs 250 per annum 
Penal interest 2% is charged on the loan amount over the current interest rate. 
Annual Fee 1% of the outstanding limit payable in each financial year. 
Conversion Fee 0.50% of the outstanding limit 
Document copy held with the bank Rs 500 
Commitment Fee Loan amount 25% of the smart LAP commitment fee

Documents Required for HSBC Bank Loan Against Property

The loan applicants of the HSBC Bank LAP are required to maintain and produce the following documents at the time of the loan application.

General Documents

  • The applicant must produce one passport-size photograph and the application form. 
  • The applicant must also produce identification proof such as a passport, driving license, Voter ID, PAN, or Aadhaar Card 
  • The applicant must also produce proof of residence. They can produce one of the following:  Passport/Voter ID/ Driving License. 
  • They must also utilise their Passport, driving license, and PAN to prove the applicant's age. 

Salaried Employees

  • The employees are required to produce salary slips. 
  • Bank statements showcasing salary credit in the bank account of the individual. 

Self-Employed Individuals 

  • Last two years’ IT returns.
  • P&L account statement, certified and audited balance sheet of the past two years. 
  • Bank account statement for the last six months. 
  • The applicant is also required to produce a partnership deed in case of a partnership firm. 
  • MOA attested by a Charted accountant (CA) and a list of directors. 

How does the EMI Calculation Work for HSBC Bank Loan Against Property?

The HSBC Bank employs the following formulae to compute the EMI on the Loan Against Property.

P*r (1+r)^n/({1+r})^n]-1) = EMI

Where,

  • P is the principal amount, 
  • R is the accrued rate of interest 
  • N is the repayment tenure of the loan One can also employ the HSBC Bank LAP loan EMI calculator, where one can efficiently compute and review the EMI amount after mentioning the values in fields almost instantaneously. 

How does HSBC Interest Rates Compare with Other Lenders?

The following table showcases the comparison of the interest rates of HSBC from other lending institutions in India.

Name of the Lender  Interest Rate (% per annum) 
HSBC Bank  9.30% - 9.80% 
State Bank of India  10.30% - 10.70%
PNB Housing Finance  7.99% - 11.00% 
IDFC First Bank  8.40% - 15.90%
HDFC Bank 9.00% - 11.90%
Tata Capital 10.10% onwards
ICICI Bank  9.75% - 10.90%
Bajaj Housing Finance  8.60% - 18.00% 

HSBC Bank Loan Against Property Customer Care Number

The customers with the bank can reach out to the following customer care numbers:

Within India 1800 267 3465, 1800 121 2208
Overseas +91-40-65118002 +91-22-71728002

FAQs

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

What is a loan's interest rate against property in HSBC Bank?

The HSBC Bank LAP’s interest rate can range from 9.30% to 9.90% per annum.

What are the benefits HSBC Bank provides on loans against the property?

The HSBC Bank offers customers attractive interest rates and flexible repayment tenure.

Does HSBC have a fixed interest rate on loans against the property?

No, the interest rates on loans against property vary based on several factors, such as applicant profile and CIBIL scores.

How to check a loan against property Status in HSBC Bank

One can check HSBC Bank loans against property application status through online and offline channels established by the bank.

Does HSBC checks for CIBIL Score for loan against property?

The HSBC Bank reviews the applicant’s CIBIL score while processing the Loan Against the property application.

What is the maximum and minimum loan against property amount I can get from HSBC Bank?

The applicant can avail of a loan of up to Rs 25 crores from the HSBC Bank against collateral pledged to the institution.

What KYC documents will I need to submit to apply for a loan against property from HSBC Bank?

The applicant must produce KYC documents such as a voter ID card, Aadhaar Card, passport and driving license.

What is the processing fee on an HSBC loan against property?

The processing fee on the HSBC LAP is Rs 10,000 or 10% of the loan amount.

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