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HSBC Bank Home Loan

Home Loan Bank Information

Bank Name
Interest
Tenure
Processing Fees
AMBAK
8.25%
0 - 30
YEARS
0 %
+ GST
BASIC Home Loan
8.35%
0 - 28
YEARS
Rs 999
+ GST
PNB Housing Finance Limited
8.5%
1 - 30
YEARS
Rs 999
+ GST
Canara Bank
8.4%
1 - 30
YEARS
0.5 %
+ GST

Table of Contents

 

Introduction

One of the largest banking and financial services companies in the world, HSBC boasts a massive 39 million customers spread all across the globe in 66 countries. They are deeply rooted in four businesses internationally comprising of Retail Banking and Wealth Management, Global Banking and Markets, Global Private Banking  and lastly Commercial Banking.

Truly global in its standing, HSBC has a strong Indian connection going back to 1853 with the origin of Mercantile Bank in Mumbai. Within a short period the bank has spread it wings offshore with a strong presence in South East Asia and China. HSBC too has its roots in China since its founding, took over Mercantile Bank in 1959, thus establishing a firm foothold in India.

HSBC is one of the important lenders in retail lending with home loan product suitable to the prospective Indian borrower.

HSBC has adapted their home loan products in alignment with local sensibilities. The key features that make home loans from HSBC attractive are:

  • Competitive interest rates.
  • Generous amount of loan.
  • Loans for both the Resident and the NRIs.
  • Low charges and fees.

HSBC Bank Home Loan Interest Rates

Interest Rates are as of 2019

Owning a dream home can be quite a challenge. More so because in spite of the abundance of home loan solutions, the cost of capital becomes an important factor is proposing a project.

The rate of interest and any up front charge impacts the overall outgo in repayment of the loan and the size of the EMI. Thus it makes sense to study the interest regime applicable to the home loan.

In HSBC, the MCLR pattern is in vogue and the rates effective from 1st July 2019 are:

 

Interest rate regime in HSBC
BASE Rate 8.90% since June 2017
Retail Lending Rate (RLR) 16.15% since June 2017
MCLR Range
ON (Overnight) 8.25%
1M (One Month) 8.25%
3M (Three Month) 8.45%
6M (Six Month) 8.70%
12M or 1Y (One Year) 8.75%

 

Accordingly, HSBC offers the following rates of interest in its home loan products which is valid for Q2 of 2019.

The Interest Rate Home Loan pricing at HSBC
Product Minimum Maximum
Regular Home Loan 8.45% 9.10%
Smart Home Loan 8.60% 9.60%

Eligibility Criteria for HSBC Bank Home Loan

Once the rate of interest has been studied, the following step would obviously be the eligibility criteria applicable to the prospective borrower. The following grid will give a snapshot of the norm   applicable in HSBC.

Eligibility criteria for Home Loan in HSBC
Regular Home Loan
Target Audience
  • Resident Indians
  • Non Resident Indians (NRI)
Target Types
  • Salaried
  • Self Employed
Property Types
  • Acquisition of ready property
  • Purchase of under construction property approved by HSBC
  • Self construction of house
  • Home improvement
Age Minimum:21 years

Maximum:

58 years on maturity of loan

60 years for PLC and Government employees.

65 years for the Self Employed

Income Range
  • Salaried: Rs.5L minimum net income
  • Self Employed: Rs. 7.5L minimum net income
Loan Amount
  • Minimum: Rs.3L
  • Maximum:Rs.10C
Loan Tenure
  • Salaried: 25 years maximum
  • Others: 20 years maximum
Processing Charges
  • 1% of the sanctioned loan amount or Rs.10000 + GST whichever is higher.
  • The charge is recovered in two installments of Rs.5000 + GST each at the time of application and disbursal respectively.
  • Non-refundable
Pre-payment Charges Nil
Insurance Mandatory against all perils to the property in favor of HSBC
Smart Home Loan
  • All the criteria is similar in nature with the Regular Home Loan in HSBC, other than the type of loan which is overdraft.
  • The Loan Account is operated through a Smart Account which is a Current Account by nature with overdraft facility.
  • Any fund you park in the account goes to your benefit as the accrued interest on your reduced principal is lower.
  • You can withdraw the money at will, depending on the overdraft limit.
Commitment Fees 1% above 25% of the loan amount
Conversion Fees 0.50% of the outstanding loan limit

 

The maximum and minimum loan amount eligibility is also linked to the city where the property is located for different purposes.

Type of Property Amount Range (Rs) City
Under construction and Ready 5L to 10C Mumbai and new Delhi (NCR)
Under construction and Ready 3L to 7.5C Chennai, Bengaluru, Pune, Chandigarh, Ahmedabad, Jaipur, Kolkata and Hyderabad (only for Ready Property)
Self – construction 3L to 1C Chennai, Bengaluru, Pune, Chandigarh, Ahmedabad, Jaipur, Kolkata and Hyderabad (only for Ready Property)
Home improvement 3L to 25L Chennai, Bengaluru, Pune, Chandigarh, Ahmedabad, Jaipur, Kolkata and Hyderabad (only for Ready Property)

HSBC Bank Home Loan Schemes

It is important once in a while to summarize and recapitulate on what has been learnt so far. Considering that HSBC has the schemes well defined for providing the borrower a wide choice with a range of flavors. The character of the loan is basically two:

  • Term Loan: Regular Home Loan
  • Overdraft: Smart Home Loan

 

All the eligibility norms in them being same, the rates of interest applied to them vary. It is time to glimpse at them once again.

It is important to note that both floating and fixed rate of interest is applied in the Regular Home Loan. But the confirmation has to be sought from the Relationship Manager. However, Smart Home Loan does not allow application of fixed rate of interest.

 

The Interest Rate in Home Loan at HSBC
Product Salaried Self Employed
Regular Home Loan 8.85% 8.95%
Smart Home Loan With Commitment 9.05% With Commitment 9.40%
Without Commitment 9.15% Without Commitment 9.50%

 

It is seen by now that the types of loan offered by HSBC are in the pattern of both Term Loan and Overdraft with slightly varying interest application norms. It offers you a choice to opt for the type best suited to your preference.

 

Main Home Loan by HSBC

HSBC Regular Home Loan: It is the all encompassing home loan which is granted to both the Resident and Non Resident Indians.

In the case of NRIs, a local co-applicant is recommended or at least a local resident with a requisite Power of Attorney.

Meeting the challenge of appropriate loan amount is adequately addressed by HSBC with their generous loan amount which goes a long way in meeting your fund needs. The long tenure and low interest and the charge regime works in your favor in the long run.

HSBC Bank Home Loan Scheme for NRI or PIO

HSBC provides the NRIs with ample scope of home ownership through their home loan schemes, which are not dissimilar to the ones extended to the residents in character or features. In fact they enjoy all the facilities similar to that of the resident, as far as the home loan goes.

However, home ownership and purchase of immovable property by the NRI is governed by the guidelines framed by the RBI and the regulations of FERA. They are entitled to own immovable property which are residential or commercial, while farm land and plantation is barred.

 

Housing Loan for High-net-worth Individuals

HSBC is one of the banks who have a well codified mechanism to deal with HNWI through their Premier Service. In lay man’s terms it nurses your personal economy and ensures its good health.

The key benefits in Premier, which literally is aimed towards the HNWI are:

  • You are assigned a Relationship Manager
  • Meet all your banking needs
  • Anytime and anywhere.
  • Access is preferential.

 

However, to qualify for these services you need to belong to the elite class, the eligibility norms of which have been defined at HSBC.

  • The quarterly Total Relation Balance (TRB) should be minimum Rs.40L; or
  • Your mortgage relationship with HSBC should be valued at least Rs.1.15C; or
  • Hold a corporate salary account with HSBC under CEP (Corporate Employee Program) in India drawing a net monthly salary of Rs.3L minimum as credited in the account.

 

Once you attain the status to deserve Premier services, you are in for a host of other benefits matching the class you are deemed to belong. Some of the key takeaways are:

  • Provides personalized service and support to nurse your personal economy.
  • A professional and HSBC accredited Relationship Manager offering you preference in your banking and wealth management needs.
  • A complimentary Mastercard Credit Card loaded with unique offers like lounge access at airports, shopping offers etc.
  • A withdrawal limit of Rs.2.5L per day and unlimited access in all ATMs in India on HSBC Platinum Debit Card.
  • Global support at all the HSBC outlets internationally and emergency encashment of US$ 2000 for you and your family.

 

Amount of loan that can be taken under this loan scheme

HSBC offers are generous in the case of its Premier customers. The maximum amount allowed in all the sourcing cities of India the cap is at Rs.10C.

However the minimum agreement and market value of properties in Mumbai and New Delhi is Rs.25C which for all other cities is Rs.15C.

 

HSBC Home Loan for NRI

You are aware by now that HSBC provides home loan to the NRI component of the client base, which is quite substantial. HSBC is truly a global bank boasting of a client base comprising 39 million people across 66 countries. It is quite possible that the NRI in any case are associated with the bank in some way or the other. But before delving any further, it is imperative to have a clear idea about NRI.

NRI or Non Resident Indian by the very name signifies that he or she is an Indian citizen holding a valid passport, yet staying abroad for an uncertain period. For the purposes of Income Tax, any citizen who resides outside the country for more than 182 days in a financial year shall be considered a NRI. Whereas a PIO is a Person of Indian Origin holding a foreign passport but his ancestor had been a holder of Indian passport or was an Indian citizen

But why does a NRI reside abroad? It is for pursuing occupation which may be for employment with a foreign entity or on deputation in international agencies like the UN, our embassies and of MNC.

It has already been discussed that the home loan eligibility norms are exactly alike the Resident, except that there are two major differences:

Eligibility criteria for NRI Home Loan in HSBC
NRI Home Loan and Smart Home Loan
Co-applicant It is recommended to have a co-applicant who is a resident and a close blood relative of the applicant. Else a resident relative may be authorized with appropriate Power of Attorney.
Documentation It is elaborate compared to the residents

How to Apply for HSBC Bank Home Loan

The various modes of application for home loan at HSBC are:

  • Walk in to any of HSBC  branch.
  • Seek the help of Relationship Manager
  • Apply online and wait for the bank representative to call on you.
  • Call on HSBC Phone Banking numbers.

HSBC also has designed a suitable process flow for the application process which can be tabulated thus:

Application process flow
Sl No Sequence
1 Discuss requirement with HSBC
2 Submit application and PF cheque Rs.5000 + GST
3 Application processed and offer letter sent
4 Accept Letter and submit property documents
5 Loan processed and sanctioned
6 Signing of agreement and disbursal documents
7 Loan disbursed
8 HSBC Welcome Kit sent

Moreover, Housing.com can act as your one stop destination for home loans.

Document Checklist for HSBC Bank Home Loan

Documents common to all applicants
Type Particulars
Start Completed application form
KYC Self attested copies of  ID, Age and Address proof
Income Salaried

Salary certificate or slip for 3 months

Banks statement showing 3 salary credits

Self Employed Business

2 Years IT returns

P&L account statement and Balance sheet

Bank statement for primary account for 12 months

Partnership deed for partner

Self Employed Professional

2 Years IT returns

P&L account statement and Balance sheet

Bank statement for primary account for 12 months

Qualification Certificate

Property Documents All documents including tax receipts
Security Documents Appropriately stamped

 

Documents for NRI applicants
Type Particulars
Start Completed application form
KYC Self attested copies of  ID, Age and address proof
Salaried

Copy of valid Passport Visa stamped

Copy of valid Visa

Copy of work Permit

Copy of employment contract

Certificate for salary / wage

Bank statement showing salary credit

Bank statement of NRE / NRO account

Self Employed

Same as salaried; plus

Copy of trade license

P&L Account, Balance Sheet for 3 years

Valid income proof

Merchant Navy

Same as salaried; plus

Latest CDC (Continuous Discharge Certificate) for service of 3 years

 

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