HSBC Bank Loan Against Property

HSBC Bank provides Loan Against Property to both salaried and self-employed individuals at floating interest rates starting from 9.75% p.a. The loan amounts can go up to 30 crores, with a repayment tenure of up to 25 years. Additionally, HSBC Bank offers the LAP overdraft facility, known as Smart Loan Against Property, at interest rates of 9.85% p.a. and 10.10% p.a. Applicants can also enjoy the benefits of HSBC Premier without maintaining any minimum balance during the loan tenure if the initial amount is more than Rs 1.15 crore.

HSBC Bank Loan Against Property Highlights
Interest Rate

LAP:

  • Floating Interest Rates: 9.75% p.a.
  • Fixed Interest Rates: 14.00% p.a.

Smart LAP:

  • 9.85% p.a. (with commitment fee)
  • 10.10% p.a. (without commitment fee)
Loan Amount Rs 40 crore
Repayment tenure Up to 25 years
Processing Fees Up to 1% of the loan amount or Rs 10,000, whichever is higher

HSBC Bank Loan Against Property Interest Rates

HSBC Bank offers loans against property at floating interest rates starting from 9.75% p.a. and fixed interest rates starting from 14.00% p.a. The actual interest rate offered to the loan applicant may vary based on factors such as credit score, monthly income, job profile, employer’s profile, etc.

With commitment fee - 9.85% p.a.

Without commitment fee - 10.10% p.a.

Also read: Best Loan Against Property Interest Rate

Compare Interest Rates on Loan Against Property for Top Banks & HFCs

Name of the Lender Interest Rate (% p.a.)  
State Bank of India 10.00 - 11.30 Apply Now
Axis Bank 10.50 - 10.95 Apply Now
Bank of Baroda 10.85 - 16.50 Apply Now
ICICI Bank 10.85 - 12.50 Apply Now
Standard Chartered Bank Starts from 9.25% Apply Now
HSBC Bank 9.75 - 14.00 Apply Now
Union Bank of India 10.45% - 13.10% p.a. Apply Now
PNB Housing Finance 9.25 - 15.00 Apply Now
IDFC First Bank 9.00 - 16.50 Apply Now
HDFC Bank Limited 9.50 - 11.00 Apply Now
L&T Housing Finance 9.50 onwards Apply Now
LIC Housing Finance 9.50 - 11.55 Apply Now
Godrej Housing Finance 9.75 onwards Apply Now
Indiabulls Finance 9.75% p.a. onwards Apply Now
Tata Capital 10.10 onwards Apply Now
Bajaj Housing Finance 9.75 - 18.00 Apply Now
Punjab National Bank 10.40 - 12.75 Apply Now

HSBC Bank Types of Loan Against Property

Normal Loan Against Property

  • Purpose: The loan serves to provide financing for a variety of personal and business needs.
  • Loan Amount: Borrowers can secure loans of up to Rs 40 crore.
  • Tenure: For self-employed individuals, the tenure is 15 years, while for salaried individuals, it extends up to 25 years.

Smart Loan Against Property

  • Purpose: The loan against property is provided as an overdraft facility, with a sanctioned credit limit equivalent to the loan amount. Borrowers can withdraw from this limit as needed to fulfill personal and business needs.
  • Loan Amount: Borrowers can avail loans of up to Rs 40 crore.
  • Tenure: The tenure for this facility extends up to 15 years.

Also read: Best Loan Against Property EMI Calculator

HSBC Bank Loan Against Property Fees and Charges

Particulars Charges
Processing Fee The processing fee for the loan is 1% of the sanctioned loan amount or Rs 10,000, whichever is higher. This fee is collected in two parts: an upfront payment of Rs 5,000 plus taxes with the loan application, and the remaining balance plus taxes is payable before the loan disbursal.
For Smart LAP NIL
For floating rates LAP NIL
For fixed rate LAP There are no charges applicable for part-prepayment up to 25% of the outstanding loan amount once in every financial year.
For an amount in excess of 25% of the outstanding loan amount or more than one prepayment, a charge of 4% of the prepayment amount is applicable.
Penal interest A penalty of 2% is applied on top of the existing interest rate charged on the loan account for any amount that is overdue.
Annual fee (only for Smart LAP) A fee of 1% of the outstanding limit is payable on each loan anniversary until the loan is completely repaid.
Cheque, ECS or SI (standing instruction) dishonors Rs 250 per instance
Debit card charges Rs 250 p.a.
Request for copy of documents held with the bank Rs 500
For conversion from MCLR/Base Rate/Retail Lending rate to RLLR Up to Rs 5,000 + taxes
Conversion fee (Normal to Smart, Smart to Normal or within different variants of Smart) The charge is 0.50% of the outstanding limit or the current account limit, whichever is higher, plus applicable taxes.
Commitment fee For amounts above 25% of the Smart Loan Against Property (Smart LAP) with Commitment Fee, a fee of up to 1% is applicable. If the excess funds in the Smart LAP with commitment fee exceed 25%, a fee of 1% p.a. is charged on the balance amount maintained over and above the threshold.

HSBC Bank Loan Against Property Eligibility Criteria

For salaried applicants:

  • Minimum age: 21 years
  • Maximum age: 58 years (60 years for public limited/government employees)
  • Minimum net income: Rs 5 lakh per annum

For self-employed applicants:

  • Minimum age: 21 years (at loan application)
  • Maximum age: 65 years (at loan maturity)
  • Minimum net income: Rs 7.5 lakh per annum

Also read: Best Loan Against Property Eligibility

HSBC Bank Loan Against Property Documents Required

Common Documents:

  • Age Proof (any one): Passport, Driving License, PAN Card
  • Completed application form with one passport size photograph
  • Identity proof (any one): Passport, Voter’s ID, Permanent driving license, PAN Card, Aadhaar Card
  • Residence Proof (any one): Passport, Voter’s ID, 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

Income Documents for Salaried individuals:

  • Latest 3 months’ salary slips showing statutory deductions
  • Bank statements for the last 3 months showing the last 3 salary credits

Income Documents for Self-Employed Individuals:

  • Primary bank account statements for the last 6 months
  • Acknowledged IT returns for the last 2 years (including e-acknowledgement)
  • For partners of the partnership firm, additionally, the Partnership Deed is required
  • P&L account, balance sheet certified/audited by a CA, and computation of income for the last 2 years with all annexures and auditor’s report
  • For Directors of the Private Limited companies, additionally required: Shareholding Pattern or Memorandum and Articles of Association duly attested by a CA and List of Directors

Income Documents Required for NRI self-employed (all documents should be self-attested):

  • Passport copy with valid Visa stamp
  • Trade license or equivalent document
  • Local bureau report of the country/region where the customer is based
  • Brief profile of the applicant and business in the specified format
  • 6 months overseas bank account statements and NRE/NRO account statements
  • Computation of income, P&L account, and balance sheet for the last 3 years certified by a CA/CPA or any other relevant authority as the case may be (or equivalent company accounts)

Documents for Merchant Navy:

  • Primary bank account statements for the last 3 months
  • Latest contract copy. If on 'home port' for more than 6 months this year, future contract copy is required
  • Latest Continuous Discharge Certificate (CDC) for 3 years’ employment proof
  • Copy of passport for proof of identity
  • Local bureau report of the country/region where the customer is based (applicable if the country/region of residence is other than India.

Consultant/Self-employed professionals:

  • Primary bank account statements for the last 6 months
  • Acknowledged IT returns for the last 2 years (including e-acknowledgement)
  • P&L account, balance sheet certified/audited by a CA, and computation of income for the last 2 years with all annexures and auditor’s report

Income Documents Required for NRI salaried (all documents should be self-attested):

  • 3 months NRE/NRO account statements
  • Latest contract copy evidencing salary/salary certificate/wage slips
  • Overseas bank account statements for the last 3 months showing salary credits
  • Local bureau report of the country/region where the customer is based
  • Copy of valid Indian passport showing Visa stamps or copy of foreign passport/equivalent documents
  • Copy of valid Visa/work permit/equivalent documents supporting the NRI status of the applicant account holder

Also Read : Best Loan Against Property Documents Required

Frequently Asked Questions

The loan application processing typically takes about 16 days from start to finish. Here's the breakdown: - Initial Processing: 5 days for document submission, legal scrutiny, and property valuation. - Legal Scrutiny: Time varies by state. - Post-Approval Processing: Minimum of 4 days after document submission. - Disbursal: Loan disbursal within 2 days after submitting the completed agreement and necessary documents.

You can repay the loan in various ways, such as debiting your NRE/NRO account, using funds from your FCNR deposit, debiting a bank account belonging to a close relative, or through foreign inward remittance.

The current starting mortgage rate at HSBC is 9.75% per annum.

The current interest rate for a loan against property at HSBC Bank starts at 9.75% per annum.

To make pre-payments on your HSBC Loan Against Property account, you need to submit a written request specifying whether you want to reduce the EMI or shorten the tenure. If no instructions are provided, the bank will typically reduce the loan tenure based on the pre-payment amount. In the case of excess credit received in your Smart Loan Against Property account without any instructions, the surplus amount will be applied towards reducing the principal balance only.

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