HSBC Bank Home Loan
Home Loan Bank Information
Table of Contents
- HSBC Bank Home Loan Interest Rates
- Eligibility Criteria for HSBC Bank Home Loan
- HSBC Bank Home Loan Schemes
- HSBC Bank Home Loan Scheme for NRI or PIO
- How to Apply for HSBC Bank Home Loan
- Document Checklist for HSBC Bank Home Loan
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 | ||
|---|---|---|
| उत्पाद | 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 |
|
| Target Types |
|
| प्रॉपर्टी प्रकार |
|
| आयु | 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 |
|
| ऋण राशि |
|
| Loan Tenure |
|
| Processing Charges |
|
| Pre-payment Charges | Nil |
| Insurance | Mandatory against all perils to the property in favor of HSBC |
| Smart Home Loan | |
|
|
| 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) | शहर |
|---|---|---|
| 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 | ||||
|---|---|---|---|---|
| उत्पाद | 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 | ||
|---|---|---|
| टाइप | 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 | |
|---|---|
| टाइप | 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 |