HSBC Bank Loan Against Property
The HSBC loan against property makes sure that lack of finances don’t throw obstacles in your way to achieving purposes. The lender provides financial help by providing you the funds against residential property with which you can fund your expenses. Loan against property by HSBC comes at an attractive rate of interest and can be availed for an easygoing period of repayment that ranges up to 25 years. Anyone who is salaried or self employed can apply for this loan for a maximum amount of Rs 10 crore. To know more about the HSBC bank LAP, you can expand this section and read on.
HSBC Loan Against Property Interest Rates
|
Loan Amount |
Up to Rs 10 crore |
|
Interest Charges |
Starts at 8.35% per annum |
|
Processing Fees |
Up to 1% of the loan amount plus applicable taxes (minimum Rs 10,000) |
|
Tenure |
Up to 25 years |
|
Prepayment Charges |
Up to 3% of the outstanding principal |
HSBC Mortgage Loan Features & Benefits
Here’s the list of HSBC bank loan against property features that make reasons why it can be the best one for you:
- Purpose
You can apply for an HSBC loan against property to finance many of your personal purposes. Whether you want to fund the educational expenses or you need to look after medical bills, you can offer your residential property as collateral to the lender and raise funds to make your financial requirements fulfilled.
- Loan Amount
The minimum HSBC LAP amount you can apply for is Rs 3 lacs, while the maximum amount of loan is Rs 10 crore. However, the bank considers your income, credit history, property value, repayment track record and many other factors in order to come to the final loan amount for you.
- Rate of Interest
The HSBC mortgage loan interest rates start at 8.35% per annum. The rates are subject to the loan amount, loan repayment tenure, your credit history and many other checkpoints.
- Loan Repayment Tenure
HSBC offers quite an easy time to the borrowers when it comes to the repayment of this loan. The HSBC loan against property repayment tenure ranges up to 20 years for self employed borrowers and 25 years for the salaried borrowers.
- Prepayment
HSBC Bank mortgage loan prepayment facility allows you to pay the loan amount before the termination of your loan and reduce the burden of interest rates. If you prepay loan against property at floating rate then the bank charges zero prepayment fees.
When it comes to the prepayment of loan against property at fixed rate, the bank charges no prepayment fees for the loan amount up to 25%. If the amount is more than 25%, then a prepayment charge of 3% of the outstanding amount is applicable.
Fee and Charges of HSBC Bank Loan Against Property
To apply for a loan against property you have to pay fees and charges applied by the HSBC Bank. It covers all charges and fees made by a bank to their customers.The following charges are taken from HSBC Bank i.e processing fee, prepayment / foreclosure charges etc
|
TYPE |
CHARGES |
|
Processing Fee |
1% of the loan amount sanctioned or Rs. 10,000, whichever is higher |
|
Prepayment Charges (lock-in period of 6 months) |
For Floating Rate Loan Against Property: Nil For Fixed Rate Loan Against Property ? For up to 25% of the loan amount sanctioned in every financial year: Nil ? For amount more than 25% of the outstanding loan amount or more than one prepayment: 4% of amount prepaid |
|
Request for copy of property documents held with the bank |
Rs. 500 (Not applicable for HSBC Premier Customers) |
|
For Delayed installments on account of cheque, ECS or SI (standing instruction) dishonors |
Rs. 250 per instance |
|
Penal interest |
2% over and above the existing interest rate charged on the loan account for the amount which is overdue |
|
For conversion from MCLR/Base Rate/Retail Lending rate to RLLR |
Up to Rs. 5,000 |
|
Commitment Fees |
?Up to 1% fees on amount above 25% of the SHCF/SLCF sanctioned amount ?If the Excess Funds in the SHCF/SLCF account are more than 25% of the SHCF/SLCF sanctioned amount (‘Threshold limit’), then the Bank may at its sole discretion charge a Non-utilization/Commitment fee of 1% p.a. on the balance amount maintained over and above the Threshold |
Eligibility For HSBC Loan Against Property
We have mentioned the HSBC bank loan against property eligibility requirements that you have to match in order to be able to get the loan.
Here is the eligibility criteria for HSBC loan against property:
- Resident Indians and NRIs are eligible to apply for this loan.
- The loan is offered to the salaried and self employed individuals.
- Loan applicants should be at least 21 years of age at the time of loan commencement.
- Maximum age of salaried borrowers should be 60 years.
- Maximum age of self employed borrowers should be 65 years.
- Applicants must have a steady income.
Documents Required for HSBC Loan Against Property (LAP)
Here are the documents for HSBC bank loan against property that you need to submit along with the loan application:
|
Documents |
Salaried Applicants |
Self Employed Applicants |
|
Identity Proof |
Aadhar Card, Voter’s ID Card, Passport, Driving Licence |
Aadhar Card, Voter’s ID Card, Passport, Driving Licence |
|
Address Proof |
PAN Card, Voter’s ID Card, Passport, Driving Licence, Utility Bills such as Electricity, Telephone, Water Bills |
PAN Card, Voter’s ID Card, Passport, Driving Licence, Utility Bills such as Electricity, Telephone, Water Bills |
|
Income Proof |
Salary Slips, Bank Statements, Form 16 |
Balance sheet and profit and loss account, IT Returns, Business Proof |
|
Other Documents |
Passport-size Photographs, Duly Filled Application Form, Any Other Documents Required by the Bank |
Passport-size Photographs, Duly Filled Application Form, Any Other Documents Required by the Bank |
Compare other bank loan against property interest rate
|
BANKS |
INTEREST RATE |
|
Starts at 11.25% |
|
|
Starts at 10.85% |
|
|
Starts at 10.50% |
|
|
Starts at 11.25% |
|
|
10.65% to 16.25% |
|
|
9.50% to 13.50% |
HSBC Loan Against Property EMI Calculator
You can use the HSBC loan against property calculator to know the payable amount of loan against property EMI which you will have to pay for the loan. Calculating the EMI will help you plan and manage your budget and decide the repayment tenure. You can go to the official website of HSBC loan to calculate the HSBC loan EMI.
To make it quicker for you, it is recommended that you make use of BankSathi loan against property EMI calculator which asks you to input the loan amount along with the repayment period and rate of interest. All you have to do after that is hit the “Calculate” button and you will be able to see the monthly amount as well as the yearly calculation of your loan.
How to Apply for HSBC Bank Mortgage Loan?
Here is how to apply for HSBC loan against property:
- Apply for HSBC loan against property offline
In order to apply for a HSBC loan against property offline, you need to visit the nearest branch of the bank with all the required documents for the application.
- Apply for HSBC loan against property online
If you wish to apply for HSBC loan against property online then all you have to do is this:
- Go to the official website of HSBC bank.
- Now, click and expand the “Borrowing” menu.
- After that, click on the “Loan Against Property” option.
- Hit the “Apply Now” button.
- Fill in your details.
- Submit the form.
HSBC Bank Customer Care Number
Here are the HSBC bank customer care numbers which you can dial in case of further queries or assistance regarding the loan:
1800 266 3456, 1800 120 4722
FAQs On HSBC Loan Against Property (LAP)
Q.1 What are the interest charges for HSBC loan against property?
The HSBC loan against property interest rates start at 8.35% per annum.
Q.2 What is the processing fee for HSBC loan against property?
The HSBC loan against property processing fee is 1% of the loan amount (or 10,000) plus applicable taxes.
Q.3 How do I apply for HSBC home loan balance transfer?
You can reach out to the nearest branch of the bank in order to apply for home loan balance transfer. You can also go to the official website of HSBC bank to apply for balance transfer online
Q.4 Are there any prepayment charges for HSBC loan against property?
The bank does not charge any prepayment fees for loans at floating rate. If you prepay up to 25% loan at fixed rate, there will be no prepayment penalty. If the amount exceeds 25% then the bank will charge 3% of the outstanding principal amount.
Q.5 Can NRIs apply for an HSBC loan against property?
Yes. HSBC offers NRIs the loan against property. However, the bank may ask NRIs to have a resident Indian as co-applicant for loan against property. You can reach out to the bank for more information.
Last Updated on : 28/Apr/2021
