Home Loans Fees and Charges

• Annual Percentage Return (APR)
• Asset link (Overdraft against shares)
• Home Loan from HSBC / Smart Home / MyHome
• Interest rate range
• Loan Against Property / Smart Loan Against Property
• Marginal Cost of Funds based Lending Rate (M.C.L.R.)
• Repo Linked Lending Rate (R.L.L.R.)
• Services Offered* (Home Loan / Smart Home / LAP / Smart LAP)

With effect from 01 Dec 2024, the applicable Marginal Cost of Funds based Lending Rate (M.C.L.R.) will be as follows

Base rate (from 01 February 2023): 8.20%

The RLR is 14.95% p.a. effective 1 October 2022.

The Interest rate on your Floating Rate loan booked between 01 April 2016 and 30 September 2019 is linked to HSBC's (the Bank) published 3 month Marginal Cost of Fund based Lending Rate (MCLR) and will be reset on a three monthly basis. The 3 month MCLR is published by the Bank at the beginning of every month, which will be the benchmark rate for loans that are disbursed in that month. The floating rate of interest on all the loans disbursed by the bank will be reset at an interval of 3 months from the month of loan disbursal. It will be reset against the 3 month MCLR published by the bank in the month of reset. The reset will be done by the 7th calendar day of the month. (Refer to the example below.) A revision in the applicable rate of interest will lead to a revision in the Equated Monthly Instalment (EMI) or the loan tenure at the bank's discretion. The revised loan interest rate will be notified to you by SMS, or e-mail or letter as per the bank's prevailing policy; however SMS will be the preferred mode. Though the current benchmark rate applicable to your loan is the 3 month MCLR, the bank reserves the right to change the benchmark rate to a different maturity MCLR, with due notice to you.

The applicable rate of interest rate on your loan is the 3 month MCLR plus the margin (spread). The margin charged to you will not be increased throughout the tenure of the loan, except on account of deterioration in the credit risk profile of the borrower.

Example: Loans disbursed during Month 1 will be benchmarked against the 3-Month MCLR of Month 1. For all loans disbursed during Month 1, the interest will be reset in Month 4 against the 3-Month MLCR published at the beginning of Month 4 (by the 7th calendar day of Month 4). The interest rate will continue to be reset every 3 months, i.e. in Month 7, 10 of the year and so on. Similarly, all loans disbursed in Month 2 will be reset against the 3-Month MCLR published at the beginning of Month 5 (by 7th calendar day of the Month 5). This will continue to be reset every 3 months, i.e. in Month 8 and Month 11 of the year, and so on.

Please note that basis Goods and Services Tax (GST) regulations and notified GST rates, Central GST, State/Union Territory GST, or Inter-State GST, as applicable, and Cess as applicable would apply on our fees and charges.

Fees and charges are subject to change at the sole discretion of the bank.

¹This product is no longer offered by the bank. Information mentioned is for existing customers who have availed of MyHome product earlier.

Request for copy of property documents held with the bank: ₹500

Note: All above fees and charges are not applicable for HSBC Premier customers.

A total of 1% of the loan amount sanctioned or ₹10,000, whichever is higher, will be applicable as Processing Fee (plus applicable taxes*). The fee is collected in two parts: ₹5,000 + applicable taxes* is to be paid upfront along with the loan application and the balance Processing Fee amount + applicable taxes* is to be paid before disbursal of the loan. Processing Fee paid is non-refundable.

Penal Interest has been discontinued effective 1st January 2024. The Bank however, reserves the right to review its exiting fees and charges and introduce suitable Penal Charges for non-compliance to key terms and conditions in the loan agreement, after giving prior notice to borrowers.

Change of existing Benchmark Rate from MCLR/Base Rate/Retail Lending Rate to Repo Linked Lending Rate (RLLR)

For conversion from MCLR/Base Rate/Retail Lending rate to RLLR can be done with a one time nominal switch over charge/fees of up to INR 2500/- plus applicable taxes. For further details please contact your Relationship Managers or visit the nearest branch.

Prepayment / Foreclosure Charges

a) No Prepayment or Foreclosure charges applicable on floating rate Home loans and Smart Home Loans to individuals

b) For Fixed Rate Home Loans/Loan Against Property: Prepayment charges INR 5,000/- plus 5% of principal outstanding / amount prepaid is applicable.

c) Prepayment charges will be applicable in the following scenarios:

• A bulk payment (over and above EMI) that results in a drop in account limit.
• Any mid-term changes to the fixed rate loan account (for example: switching from fixed rate to floating rate loan).
• The entire fixed rate home loan being paid off before the end of the fixed rate period.

Commitment Fees

Up-to 1% fees on amount above 25 % of the Smart Home Loan with Commitment Fee/Smart LAP with Commitment Fee sanctioned amount. In the event if the Excess Funds in the Smart Home Loan with Commitment Fee/Smart LAP with Commitment Fee account are more than 25% of the Smart Home Loan with Commitment Fee/Smart LAP with Commitment Fee 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.

Example: If Non- utilization/Commitment fees is 1%, original sanctioned Smart Loan amount is INR20,00,000 and limit defined as 25% i.e. INR5,00,000/- In this scenario if the fund in the Smart Home Loan with Commitment Fee/Smart LAP with Commitment Fee account is INR6,00,000, then the Non- utilization/Commitment fees of 1% will be charged on INR1,00,000. (This is for illustration purpose only) 

Conversion Fees

A nominal fees of INR 5,000 plus applicable taxes are payable at the time of converting the loan from Normal to Smart, Smart to Normal or within different variants of Smart loan.

From floating rate to fixed rate

Charges applicable for switching between interest rate types.

• Floating rate to Fixed rate: INR 5,000/-.
• Stamp-duty / franking costs as applicable, will be borne by the borrower.
• For charges and other terms and conditions related to Fixed rate loans, please refer MITC.

From fixed rate to floating rate

Charges applicable for switching between interest rate types.

• Fixed rate to Floating rate: INR 5,000/- plus 5% of the principal outstanding.
• Stamp-duty / franking costs as applicable, will be borne by the borrower.
• For charges and other terms and conditions related to Fixed rate loans, please refer MITC.

Note

The interest rate on your floating rate loan, if disbursed on/after 01 October 2019 is linked to HSBC's Repo Linked Lending Rate (RLLR). HSBC's Repo Linked Lending Rate (RLLR) is pegged to RBI's repo rate, rounded off to the nearest 5 bps. The interest rate in loans which are linked to RLLR will undergo re-pricing (i.e. upwards or downwards as the case may be) in line with the movement of the RLLR. Repo rate is normally reviewed by the RBI's Monetary Policy Committee at intervals of two months. In case of change in Policy Repo Rate, RLLR will be changed in the beginning of the following month (by 7th calendar day of the following month). Consequent upon any change in RLLR, the rate of interest of loans linked to RLLR will undergo a change.

A revision in RLLR would typically lead to a revision in the Home Loan tenure, and the EMI would remain constant, however, the Bank reserves the right to change the loan EMI/tenor or a combination of both.

The revised loan interest rate, loan tenure and EMI will be notified to you by SMS, or e-mail or letter as per the Bank's prevailing policy; however SMS will be the preferred mode.

The applicable Rate of Interest rate on your loan is the RLLR plus the margin (spread). The margin charged to you will not be increased throughout the tenure of the loan, except on account of deterioration in the credit risk profile of the borrower.

Example: RLLR Linked Loan disbursed during Month 1 will be benchmarked against the RLLR of Month 1. The policy repo rate is reviewed by the RBI in the Monetary Policy Committee every 2 months. If the repo rate is changed by the RBI in month 1, the interest will be reset in Month 2 against the revised RLLR at the beginning of Month 2 (by the 7th calendar day of Month 2). If the repo rate is changed by the RBI in month 2, the interest will be reset in Month 3 against the revised RLLR at the beginning of Month 3 (by the 7th calendar day of Month 3).

Legal Charges

Expenses incurred on proceedings under SARFAESI Act/Proceedings under Sec138 of NI Act and/or other litigation on the account as per actuals applicable to an overdue/delinquent account.

Other Charges

Other incidental charges & expenses will be levied to cover the costs, charges, expenses, lawyers' charges and/or cost incurred on the litigation/any legal matter and all other cost that may have been incurred in connection with recovery of dues from delinquent accounts. As per actuals applicable to an overdue / delinquent account.

Note

Please be advised that applicable Indirect Taxes would be recovered on all our fees and charges and any other amount liable to tax under prevailing Indirect Tax Laws.

Charges are applicable for relevant services, for the associated savings/current account. Please refer to the tariff schedule for such accounts displayed on www.hsbc.co.in for details.

The charges are subject to change from time to time, at the sole discretion of HSBC. Any such change will be made with prospective effect post providing a month's notice. If we have made any change without notice, we will notify the change within 30 days. If such change is to your disadvantage, you may within 60 days and without notice, close your account without having to pay any prepayment charges. However, this would not be applicable to changes in finance charges (interest rates) and any charge levied as a result of regulatory requirements.

Penal Interest on Home loans, Smart home loans, Loan against property and Smart loan against property has been discontinued effective 1st January 2024. The Bank however, reserves the right to review its exiting fees and charges and introduce suitable Penal Charges for non-compliance to key terms and conditions in the loan agreement, after giving prior notice to borrowers.

The interest rate on your floating rate loan, if disbursed on/after 01 October 2019 is linked to HSBC's Repo Linked Lending Rate (RLLR). Any revision in the RLLR would impact your interest rate.

The interest rate on your floating rate loan, if disbursed on/after 01 April 2016 till 30 September 2019 is linked to HSBC's 3 month Marginal Cost of Fund based Lending Rate (MCLR). Any revision in the 3 month MCLR would impact your interest rate.

The interest rate on your floating rate loan, if disbursed on/after 01 July 2010 till 31 March 2016 is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate. 

The interest rate on your floating rate loan if disbursed prior to 01 July 2010 is linked to HSBC's Retail Lending Rate (RLR) and any revision in the RLR would impact your interest rate.

Request for copy of property documents held with the bank: ₹500 

Note: All above fees and charges are not applicable for HSBC Premier customers

Processing fee: A total of 1% of the loan amount sanctioned or ₹10,000, whichever is higher, will be applicable as Processing Fee (plus applicable taxes*). The fee is collected in two parts: ₹5,000 + applicable taxes* is to be paid upfront along with the loan application and the balance Processing Fee amount + applicable taxes* is to be paid before disbursal of the loan. Processing Fee paid is non-refundable.

Penal Interest on Home loans and Smart home loans has been discontinued effective 1st January 2024. The Bank however, reserves the right to review its exiting fees and charges and introduce suitable Penal Charges for non-compliance to key terms and conditions in the loan agreement, after giving prior notice to borrowers.

Annual Fee (only applicable for Smart LAP) 1% of limit outstanding payable on each loan anniversary⁴ till the loan is completely repaid.

Change of existing Benchmark Rate from MCLR/Base Rate/Retail Lending Rate to Repo Linked Lending Rate (RLLR)

For conversion from MCLR/Base Rate/Retail Lending rate to RLLR can be done with a one time nominal switch over charge/fees of up to INR 2500/- plus applicable taxes. For further details please contact your Relationship Managers or visit the nearest branch.

Pre-payment Charges

For LAP (Floating Rate) and Smart LAP (Floating Rate) Nil pre-payment charges.

Commitment Fees

Up-to 1% fees on amount above 25% of the SHCF/SLCF sanctioned amount. In the event 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.

Example: If Non-utilization/Commitment fees is 1%, original sanctioned Smart Loan amount is ₹20,00,000 and limit defined as 25% i.e. ₹5,00,000/- In this scenario if the fund in the SHCF/SLCF account is ₹6,00,000, then the Non-utilization/Commitment fees of 1% will be charged on ₹1,00,000. (This is for illustration purpose only)

Conversion Fees

A nominal fees of INR 5,000 plus applicable taxes are payable at the time of converting the loan from Normal to Smart, Smart to Normal or within different variants of Smart loan.

Note

1) The interest rate on your floating rate loan, if disbursed on/after 01 October 2019 is linked to HSBC's Repo Linked Lending Rate (RLLR). Any revision in the RLLR would impact your interest rate.

2) The interest rate on your floating rate loan, if disbursed on/after 01 April 2016 till 30 September 2019 is linked to HSBC's 3 month Marginal Cost of Fund based Lending Rate (MCLR). Any revision in the 3 month MCLR would impact your interest rate.

3) For processing prepayment requests, customers are required to send HSBC, a written instruction communicating their desire to prepay with their intent of wanting to reduce the loan tenure or EMI. In case no clear instruction is received to reduce loan tenure or EMI, we will by default reduce the loan tenure based on the prepayment amount received. In case excess funds/amounts are received towards the loan account without any written instructions from the customer to prepay, for SmartLAP the amount will be credited to the SmartLAP account and will impact the available balance in the account. However for Loan Against Property, such excess amounts will be apportioned towards the principal amount of the loan.

4) Fixed rate of interest is currently not offered on Smart Home and Smart LAP.

Legal charges

Expenses incurred on Proceedings under SARFAESI Act/Proceedings under Sec138 of NI Act and/or other litigation on the account as per actuals applicable to an overdue/delinquent account.

Other Charges

Other incidental charges & expenses will be levied to cover the costs, charges, expenses, lawyers' charges and/or cost incurred on the litigation/any legal matter and all other cost that may have been incurred in connection with recovery of dues from delinquent accounts. As per actuals applicable to an overdue/delinquent account.

Note: Please be advised that applicable Indirect Taxes would be recovered on all our fees and charges and any other amount liable to tax under prevailing Indirect Tax Laws.

Charges are applicable for relevant services, for the associated savings/current account. Please refer to the tariff schedule for such accounts displayed on www.hsbc.co.in for details.

The charges are subject to change from time to time, at the sole discretion of HSBC. Any such change will be made with prospective effect post providing a month's notice. If we have made any change without notice, we will notify the change within 30 days. If such change is to your disadvantage, you may within 60 days and without notice, close your account without having to pay any prepayment charges. However, this would not be applicable to changes in finance charges (interest rates) and any charge levied as a result of regulatory requirements.

Penal Interest has been discontinued effective 1st January 2024. The Bank however, reserves the right to review its exiting fees and charges and introduce suitable Penal Charges for non-compliance to key terms and conditions in the loan agreement, after giving prior notice to borrowers.

The interest rate on your floating rate loan, if disbursed on/after 01 April 2016 till 30 September 2019 is linked to HSBC's 3 month Marginal Cost of Fund based Lending Rate (MCLR). Any revision in the 3 month MCLR would impact your interest rate.

The interest rate on your floating rate loan, if disbursed on/after 01 July 2010 till 31 March 2016 is linked to HSBC's Base Rate. Any revision in the Base Rate would impact your interest rate.

The interest rate on your floating rate loan if disbursed prior to 01 July 2010 is linked to HSBC's Retail Lending Rate (RLR) and any revision in the RLR would impact your interest rate.

Annual Service Charges 1.5% of limit. 

Duplicate Statements ₹250 per statement.

Service Withdrawal Charge ₹200 per scrip (Max. ₹500 per withdrawal).

Unauthorized Overdraft/Overlimit 2% over and above the applicable interest rate.

Charge for unsuccessful execution of Standing Instruction for payment / Cheque bounce charge ₹250.

Note: The above is an extract of our tariff.

Switching options

From Home Loan to Smart Home and vice versa.

From floating rate to fixed rate and vice versa. Refer Most important terms and conditions (MITC) for Floating and Fixed rate Home Loans on our website for more details.

Other services

Request for change of EMI date, rescheduling of loans (increase/decrease in EMI/tenure)

Request for daily interest calculation details

Request for duplicate amortisation schedule

Request for duplicate copy of welcome pack (amortisation schedule plus facility advice letter plus list of documents)

Re-pricing request for an active account

Request for change of Standing Instructions, change of repayment mode (cheque swap charges)

Copy of track record 

Copy of Credit Information Report (CIR) 

* The services offered in this section are currently not chargeable to you.

Note

We reserve the right to vary charges or fees from time to time by giving you prior notice of not less than 30 days for any variation affecting fees and charges under our control or affecting your liabilities or obligations or for such reasonable period as we may specify in the case of other variations. We will immediately update, on our website, any changes to the tariff.

If we have made any change without notice, we will notify the change within 30 days. If such change is to your disadvantage, you may within 60 days of the notice, close your account without having to pay any prepayment charge.

We would not be bound by a month's notice for change in interest rates or any charge levied as a result of regulatory requirements.

* Mean Rate of Interest is calculated as simple average of Rate of Interest