Loan Against Property

HSBC IN
Types of Housing Loans
Loan Against Property

Why choose a Loan Against Property?

You strive to seize every opportunity and often lack of funds becomes a hindrance in achieving your goals. With Loan Against Property (LAP) from HSBC you can raise funds easily against your residential or commercial property.

Loan requirement - Loans up to INR 600,000,000¹
Loan tenure - Tenor of up to 15 years
Simple documentation

Interest rates

Floating rates. Speak to a relationship manager for more details.

9.45% p.a.

Salaried + Self-employed

Fixed rates. Speak to a relationship manager for more details

14.00% p.a.

Salaried + Self-employed

Fees and charges

Processing Fees: A total of 1% of the loan amount sanctioned or INR10,000, whichever is higher, will be applicable as processing fee (plus applicable taxes²). The fee is collected in two parts: INR5,000 + applicable taxes² is to be paid upfront along with the loan application and the balance processing fee amount applicable taxes² is to be paid before disbursal of the loan. Processing fee paid is non-refundable.

Prepayment charges for Loan Against Property
Details	Fees
For floating rate Loan against Property	No pre-payment charges

Prepayment charges for Loan Against Property
Details	For floating rate Loan against Property
Fees	No pre-payment charges

Prepayment charges for Fixed Rate Loan Against Property^*
Type	Charge
For Fixed rate Loan against Property	INR 5,000/- plus 5% of principal outstanding / amount prepaid plus applicable taxes. Prepayment charges will apply 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.

Prepayment charges for Fixed Rate Loan Against Property^*
Type	For Fixed rate Loan against Property
Charge	INR 5,000/- plus 5% of principal outstanding / amount prepaid plus applicable taxes. Prepayment charges will apply 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.

^* To know more on fees and charges applicable to fixed rate Home loans and Loan Against Property, please refer to Most important terms and conditions (MITC) for Floating and Fixed rate Home Loans.

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 EMI³. In case no clear instruction is received to reduce loan tenure or EMI, we will be default reduce the loan tenure basis the prepayment amount received.

Read more details on the applicable fees and charges.

Eligibility

To qualify for a Loan against Property from HSBC, the following criteria apply

Minimum net income INR500,000 p.a (salaried)⁴ or INR750,000 p.a (self-employed)
Minimum age (in years) 21
Maximum age (in years) on maturity of loans 58 (salaried), or 60 (public limited/government employees), or 65 (self-employed)
Minimum loan amount¹ INR300,000
Maximum loan amount¹ INR 600,000,000
Maximum tenure (in years) 15 years. For salaried applicants 25 years

Insurance

You would need to insure your property with an insurance company against loss by fire, earthquake, floods and other damages with The Hongkong and Shanghai Banking Corporation Limited, India, as the beneficiary.

End use of funds sanctioned by HSBC as LAP

The funds sanctioned by HSBC as LAP may be used for business and general needs. However, the funds should not be used for illegal or speculative purpose(s).

Apply for a Loan Against Property

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Fill out the callback form and we'll phone you back to discuss your application for an HSBC loan against property.

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You can also apply at your nearest HSBC branch. We'll be happy to answer any questions and help you get started with your application.

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Useful information

Fees and charges Modal link

Frequently asked questions

Below example highlights how the interest on your loan is calculated.

Note: Calculations for INR2,500,000 at an interest rate of 8.55% p.a. for 15 years. EMI is INR 24,692 which consists of interest and principal components as mentioned below

Interest calculation
Month	Outstanding balance (INR)	EMI (INR)	Interest (INR)	Principal (INR)
Month 1	2,500,000	24,692	18,154	6,538
Month 2	2,493,462	24,692	18,107	6,585
Month 3	2,486,877	24,692	18,059	6,633

Interest calculation
Month	Month 1
Outstanding balance (INR)	2,500,000
EMI (INR)	24,692
Interest (INR)	18,154
Principal (INR)	6,538

Month	Month 2
Outstanding balance (INR)	2,493,462
EMI (INR)	24,692
Interest (INR)	18,107
Principal (INR)	6,585

Month	Month 3
Outstanding balance (INR)	2,486,877
EMI (INR)	24,692
Interest (INR)	18,059
Principal (INR)	6,633

Note: Rate of interest, EMI etc shown is for illustration and actual interest rate charged to your account may vary. Interest is calculated on daily reducing balance charged on monthly basis. Monthly interest amount = [outstanding loan balance] multiplied by [rate of interest] multiplied by [no. of days in the month/no. of days in the year].

The Interest rate on your Floating Rate LAP disbursed from 01 October 2019 onwards is linked to Repo linked Lending Rate (RLLR). Repo linked Lending Rate (RLLR) is an external benchmark linked lending rate for floating rate mortgage loans.

HSBC's RLLR is linked to RBI’s published repo rate rounded off to the nearest 5 bps

The RLLR will be published by the bank at the beginning of every month and it will be the benchmark rate for RLLR linked LAPs that are disbursed in that particular month
Rate of Interest for mortgage linked to the RLLR will be RLLR plus the margin (spread) as determined by the bank from time to time and will be reset when there is a change in the policy repo rate by RBI and consequently the RLLR. The rate of interest reset will be done by the 7th calendar day of the following month from RBI’s announcement of change in Repo Rate
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 RLLR, the bank reserves the right to change the benchmark rate to a different external benchmark, with due notice to you
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: A RLLR Linked LAP disbursed during month 1 will be benchmarked against the RLLR of month 1. 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).

Loan repayment is through Standing Instruction/Letter of authority to debit your HSBC savings/current account for the Equated Monthly Instalment (EMI).

Credit approval timelines
Home loan	Turnaround time (working days)
Application processing (pre-approval)	Within 5 days of submitting complete documents
Evaluation of the property i.e. valuation and legal evaluation	From 3 days (onwards) of submitting copies of complete property documents
Loan processing (post-approval)	Within 4 days of submitting complete documents
Loan disbursal	Within 2 days of submitting duly stamped and completed loan agreement and other required documents

Credit approval timelines
Home loan	Application processing (pre-approval)
Turnaround time (working days)	Within 5 days of submitting complete documents

Home loan	Evaluation of the property i.e. valuation and legal evaluation
Turnaround time (working days)	From 3 days (onwards) of submitting copies of complete property documents

Home loan	Loan processing (post-approval)
Turnaround time (working days)	Within 4 days of submitting complete documents

Home loan	Loan disbursal
Turnaround time (working days)	Within 2 days of submitting duly stamped and completed loan agreement and other required documents

Timelines for legal evaluation are different for various states and can be known from the representative who is managing your loan application.

These timelines should be considered along with the detailed terms and conditions mentioned in the mortgage account opening form.

Debit to their NRE account/NRO account/Inward remittance/liquidation of FCNR/sales proceeds of immovable property on which loan was granted/Close relative's bank account.

The HSBC savings / current account used for the repayment of the loan comes without the requirement to maintain any minimum balance in the account during the tenure of the loan.

If the initial loan amount is greater than INR 11,500,000, you can avail of benefits of HSBC Premier, without the requirement to maintain any minimum balance in the account during the tenure of your loan - get a dedicated RM for all your banking needs, exclusive wealth management services and much more.

Find out more about HSBC Premier

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Important information

All documents need to be self-attested

Completed application form with one passport-size photograph.
Proof of Identity (PI) (any one of the following):
1. Passport
2. Election/Voter’s ID
3. Permanent driving license
4. Permanent Account Number (PAN) card
5. Aadhaar Card
Proof of Present Residential Address (PRA) (any one):
1. Passport
2. Election/Voter’s ID
3. Permanent driving license
4. Society outgoing bill (only from registered societies)
5. Electricity/water/telephone bill
6. Gas bill (pipeline connection only)
7. Property tax bill
8. Domicile certificate with address issued by Municipal Corporation
  The above PI and PRA is an indicative list and final documents acceptable are based on HSBC's policy as applicable at the time of application of the loan. For more details, you can speak to your Relationship Manager (RM) or visit the nearest branch.
  Note: If the address on the document submitted as PI by the prospective customer is the same as that declared by him/her in the application form, the document may be accepted as a valid proof of both PI and PRA. If the address indicated on the document submitted for PI differs from the address mentioned in the Application Form, a separate proof of PRA should be obtained.
4. Proof of age (any one):
1. Passport
2. Permanent driving licence
3. PAN Card

The above proof of age is an indicative list and final documents acceptable are based on HSBC’s policy as applicable at the time of application of the loan. For more details, you can speak to your Relationship Manager (RM) or visit the nearest branch.

Financial/Income documents required for Resident Indian

All documents need to be self-attested

Listed below are the basic documents required, for more details please speak to your Relationship Manager or visit the nearest HSBC branch.

Salaried individuals:

Latest 3 months' salary slips showing statutory deductions and
Bank statements for last 3 months showing last 3 salary credits

Self-employed individuals:

Acknowledged IT returns for last 2 years (including e-acknowledgement)
P&L account, balance sheet certified/ audited by a CA and computation of income for last 2 years with all annexures and auditor's report
Primary bank account statements for last 6 months
For partners of the partnership firm, additionally Partnership Deed is required
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

Consultant / Self-employed Professional:

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

Financial/Income documents required for Non Resident Indian (NRI)

All documents need to be self-attested

Listed below are the basic documents required, for more details please speak to your Relationship Manager or visit the nearest HSBC branch.

Salaried:

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
Latest contract copy evidencing salary/salary certificate/wage slips
Overseas bank account statements for last 3 months showing salary credits
3 months NRE/NRO account statements
Local bureau report of the country/region where customer is based

Working in Merchant Navy:

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
Primary bank account statements for last 3 months
Local bureau report of the country/region where customer is based (applicable if country/region of residence is other than India)

Self-employed:

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

Note: The above stated requirements/documentation is subject to change and is at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India (HSBC).

Terms & Conditions

All loans are subject to terms and conditions and are at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India (HSBC). Currently Home Loan is available for properties in and around the city limits of (sourcing cities) Ahmedabad, Bengaluru, Chandigarh, Chennai, Coimbatore, Hyderabad, Jaipur, Kolkata, Kochi, Mumbai, New Delhi (NCR) and Pune and is subject to change from time to time.

Loan anniversary is the date and month on which the loan was disbursed. Example: If your loan was disbursed on 20 May 2012. Then every year, 20 May will be the loan anniversary.

¹ The minimum and maximum loan depends on customer’s relationship with HSBC, city of property and property type. Loan amount of upto INR 600,000,000 only for existing HSBC Top Tier customers for properties in Mumbai/Delhi/Bengaluru, upto INR 200,000,000 for properties in Pune, Hyderabad and Chennai, and upto INR 150,000,000 for other locations. For HSBC Premier customer maximum loan amount of INR150,000,000 for properties in Mumbai/Delhi and INR 100,000,000 for all other sourcing cities for ready and under construction properties. For other customers loan amount of upto INR100,000,000 for ready and under-construction properties in Mumbai, New Delhi (NCR), and INR75,000,000 for ready and under construction properties in Bengaluru, Chennai, Pune, Ahmedabad, Chandigarh, Jaipur, Hyderabad and Kolkata (however we do not fund under construction property in Kolkata). The minimum agreement and market value of the property to be funded for Mumbai and Delhi is INR2,500,000 and for all other sourcing cities is INR1,500,000.

Equated Monthly Instalment (EMI) means the amount of monthly payment consisting of principal and interest necessary to amortise the loan amount with applicable interest within such period as may be determined by the Bank from time to time.

To meet the minimum income criteria, income of two salaried applicants can be clubbed.

² 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.

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 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.

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

Existing HSBC Mortgage customer who wish to link their Floating rate loans to RLLR from their existing benchmark rates of MCLR/Base Rate/Retail Lending Rate can do so by approaching their Relationship Managers or visiting their nearest branch for more details. A one time nominal switch over charge / fees of up to INR 2500/- plus applicable taxes would be charged. The application form for conversion can be found here.

Most important terms and conditions (MITC) for Floating and Fixed rate Home Loans (PDF, 156 KB) are displayed on the website for your reference. A copy of the same is also available at our Branches.

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.

Our Centralised Registration Number is AAACT2786PST001.

Why choose a Loan Against Property?

Interest rates

Fees and charges

Eligibility

Insurance

End use of funds sanctioned by HSBC as LAP

Apply for a Loan Against Property

Get an immediate callback

Apply in an HSBC branch

Useful information

Documents & links

Frequently asked questions

How is interest calculated?

How is the loan repayment processed?

How long does it take for my credit to be approved?

If I am a Non Resident (NRI) how can I pay my loan?

What are the banking benefits of a Loan Against Property

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Important information

Documentation

Terms & Conditions

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