HSBC Bank Home Loan Interest Rate April 2023
HSBC offers a variety of home loan products designed for Indian citizens and NRIs (Non-Resident Indians) for loans of up to ₹40 crore. HSBC home loan interest rates currently start from 8.75% and 8.85% for salaried and self-employed borrowers, respectively. HSBC balance transfer home loan rates start at 8.6% p.a where you can get a top-up loan of up to 150% of the loan amount at the same rate.
The maximum tenure for an HSBC home loan extends up to 25 years for salaried, and 20 years for self-employed applicants.
This article will take you through the updated HSBC home loan interest rates in 2023 and other important details.
HSBC Bank Home Loan Interest Rates 2023 Highlights
| HSBC Home Loan Type | Interest Rate (p.a.) |
| Home Loan | 8.75% onwards (for salaried) 8.85% onwards (for self-employed) |
| Smart Home | 9% or 9.4% onwards (for salaried) 9.1% or 9.5% onwards (for self-employed) |
| NRI Home Loans | 8.60% onwards |
| Sustainable Mortgages | 8.5% onwards |
HSBC Home Loan Interest Rate Calculator
It is very important to calculate your home loan EMI before applying. This helps you get an idea of how much money you would need to repay to the bank over the loan tenure. Furthermore, by knowing your EMI beforehand, you can plan your future finances more precisely. This will allow you to save a sufficient amount for emergency needs and other requirements without disturbing your repayment schedule.
You can do this calculation manually using the mathematical formula or go for an online home loan EMI calculator, like the one mentioned below, for instant and accurate results. This is a free online tool where you would simply need to enter your loan amount, interest rate (p.a.), and tenure (in years). The online calculator will instantly display your EMI amount, total interest and total repayment (principal + interest).
Calculate Your Union Bank Home Loan EMI
Loan Amount
Rate of Interest (P.a)
%
Loan Tenure (Years)
Years
Monthly EMI
0
Total Interest
Total Amount
The Navi Home Loan Calculator also provides the repayment schedule which would help you to plan your EMI repayments better. It is important to note that the calculator will only assume a uniform interest rate for all repayments. Therefore, its result might vary from reality if you are opting for a home loan with floating interest rate.
For example, let’s assume that you have opted for a home loan of ₹60 lakh at 9.15% per annum for 25 years. Your monthly EMI will be ₹50,970, total interest will be ₹92,90,855 and total amount ₹1,52,90,855.
Factors that Affect HSBC Home Loan Interest Rate
Here are some of the essential factors that affect the home loan interest rate of HSBC Bank:
1. CIBIL Score
CIBIL score reflects a person’s creditworthiness and capability to repay the dues on time. Lenders usually consider CIBIL scores above 750 as a healthy score which could not just help in faster loan approvals but also in getting the lowest applicable interest rates. In contrast, a score of 600 could translate to a higher applicable interest rate at best to loan application rejection at worst, depending on how low the score is.
2. Loan Tenure and Amount
Loan amount and tenure are two important parameters that help determine HSBC India home loan interest rates. If you are opting for a large loan for an extended tenure, you will be charged a higher rate of interest. However, for a shorter tenure, your interest rates may be lower.
3. Location of Property
Your property’s location, whether it is in a small town or metro city, will largely impact the price and interest rate of a home loan. A property with a high resale value reduces the lender’s risks considerably. Thus, a property located centrally in a metropolitan city will end up fetching lower interest rates.
4. Income
Lenders will also look into the net income of your household when deciding your loan eligibility. If your family has multiple sources of income, you will be seen as a low-risk borrower. If you have a salaried job at a reputable organisation, it will help you secure your desired loan amount with a low-interest rate. For example, HSBC home loans’ eligibility criteria is ₹5 lakh for salaried applicants, and ₹7.5 lakh for self-employed borrowers.
5. Type of Occupation
Interest rates can vary between individuals depending on their occupation. This means a self-employed individual’s interest rate will be different from a salaried individual with a regular income.
Also Read
HSBC Home Loan Rates for NRI
HSBC offers attractive home loan benefits for NRIs to help them finance the purchase of a property in India. Applicants can connect with their respective city’s bank branch to know about the HSBC Bank home loan interest rates. Here is a table highlighting the details of HSBC home loans for NRIs.
| Types of applicants | NRI individual with local co-applicant or contact person |
| Age | 21- 60 years |
| Loan amount | ₹3,00,000 to ₹40,00,00,000 |
| Loan tenure | Up to 25 years |
| Interest rate | 8.6% p.a. onwards |
| Eligible for | Purchase of ready-to-move properties and approved under-construction properties |
| Other benefits | HSBC balance transfer facilityZero prepayment and foreclosure chargesHSBC Premier for home loans of over ₹1,15,00,000 |
| Processing fee | 1% of loan amount or ₹10,000, whichever is higher |
HSBC Home Loan Interest Rate for Salaried
Here are the home loan interest rates for salaried individuals:
| Type of home loan | Interest rates (p.a.) |
| Home loan | 8.75% onwards |
| Smart home loan | 9.00% onwards |
| NRI Home Loan | 8.60% onwards |
| Sustainable Mortgages | 8.5% onwards |
HSBC Home Loan Interest Rate for Self Employed
Here are the home loan interest rates for self-employed borrowers:
| Type of home loan | Interest rates (p.a.) |
| Home loan | 8.85% onwards |
| Smart home loan | 9.10% onwards |
| NRI Home Loan | 8.60% onwards |
| Sustainable Mortgages | 8.5% onwards |
HSBC Home Loan Interest Rate Comparison with Other Bank
The following table lists the home loan interest rates of different Indian banks:
| Banks | Interest rates |
| HSBC | 8.60% – 9.65% |
| State Bank of India | 9.15% – 10.45% |
| Bandhan Bank | 9.15% – 13.32% |
| Axis Bank | 8.75% – 14% |
| Canara bank | 9.25% – 11.25% |
| Bank of Baroda | 9.15% to 10.60% |
| Union Bank of India | 9% – 10.70% |
| Kotak Mahindra Bank | 8.85% – 9.40% |
| HDFC Bank | 8.95% – 9.85% |
| Punjab National Bank | 8.60% – 9.35% |
| ICICI Bank | 9.25% – 10.05% |
Features and Benefits of HSBC Home Loan
Take a look at the best features and benefits of HSBC home loans:
1. Home Loan for all Requirements
You can opt for an HSBC home loan to aid any kind of property purchase. Loans are available for ready-to-move and approved under-construction properties. You can also get a loan against residential or commercial properties.
2. Loan Transfer Facility
You can choose to switch to HSBC with the home loan transfer facility. This will allow you to repay your dues in a shorter tenure and get lower interest rates, currently starting at 8.6% p.a.
3. Attractive Interest Rates
Home loan interest rates for HSBC range from 8.75%-8.85%, which are quite competitive.
4. No Prepayment Charges
You can pre-pay your EMI any time before the due date without any prepayment charge for floating-rate home loans.
5.Long Loan Tenure
HSBC offers home loans with an extended tenure of up to 25 years. You can repay your loan by paying EMIs throughout the tenure without burdening your finances.
Different Types of Home Loans Offered by HSBC
HSBC offers a range of home loan schemes that start with an interest rate of 8.75% per annum. The attractive HSBC housing loan interest rates allow borrowers to save more on their EMIs. They can also reduce their interest rates and loan tenure by transferring their existing loan to HSBC through a balance transfer. Here is a list of different types of home loans that HSBC has to offer.
1. Home Loan
This is the standard home loan scheme that allows you to buy the house of your dreams with competitive interest rates. Resident Indians and NRI can opt for any fully constructed house or select properties under construction. Below are the details of this loan:
- Type of Applicant: Indian residents, NRI
- Age: 21 years- 65 years
- Loan Amount: ₹3,00,000- ₹4,00,00,000
- Loan Tenure: Up to 25 years
- CIBIL Score: 700-750
- Processing Fee: 1% of home loan amount or ₹10,000
- Interest Rate: Starting from 8.60% or 8.85% per annum
2. Smart Home Loan
This loan facility brings with it an overdraft limit which is equal to the amount you borrowed as a home loan. You will have a Smart Home Loan account to make savings. Depending on your savings, you can opt to reduce the quantum of interest paid, thus reducing your loan tenure. Here are the details of this loan.
- Type of Applicant: Indian residents, NRI
- Age: 21 years- 65 years
- Loan Amount: ₹3,00,000- ₹4,00,00,000
- Loan Tenure: 25 years
- CIBIL Score: 700-750
- Processing Fee: 1% of the home loan amount or ₹10,000
- Interest Rate: Starting from 9% or 9.10% per annum
3. NRI Home Loans
This home loan can help fulfil your dream to own your summer villa in any corner of India. HSBC NRI Home Loan is a ladder to your plans of holding a property in India. You can also reduce your existing loan tenure by opting for a home loan balance transfer. Following are the details of HSBC NRI Home Loans.
- Type of Applicant: NRI
- Age: 21 years- 60 years
- Loan Amount: ₹3,00,000- ₹40,00,00,000
- Loan Tenure: 25 years
- CIBIL Score: 700-750
- Processing Fee: 1% of home loan amount or ₹10,000
- Interest Rate: Starting from 8.60% per annum
4. Sustainable Mortgages
With the commitment towards a zero-carbon future, HSBC offers sustainable mortgages to climate-conscious home loan applicants. When you opt for a certified sustainable property as your residence, you will get additional benefits like lower interest rates and zero processing fees. Here are the details of this loan:
- Type of Applicant: Indian residents, NRI
- Age: 21 years to 65 years
- Loan Amount: Up to ₹40,00,00,000
- Loan Tenure: Up to 25 years
- CIBIL Score: 700-750
- Processing Fee: Nil
- Interest Rate: Starting from 8.5% per annum
How to Apply for HSBC Home Loan?
Follow the given steps to apply:
Step 1: Log In
Visit the bank’s website or download its mobile application and sign up. Enter your username and password to log in. If you do not have an account already, select ‘No’ in the dialogue box asking whether you are an existing customer.
Step 2: Keep Your Documents Ready
As you start filling up the basic information and property details, keep the property-related documents in hand. Enter the amount you wish to avail as home loan. You will need to submit scanned copies of your documents if you are applying through a website or app. If you are visiting an HSBC branch, consider carrying all your property-related documents and KYC documents with you.
Step 3: KYC Verification
After submitting these documents, an associate from the bank will conduct KYC verification. He/she might visit your address or call you to conduct a telephone verification. For an online application, HSBC may ask for an e-KYC instead of physical verification. Under this procedure, you will have to upload a video of yourself as per the given instructions.
Step 4: Mobile Number Verification
You will receive an OTP on your registered mobile number. Enter the same in the required field for verification.
Step 5: Pay the Security Charges
Pay the necessary security charges to book the offer available and wait for your home loan application to be sanctioned from the bank’s end.
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HSBC Home Loan Eligibility
- Resident Type: Resident Indian, NRIs
- Age: 21-65 years
- Loan Amount: ₹3 lakh to ₹40 crore
- Type of occupation: Self-employed and salaried
- Income: ₹5 lakh for salaried individuals and ₹7.5 lakh for self-employed individuals.
Documents Required for HSBC Home Loan
1. Duly filled up application form with passport-sized photographs
2. Proof of Identity
- Aadhaar card
- Voter ID card
- Passport
- PAN card
- Driving licence
3. Proof of Age
- PAN card
- Passport
- Driving licence
4. Proof of Address
- Voter ID card
- Property tax bill
- Gas bill
- Passport
- Society outgoing bill for registered societies only
- Electricity/telephone /water bill
- Domicile certificate with address proof
5. Self-employed Individuals
- Bank account statements for the last six months
- Acknowledged Income Tax Returns for the previous two years
- Partnership Deed for partnership firms
- P&L account and balance sheet for the last 2 years audited or certified by CA
- Directors of private limited companies must present a Memorandum or shareholding pattern and Article of Association, attested by CA and a list of directors
6. Salaried Individuals
- Bank statement for the last three months with the last 3 salary credits
- Salary slips of the previous 3 months, showing statutory deductions
7. Self-employed Professionals or Consultants
- Primary bank account statement for the last 6 months
- Acknowledged IT Returns of the previous 2 years
- Profit and Loss account and balance sheet certified or audited by CA with computation of last 2 years’ income
Documents for NRI Home Loan Applicants
1. Self-employed Individuals
- Copy of passport with valid Visa stamp
- Local bureau report of the country where the customer is from
- 6-month overseas account statements and NRE/NRO account statement
- Computation of income along with P&L account and balance sheet certified for previous 3 years, certified by CA/CPA or any other relevant authority
- Trade licence or equivalent document
- Brief profile of applicant or business in a specified format
2. Salaried Individual
- Copy of a valid Indian passport with Visa stamps or copy of a foreign passport with equivalent documents
- Latest contract copy with salary/ salary certificate or wage slips
- Overseas bank account statement for the last three months with all necessary salary credits
- Copy of Visa or equivalent documents as evidence of the NRI status of an applicant
- NRE/NRO account statements for 3 months
- Latest continuous discharge certificate for 3 years as proof of employment
- Primary bank account statement for 3 months
- Present copy of contract. If an applicant is on “home port” for more than 6 months, a future copy of the contract
- Local bureau report of country or region, where an applicant is located. (this is applicable only when the person is situated outside India)
Tips to Avail HSBC Home Loan at Lower Interest Rate
Follow the given tips when applying for a home loan:
1. Improve Your CIBIL Score
If you have a low CIBIL score, the banks are likely to offer you a higher home loan rate than those reserved for applicants with high CIBIL scores. You can gradually improve your CIBIL score by repaying all your loan dues in full on time, minimising your loan applications and a low credit utlisation ratio.
2. Co-apply for a Home Loan
Going for a home loan with a co-applicant can not just enhance your loan eligibility but also help you secure the lowest available interest rates.
3. Opt for a Home Loan Balance Transfer
If your existing home loan interest rates are very high, you can choose to switch the same to a lender offering you a lower applicable rate. In fact, HSBC Bank is currently offering home loan interest rates starting at 8.6% p.a. on balance transfers.
Final Word
HSBC home loan interest rates are some of the most competitive rates in India right now. However, check the loan eligibility requirements and ensure you have adequate income and a high CIBIL score to get the lowest available interest rates. Check the loan fine print for additional terms and conditions. Most importantly, don’t overborrow and ensure you’re able to repay your loan dues in full in time to avoid additional interest charges, a severely hit credit score, and a potential loss of a precious asset – your home, in this case – if you’re unable to repay your EMIs for a long duration.
FAQs
If you already have a savings account with HSBC, you can use it to pay the EMIs towards your HSBC home loan. It is a zero-balance account, wherein you do not need to compulsorily hold a minimum balance. Furthermore, if your initial loan amount is above ₹1,15,00,000, you can enjoy the benefits of HSBC Premier without mandatorily maintaining a zero balance.
The loan repayment process follows the Standard Instruction or Letter of authority which allows debit of EMIs from your linked HSBC savings or current account.
For lower HSBC housing loan interest rates, you can opt for floating interest rates. You can also choose to switch to a floating interest rate if you have already opted for fixed rates. Interest obligations for floating interest rates are comparatively lower than that of fixed rates; however, it depends on market fluctuations. Also, ensure to check the prevailing interest rates when you apply for a home loan.
Your home loan will be disbursed 2 days after your duly signed documents and application details get verified. However, this may take more time if there is any error.
Yes, you can opt for a home loan for an under-construction property with HSBC. However, the bank may disburse the money in small portions. You would need to pay interest on these small parts as pre-EMI until the entire loan amount is disbursed. EMI starts only when the loan is fully disbursed, the construction is completed or after the disbursal of the first portion.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
