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 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|
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).
Rate of Interest (P.a)
Loan Tenure (Years)
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.
Here are some of the essential factors that affect the home loan interest rate of HSBC Bank:
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.
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.
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.
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.
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.
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|
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|
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|
The following table lists the home loan interest rates of different Indian banks:
|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%|
Take a look at the best features and benefits of HSBC home loans:
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.
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.
Home loan interest rates for HSBC range from 8.75%-8.85%, which are quite competitive.
You can pre-pay your EMI any time before the due date without any prepayment charge for floating-rate home loans.
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.
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.
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:
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.
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.
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:
Follow the given steps to apply:
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.
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.
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.
You will receive an OTP on your registered mobile number. Enter the same in the required field for verification.
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.
Follow the given tips when applying for a home loan:
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.
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.
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.
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.
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.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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