HSBC Loan Against Property

The time taken for the processing of the loan application will be 5 days on submitting the complete set of documents required. It takes 5 days for the legal scrutiny of the documents and the valuation of the property. The time taken for legal scrutiny varies from state to state. The loan processing (i.e., the post-approval process) will take a minimum of 4 days of submitting all the required documents. The loan disbursal will be done within 2 days from the date of submitting the completed and duly stamped agreement and other necessary documents. The overall time taken for the credit approval will be around 16 days.

The repayment can be by way of debit to NRE/NRO account, liquidation of FCNR deposit, by debit to the bank account of a close relative. It can also be through foreign inward remittance.

The following charges are collected for HSBC Loan Against Property:

Processing charges: Processing charges will be collected at 1% of the loan amount with a minimum of 10000/-. 5000/- should be paid at the time of submitting the application and the balance before the disbursal of the loan.

Conversion charges: The conversion from MCLR/Base Rate/Retail Lending Rate to RLLR can be done with a one-time conversion fee of 5000/- plus the applicable tax.

Commitment fee: This is applicable only for Smart Loan Against Property where an overdraft facility is provided. The fee is collected at 1% on the amount above 25% of Smart Loan Against Property with a commitment fee sanctioned amount.  If the excess amount in the Smart Loan Against Property account is above 25% of the Smart Loan Against Property with commitment fee sanctioned amount, the sanctioning authority has the discretion to collect a commitment fee at 1% on the balance amount over and above the threshold limit.

Pre-payment charges: No prepayment charges will be collected for a loan availed at a floating rate of interest. If a conversion is opted from a fixed-rate to a floating rate, pre-payment charges will be applicable only for the fixed-rate period and there will be no charges for pre-payment done during the floating rate tenure. The pre-payment is permitted only after 6 months from the date of the first disbursement of the loan.

For a loan at a fixed rate of interest, no pre-payment charges will be collected if the pre-payment made is below 25% of the outstanding balance in the account. Such pre-payments are allowed only once in a financial year.  If the pre-payment made is above 25% of the outstanding balance in the account or done more than once in a year, a pre-payment charge at 4% of the pre-paid amount will be collected.

For making pre-payments to the HSBC Loan Against Property account, a written request for making the pre-payment with an instruction to either reduce the EMI or reduce the tenure has to be given. If no instructions are given, the bank will as per the practice reduce the tenure of the loan according to the pre-payment amount received. If credit in excess is received to the Smart Loan Against Property account without any instruction, the excess amount will impact on the outstanding balance in the Smart Loan Against Property account. Any excess amount received to the Smart Loan Against Property account will be adjusted to the principal amount only.

The special benefits to customers who avail of HSBC Loan Against Property are:

• The repayment to the loan account can be by way of auto-debit to the Savings Bank Account at the bank. Such Savings Bank Account will be opened without a minimum balance stipulation during the loan tenure.
• Unlimited free access to HSBC ATMs across the country along with 5 free transactions in other bank ATMs.
• Purchase limit of 40000/- at Merchant Establishments and withdrawal facility up to 25000/- at HSBC ATMs.
• Free access to Phone and Internet banking services.

If the loan amount is above 30.00 lakhs the benefits of HSBC Advance will be provided without having to maintain a minimum balance in the account till the maturity of the loan.

The benefits of HSBC Advance are:

• Withdrawal limits of 1.00 lakh per day along with unlimited access to Visa ATM in the country for HSBC Advance Platinum Debit Card.
• Dedicated round the clock service and all through the week Phone Banking facility.
• Will be assisted for opening HSBC Accounts, overseas HSBC Accounts and also will have access to emergency encashment in select countries.

HSBC mortgage rate starts from 9.75% per annum at present.

The current interest rate for loan against property at HSBC Bank starts at 9.75% p.a.