Purchasing a home or a new plot is a huge investment, given the fact that the costs of properties have increased greatly in recent years. And we understand your dreams of owning a place that you could call your home. Thus, HSBC bank–one of the world’s leading private lenders now provides home loans in India at competitive rates of interest. The HSBC home loan offers financial assistance from 3 lakh to 10 crore rupees.
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The various reasons why you should apply for an HSBC home loan are here as follows:
- You can avail repayment tenure up to 20 years (if you are self-employed) and 25 years (if you are employed).
- HSBC home loan rates are generally offered at a floating rate of interest. Further, on certain occasions, individuals can also apply for a fixed rate of interest; however, for that, you would have to coordinate with the relationship desk of the respective bank.
- Home loans from HSBC bank are available for both resident Indians as well as NRIs (non-resident Indians); however, the NRIs need to have a local person of contact.
- HSBC bank even offers the facility of adding your spouse as co-borrower and make his or her income add-up to your eligibility. This helps you increase your eligibility for an HSBC home loan.
HSBC home loan is mainly of two types-
HSBC housing loan:
- You can make use of this type of HSBC home loan to either purchase a new plot/property or to construct a new one. You can avail any amount of loan as long as it is within the set limit by the financial institution.
- Other than that, you can even make use of the loan amount to buy a constructed property, property under construction, build your own house, and also for renovation or refurbishing your existing property.
- You get the option to make flexible repayments in the form of EMIs (equated monthly installments), or through PDCs (Post-dated cheques). However, you can also make repayments for the same through ECS (Electronic Clearing Systems) or SI (Standing Instructions) to any financial institution and asking them to debit the capital amount from the HSBC savings account.
HSBC smart home:
- This home loan will act as a current account and will allow the borrower to save money on the interest payments; thus, reducing the overall tenure of the loan amount. Your HSBC smart home account will have an overdraft limit which will be the same as the amount of loan disbursed.
- You can make use of an HSBC smart home to purchase a new property or the one under construction; however, the loan amount for the property under construction will be disbursed in tranches and the rate of interest will only be charged on the disbursed amount.
- HSBC bank also allows you to make pre-equated monthly installments for the amount of money that aren’t fully disbursed; and after the complete disbursement of the loan amount, you can start making EMIs (equated monthly installments).
HSBC home loan rates offered for salaried applicants in the case of normal home loans are around 8.65% p.a. and for self-employed individuals, the same is offered at 8.75% p.a. However, when applying for a smart home loan- the interest rates for self-employed individuals are at 8.90% p.a. and 8.80% p.a. for salaried applicants. Further, remember that all of these interest rates are floating, and for fixed rates, you would have to visit your nearest HSBC bank.
But ensure that you meet the HSBC home loan eligibility criteria to obtain the home loan amount. These eligibility criteria are here as follows:
- Age limit: The minimum age limit set for obtaining an HSBC housing loan is 21 years, and the maximum age limit on the maturity of loans is 65 for self-employed, 60 years for government employees, and 58 years for salaried individuals.
- Income: The minimum source of income for the salaried applicants has to be 5 lakh p.a. and 7.5 lakh p.a. for self-employed individuals.
- Credit report: The financial institutions also check the applicant’s credit score and history to determine the loan worthiness.
The different set of HSBC home loan documents that you may require are here as follows:
- Your HSBC home loan application form with your passport sized photograph.
- Identity documents such as passport, driving license, Aadhaar card, etc.
- You also need to submit proof of address in the form of your driving license, passport, property tax receipt, etc.
- Your proof of age can be your passport, PAN card, etc.
- Salary documents for self-employed individuals are your IT returns of the last 2 years, past 6 months bank statements, etc. And for salaried individuals, you will have to produce your latest salary slips of the past 3 months, along with your past 3 month’s bank statements.