Resident Indians are entitled to certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961.

Home loan borrowers can opt for fixed or floating rate home loans. Repayment options are customer-friendly and flexible. HSBC’s Smart Home is a savings-linked home loan product that allows the customer to save up to 50 percent on interest expenses of the loan. It has launched a home loan product with flexible equated monthly instalment (EMI) payments. MyHome is a unique home loan product that lets the borrower pay an EMI that is either 15% higher or lower than the regular EMI depending on his cash flow.

Eligibility criteria for Resident Indians:

• Applicant should not be less than 21 years of age.
• Maximum age for loan eligibility is 58 years for Salaried, 60years for Public Limited/Government Employees and 65 years for Self employed Professionals.
• Repayment capacity takes into account, income where net income should be 1.5 lacs p.a.
• Repayment options depend on the stability and continuity of occupation and savings history.

Eligibility criteria for NRIs:

• NRI Applicants must have a local co-applicant or a local Power of Attorney holder.
• All joint owners of the property would necessarily have to be co-applicants and would need to sign all loan documents.
• Minimum age for loan application is 21 years.

• Repayment capacity is evaluated on factors such as income, qualifications, stability and continuity of occupation and savings history.

 Rate of Interest:

• The interest rate on floating rate loans is linked to HSBC's Retail Lending Rate (RLR). Any revision in the RLR would impact the interest rate.
• The interest rate of ‘My Home’ is at par with `Smart Home', which has a floating interest rate of 8.5-8.75 per cent.
• There is an option of switching from a floating rate home loan to a fixed rate home loan once a year and vice-versa.
• Switching from Fixed Rate to Floating Rate (allowed only after completion of fixed term) costs 1.5% of the outstanding loan amount.
• Switching from Floating Rate to Fixed Rate- at the time of annual review   of account involves no extra cost. Any other time during the year 1.5% of the outstanding loan amount is charged.

Loan amount:
HSBC home loans range from Rs. 5 lakhs to Rs. 3 crore.

Repayment:
The maximum repayment period can go up to 25 years.

Processing Fee:
Processing Charges are to the tune of 1% of the loan amount applied for, subject to a minimum of Rs 5000 plus service tax. This fee is payable on application and is not refundable.

For more information visit: http://www.hsbc.co.in