HSBC NRI Home Loan

With HSBC's Non-Resident Indian (NRI) Home Loan, you have the opportunity to make your dreams come true - whether it is investing, owning a dream house for your family, or having your summer getaway. HSBC Bank provides a variety of home loan options with highly appealing interest rates. These rates are connected to the bank's Repo Linked Lending Rate (RLLR), ensuring flexibility and affordability. The HSBC NRI home loan serves as a lifeline, connecting you to your homeland and ensuring a stable financial future. Its streamlined application and paperwork make it a standout option in the crowded world of financial services. Continue reading to get all the details about the HSBC NRI Home Loan.

Feature & Benefits of HSBC NRI Home Loan

The purpose of the features and benefits is to improve the overall experience for NRIs who are interested in acquiring home financing loans from HSBC Bank. The table below illustrates the various features and benefits offered by HSBC for NRI home loans.

Types of HSBC Home Loans for NRIs 

HSBC provides a range of home loan options for non-resident Indian (NRI) customers:

• NRI Loan Against Property (LAP)
• Smart Home Loan
• Smart Loan Against Property

Purpose of HSBC NRI Home Loan

HSBC offers NRI home loans that can be utilised for a diverse range of housing needs:

• Financing the purchase of a new or existing residential property.
• Funding the construction of a house on a plot of land owned by the borrower.
• Providing funds for buying a plot of land intended for residential construction.
• Financing the renovation, repair, or extension of an existing residential property.

HSBC NRI Home Loan Interest Rates

The NRI home loan interest rate provided by HSBC starts at 8.45% p.a. The bank offers varying interest rates for different borrowers, depending on several factors. These factors surround the borrower’s choice between a fixed or floating interest rate, as well as their creditworthiness, loan tenure, and loan amount. To secure the most favourable interest rates, it is recommended to maintain a high credit score when applying for a loan.

HSBC NRI Home Loan Documents Required

An NRI borrower must produce the following documents while submitting a home loan application with HSBC:

• Complete Application Form
• One Passport Size Photograph
• To prove one’s identity and visa status, a copy of a valid Indian passport with visa stamps or a copy of a foreign passport or equivalent documents are required
• Proof of Identity (Passport/ Voter’s ID/ Permanent driving license/ PAN Card/ Aadhar Card)
• Proof of Address (Passport/ Election/Voter’s ID/ Permanent driving license/ Society outgoing bill (only from registered societies)/ Electricity/water/telephone bill/ Gas bill/ Property tax bill
• Domicile certificate with address issued by Municipal Corporation
• Proof of age (Passport/ Driving License/ PAN Card)
• Specific Power of Attorney (POA) in HSBC standard format 

*Other documents as per bank’s requirements*

HSBC NRI Home Loan Eligibility Criteria

To be eligible, NRI applicants need to have either a local co-applicant or a local point of contact.

US citizens are also eligible for a Non-Resident Indian (NRI) Home Loan or a NRI Loan Against Property (LAP) as long as they repay the loan using income earned in India. The repayment must be made through a Non-Resident Ordinary (NRO) account. For additional information, please consult your Relationship Manager.

Residents of the United Kingdom can also take advantage of HSBC NRI Home Loans and NRI Loan Against Property in India, as long as they adhere to the regulations of the UK. For more information, please contact your Relationship Manager.

To be eligible for a NRI Home Loan/LAP from HSBC, you must meet the following requirements:

• Minimum Net Income Required for Salaried Individuals: INR 500,000 p.a.
• Minimum age: 21 years
• Maximum age: 58 (salaried), or 60 (public limited/government employees)
• Minimum loan amount: INR 300,000 (for NRI Home Loans)
• Maximum loan amount: INR 400,000,000 (for NRI LAP)
• Maximum loan tenure: 25 years

Fees & Charges for HSBC NRI Home Loan

The Processing Fee, which is either 1% of the loan amount or ₹10,000 (whichever is greater), will be charged (including relevant taxes*). This fee is divided into two parts: ₹5,000 + applicable taxes* must be paid upfront with the loan application, while the remaining Processing Fee amount + applicable taxes* must be paid before the loan is disbursed. The Processing Fee is non-refundable.

As of January 1, 2024, the Bank will no longer impose penalty interest. However, it retains the authority to assess appropriate Penal Charges for borrowers who fail to comply with the loan agreement’s crucial terms and conditions. Prior notification will be given before implementing any changes to fees.

Tax Benefits of HSBC NRI Home Loans

NRIs who take advantage of home loans, such as those provided by HSBC, have the opportunity to receive various tax advantages according to Indian Income Tax regulations. These advantages mirror those accessible to Indian residents but with certain stipulations specific to NRIs. Here are the primary tax benefits:

• Deduction on Interest Paid
• Deduction on Principal Repayment
• Deduction on Stamp Duty and Registration Charges
• Additional Deduction on Interest for First-Time Home Buyers
• No Tax Deducted at Source (TDS) on Property Sale
• Long-Term Capital Gains Benefits