In a move that would greatly benefit those planning to switch lenders to bring down the overall cost of their housing loans during festive season 2021, private lender HSBC India has reduced its home loan interest for balance transfer to 6.45%.
This is the lowest interest rate at which any bank in India is offering balance transfer, at present. Before HSBC India announced the reduction, Kotak Mahindra was offering the lowest rate of interest of 6.50% on home loan balance transfers.
“Given our focus on further building the retail book, home loan is a segment we are looking at expanding and envisage growing the book size by 2X over the next three months,” Prashant Kumar, chief executive and managing director, HSBC India, said.
The current rate, which is a part of the bank’s festive offer and comes into effect from October 1, 2021, on home loan balance transfer to HSBC India, is the result of a 10 basis-point reduction in home loan interest rates. (A hundred basis points makes up for one percentage point.)
HSBC India has also waived off the processing fee for these loans, the bank said in a statement. Available across all loan amounts, this festive offer will be effective till December 3, 2021.
On fresh home loans, the bank, which offers housing loans in the Rs 3 lakhs to Rs 30 crores range, will charge 6.7% annual interest. Self-employed borrowers will, however, have to pay 6.80% annual interest on home loans. The rate by HSBC India is the same which lenders like SBI, HDFC, ICICI Bank, etc., are charging on their home loans.
“We believe this reduction in the home loan rates will help reduce the interest burden of customers and make home ownership more affordable,” Raghujit Narula, head of wealth, personal banking, HSBC India, said.
HSBC India, which typically charges 1% of the loan amount as the processing fee, offers housing loans for tenures up to 25 years.
HSBC India home loan eligibility
To qualify for a home loan at HSBC India, the borrower must meet the following criteria:
Minimum net income: Rs 5 lakhs per annum for salaried individuals and Rs 7.50 lakhs for self-employed borrowers.
Minimum age: 21 years
Maximum age on maturity of loans: 58 for salaried; 60 for public limited/government employees; 65 for self-employed.
Minimum loan amount: Rs 3 lakhs.
Maximum loan amount: Rs 3 crores
Maximum tenure: 25 years for salaried people; 20 for self-employed.