HSBC’s Smart LAP to bring down interest payment

News Posted - 2010-02-22

HSBC is now offering its customers the freedom of raising finance against their self-occupied residential properties, along with the flexibility of paying interest only on the net outstanding loan principal.

Borrowers can effectively manage their finances through Smart Loan Against Property (Smart LAP) product that enables them to reduce interest payments on their loan and offers a speedy way to repay their mortgage. The excess amount that the customer maintains in the Smart LAP account is adjusted against the principal loan amount, thereby leading to a reduction in the interest paid (for the period the excess amount is maintained).

Commenting on the launch, Rajnish Bahl, head (personal financial services) of HSBC India, said, "HSBC has always been a pioneer in providing innovative, customer-friendly products and services. SmartLAP is the Loan Against Property version of our innovative home loan product SmartHome. In SmartLAP, the more a customer saves, lesser is the interest payment on the loan."

SmartLAP is available to all resident Indians as well as NRI customers. Customers can save up to 50% of interest payments by maintaining an excess amount over and above the EMI. Customers also get the benefit of HSBC Debit Card, financial planning services and a host of other banking benefits.

Source: Financial Express 15/2/10