HSBC launches mortgage loan product 'Smart LAP'

MUMBAI: Foreign lender, HSBC today launched a mortgage loan product that offers loan facility to customers against their self-occupied residential properties at a lower rate.

Borrowers can manage their finances through the scheme--smart loan against property (Smart LAP)--by reducing their interest payments by maintaining an excess amount in a current account every month.

The excess amount that the customer maintains in the account is adjusted against the principal loan amount, thereby leading to a reduction in the interest paid, a press release said.

"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," HSBC India, Personal Financial Services Head, Rajnish Bahl said.

Using the scheme, customers can save upto 50 per cent of their interest payments by maintaining an excess amount over and above the EMI, it said.

SmartLAP is available to all resident Indians as well as NRI customers. Customers also get the benefit of HSBC Debit Card, financial planning services and a host of other banking benefits under the product, it said.