HSBC Granted Land Loan For UAE Nationals

Granted Land refers to the property that has been gifted to the UAE nationals by the Prime Minister and Vice President of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum. This land is offered at no cost and can be used for commercial or residential purposes. Till 1994, any mortgage on these lands was prohibited.

It was in 1996, that this restriction was lifted. It implied that the granted land, be it commercial or residential could be legally mortgaged. HSBC Bank Middle East offers a mortgage loan on granted lands for UAE nationals only. This article lists all the particulars of HSBC Granted Land Loan for UAE nationals, eligibility criteria, minimum salary requirement, and how you can apply for this loan.

HSBC Granted Land Loan for UAE Nationals: An Overview

The 1996 decree of mortgaging the granted land has brought a surge in UAE’s real estate market. The granted landowners can now take a home loan to fund their projects while the banks get the legal rights to sell the granted land in public auctions, in case there is a default. 

HSBC is a reputed name in the banking sector of the UAE. It offers a plethora of services including HSBC Granted Land Loans for UAE nationals at reasonable interest rates. The mortgage loan requires you to have a minimum salary of AED 20,000 with a repayment tenure of up to 25 years. 

Features and Benefits of HSBC Granted Land Loan for UAE Nationals

Here’s a list of all the features and benefits of Granted Land Loan for UAE Nationals in the UAE:

• Reasonable Interest Rate: You can apply for a home loan with the bank at competitive interest rates. The flat interest rate is 4.41% while reducing interest rate is 8.0%.
• Easy Approval in Principle: HSBC UAE is known to offer swift and efficient approval. This is a standing approval that you can avail of even before you apply for the loan. It maximizes the chances of the loan getting approved. 
• Additional benefits: When applying for an HSBC Granted Land Loan for UAE nationals, you can also avail of the following perks:

1. Total arrangement fee waiver
2. In every calendar year, you can pay about 25% of the remaining balance, free of any additional charge.
3. You can avail of a 10% discount if you purchase home insurance when applying for a home loan. 

Eligibility Criteria for HSBC Mortgage Loan

The following are the eligibility criteria to apply for a home loan in the UAE:

• Age: Between 21 and 25 years (65 years for salaried and 70 years for self-employed or UAE national)
• Minimum income: AED 20,000
• You need to be either a salaried employee or a self-employed person to apply for this loan. 

Documents Requirements for HSBC Granted Land Loan for UAE Nationals

• Emirates ID, resident visa, and passport
• Bank statement for last six months
• Salary slip
• Validation that you are capable to make the down payment.
• Documents of property ownership

How to Apply for an HSBC Granted Land Loan for UAE Nationals in UAE?

Once you have submitted the documents along with the application form, the bank will:

• Arrange for the valuation of your estate.
• Notify you if the application has been approved, once the valuation is completed.
• Provide you with a home loan offer in the next seven banking days.

Key Takeaways

Granted Land implies the land gifted to the UAE nationals by the Prime Minister and Vice President of the UAE. Till 1994, this land could not be mortgaged. It was in 1996 that the restrictions were removed on these lands. HSBC Bank Middle East offers Granted Land Loans for UAE nationals. To apply for this mortgage loan in the UAE, you need to have a minimum salary of AED 20,000 and an age between 21 years and 65 years. 

During the application process, first, opt to apply for Approval in Principle. This will increase the possibility of your loan application getting approved quickly. When applying for HSBC Home Loan in UAE, make sure you carry the required documents including Emirates ID, passport, salary certificate, bank statement for the last six months, and more. 

Once you submit these documents, the bank will evaluate your estate and notify you if the home loan application is approved. If the valuation is as per the requirement, you will get a home loan proposal in the next seven working days.