HSBC is one of the top three-four players in every segment of the housing finance market. The bank entered this segment in March 1999. Infact, it won the "Best Customer Relationship Bank" award from the Maharashtra Chamber of Housing Industry (MCHI) at the Property 2001 housing fair. The focus on home finance is part of the global gameplan of HSBC to focus on personal banking throughout the world. HSBC officials attribute its success in the home finance front to its focus on the customer. As HSBC's senior manager, personal banking and cards, India area management office, Richard Cromwell puts it :"There are no hidden costs and surprises in our packages. What you see is what you get. Our policy is that the customer drives the bank and decides what what scheme he wants to opt for, whether it is refinance or the fixed interest rate scheme or the floating interest rate scheme. The customer is in charge of his own financial destiny."

A major factor that works in HSBC's favour is that the interest is charged on the monthly reducing balance and not on the yearly reducing balance which other institutions do. This enables HSBC customers to pay half a per cent less in interest charges. Mr. Cromwell adds :"Thus, we put our money where our mouth is and pass on the benefit to the customer." HSBC's manager-retail assets, India area management office, Balaji Iyengar said that HSBC has pioneered the concept of refinance which was well received by the market. He added that flexibility of the HSBC home finance schemes enable the bank to attract more and more customers and it is part of the entire suite of personal finance products that HSBC offers.

HSBC recently lowered its coupon on the floating rate scheme from 13.6 per cent to 13 per cent in the eight to fifteen years segment. Its interest rate in the floating rate scheme is 14.1 per cent in the eight to fifteen years segment. In the fixed rate scheme, a customer could opt for a one or a two or a three year fixed rate scheme or change it after a year or two at his choice.