HSBC lets you have greater control over your finances through their instalment plan. With this plan, you can convert your high-priced purchases into affordable and flexible instalments.
You must charge at least S$500 to your HSBC credit card for purchases at any of the participating merchant outlets. Once you sign the charge slip at the outlet, the bank will pay the entire amount to the merchant on your behalf. You will, then, pay the total amount to the bank in instalments every month.
Suppose you have made a purchase of S$1,200 at any of the designated merchant outlets and want to pay this amount over 6 months. The instalment amount you are required to pay each month is S$200 (S$1,200/6). However, this will not be the final amount you need to pay the bank. There will be an EIR applicable. Please talk to an HSBC executive to find out about the actual numbers.
The instalment amount that needs to be paid every month will reflect on your credit card statement. Once the charge slip is processed by the bank, your approved credit limit will be reduced by the amount equal to the purchase price. The credit limit will be restored once you start paying the instalments. But, if you have requested for a temporary increase in your credit limit, you cannot use this instalment plan.
In case the purchase price cannot be divided into equal monthly instalments, then you have to pay the difference amount together with your last instalment. Moreover, if you fail to pay the monthly instalments on time, then the bank will add an interest rate and late payment fee to your next bill.
Retail interest rates will apply if you do not pay the instalments on time. For further details, please get in touch with the bank.
In the event of early termination or cancellation of the plan for any reason, you have to pay an administrative fee of S$100. In addition, you have to settle the full purchase price.
To access HSBC’s Card Instalment Plan, simply ask your merchant. They will give you a charge slip, which has to be signed and given back to the merchant. The bank will pay the entire amount for you. You have to repay the entire amount to the bank in instalments every month.