Overview of HSBC Bank
One of the oldest banks in the finance and banking world, the Hong Kong and Shanghai Banking Corporation has survived through numerous historic landmarks including both the world wards, The Great Depression and the Cold War. The bank that was established in the year 1865 has exponentially expanded ever since its inception. It set foot on the Singapore soil in the year 1877 and had become one of the earliest banks to make its presence on the island. It assumed its present name in the year 1989 and has since become a founding member and leading subsidiary of HSBC Holdings PLC. In the present scenario, HSBC Group is an integral cog in Singapore’s financial sector for providing financial solutions and business products to individuals, corporations, local businesses and many more. Some of the popular products include Cards, Insurance, Loans such as Personal Loans, Home Loans etc. to name a few. HSBC is prevalent in 72 countries and territories all across the world with over 48 million customers.
HSBC Bank Personal Loan Eligibility
To be eligible for a HSBC Personal Loan, an applicant must fulfill the following criteria –
- The following persons are eligible to apply for the HSBC Personal Loan – Singapore Citizens, Singapore Permanent Residents or PRs and Foreigners.
- Foreigners must possess an employment pass with at least one year of validity to qualify for a HSBC Personal Loan.
- The minimum age requirement to qualify for the HSBC Personal Loan is 21 years of age and the maximum age requirement is 65 years of age.
- The following minimum income criteria are applicable for applicants applying for the HSBC Personal Loan –
- Salaried Singapore Citizens or Singapore Residents (PRs) must earn a minimum of SGD 30,000 per annum to be eligible to apply for the HSBC Personal Loan.
- Self –employed and Commission based Singapore Citizens or Singapore Residents (PRs) must earn a minimum of SGD 40, 000 per annum to be eligible to apply for the HSBC Personal Loan.
- Foreigners carrying an employment pass with at least one year of validity must earn a minimum of SGD 40,000 per annum to be eligible to apply for the HSBC Personal Loan.
Factors Affecting HSBC Bank Personal Loan Eligibility
- Nationality - There are many banks and other financial institutions in Singapore that only provide loans and other banking products and services to Singapore Citizens and Singapore Permanent Residents. However, HSBC goes above and beyond by providing the HSBC Personal Loan even to foreigners provided the other eligibility criteria have been met.
- Income - The income that an applicant earns plays an integral part of the application process. It reflects the earning and repaying potential of an individual. An income also reflects the stability and consistency of the influx of money. However, stability of income is also defined by various other factors including nationality of the applicant as the expenses of Singaporean citizens will significantly vary from foreigners in Singapore for instance. Hence, many banks including HSBC have different income requirements for Singapore citizens, Singapore Permanent Residents, self-employed, commission based employees and foreigners. Salaried Singapore Citizens or Singapore Residents (PRs) must earn an annual income of SGD 30, 000. Self –employed, Commission based Singapore Citizens or Singapore Residents (PRs) and foreigners must earn a minimum annual income of SGD 40,000.
- Age - Age is one of the important factors that can determine whether you are eligible to apply for any financial product or service. Most banks and financial institutions have age as criterion to determine whether an applicant qualifies for a product or service they have applied for. HSBC Personal Loans are offered to vast age limit that starts from 21 years and up to 65 years of age. Therefore, this loan can be offered to an applicant who has just started a career and is looking to make it on their own or to an applicant who has finally decided to make some huge life decisions before retirement and needs some extra cash.
- Credit Score - When you read the website, or a brochure of any bank or financial institution, it may mention much or even anything about your credit score as an eligibility criterion when you apply for a banking product or service but it goes without saying that your Credit Score plays a huge role in determining if the bank wants to do business with you or not. Your Credit Score is based on factors that include your ability to make timely payments, your debt to income ratio, the line of credits you have open and so on. It is a grade reflecting your current financial status. Any lender is concerned with your financial history when it comes to lending you any money.
- Employer - If you are salaried employee, your employer’s reputation also contributes as a factor to decide if you are eligible for a personal loan. This is because your professional life is dependent on the hands of your employer. Extensive background checks will not only be conducted on you but also your employer. The documents that you furnish as part of the application requirements do not only define your financial status but also your employer’s status, for example HSBC requires a submission of your CPF Contribution History, a contribution that is not only made from part of your salary but a part that is also paid by your employer.
- Employment - Your employment status is a matter of concern when deciding what your eligibility for a loan is by most banks and financial institutions. For instance, the requirements for a salaried employee is different from that of a self-employed or a commissioned based employee. The employment factor in turn determines other eligibility factors. For instance, for the HSBC Personal Loan, depending on your employment status, your minimum annual income requirement will vary. Your employment status also entitles you to submit different or in some cases additional documents to prove the same.
How to increase your loan eligibility criteria?
In order to strengthen your loan application, you need to identify your weakness and works towards building a better application to not only be eligible for the loan but also get the loan at the best possible interest rates. For instance, if you think you are up for a raise anytime soon and it will make a significant change in your income output, then wait it out till your income increase and then apply for the personal loan because you are likely to get a better offer with a higher annual income, do not be satisfied with just scraping through the eligibility criteria, go beyond that. If your credit score is a problem with your application, then work towards improving it by paying all your bills on time and by decreasing your debt to income ratio. Do not just pay the minimum amount due on your credit card(s) but pay off your outstanding bills and other lines of credit. This will most definitely help improving your credit score and that in turn will make you eligible for a personal loan with HSBC at a much attractive interest rate. In this manner, it is always advisable to come up with a strategy to analyze where you are lagging and improve on those areas before you apply for a personal loan.
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Frequently Asked Questions
- Is there a minimum age criterion to apply for the HSBC Personal Loan?
Yes. You need to be at least 21 years of age or above in order to be eligible to apply for a HSBC Personal Loan.
- Does the HSBC Personal Loan require me to put down a collateral to be eligible for this loan?
No. You do not have to put down any collateral to be eligible to apply for the HSBC Personal Loan.
- I am a foreigner. Can I also apply for the HSBC Personal Loan?
Yes. However as foreigner, you need to have an employment that has a validity of at least 1 year and your minimum income must be at least SGD 40, 000 per annum.
- I work on a commission basis. What is my minimum income requirement in order to be eligible for the HSBC Personal Loan?
As a commission based employee, you need to have a minimum income of at least SGD 40,000 per annum to be eligible for the HSBC Personal Loan. This is applicable to both, Singapore Citizens as well as Singapore Permanent Residents.
- What is the minimum annual income requirement for salaried employees to be eligible to apply for the HSBC Personal Loan?
A salaried employee must have a minimum annual income of at least SGD 30,000 to be eligible to apply for the HSBC Personal Loan. This is applicable to both, Singapore Citizens as well as Singapore Permanent Residents.
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