If you don’t want a long-term financial solution, how about some short-term fixes? Were you planning to renovate your home or shop for the upcoming festival? This term loan from HSBC may be able cover for these expenses – small and big. Enjoy a hassle-free application process and competitive interest rates with this HSBC loan.
|Loan Tenure||Applied Rate (Flat)||Effective Rate of Interest (EIR)||Processing Fee|
|12 months||0% p.a.||11.23% p.a.||5.88%|
|18 months||0% p.a.||10.45% p.a.||7.88%|
|24 months||6.28% p.a.||12.64% p.a.||1%|
|36 months||6.88% p.a.||13.32% p.a.||1%|
[Please note: EIR, in this case, takes into consideration the fact that the processing fee will be charged upfront. Also the computation of EIR is based on the assumption that the monthly instalment is settled in full every month until the end of the loan tenure. Failure to clear your dues on time may attract higher rates.]
Currently, since no interest applies on your loan for 1 year if you pay the instalments on time, your monthly charges for a loan amount of S$10,000 for a tenure of 1 year, would be close to S$833 (=10,000/12+0/100x9,412/12). In addition, you’ll be charged a processing fee of S$588. Keeping the loan amount same, if your tenure were to change to 18 months, your monthly instalment amount would be S$555.56 (=10,000/18+0/100x9,212/12) and you’ll also have to pay a processing fee of S$788.
If now, for example, you want to choose the 2-year loan tenure, how much would be your monthly instalment and processing fee be? Your processing fee would be 1% of the loan amount, which is S$10,000. So, your processing fee is S$100 (=1/100 x 10,000). Now, since this fee will be charged upfront, the flat rate of interest will only apply on the loan amount minus the processing fee. Therefore, the applied rate of 6.28% p.a. will apply on S$9,900. Your monthly instalment amount for a 2-year period would be around S$468 (=10,000/24 + 6.28/100x9,900/12). Had you chosen a 3-year loan tenure, you would have paid an instalment amount of approximately S$335 (=10,000/36 + 6.88/100x9,900/12) per month as the processing fee remains the same as the 2-year loan period.
|Cancellation fee (on termination of programme or card account)||S$100|
|Instalment period restructuring||S$100|
|Early repayment fee||S$100|
|Cash advance rate (applicable if monthly instalment is not paid on time)||28% p.a.|
Hasty decisions can almost always ruin your plans. So, take some time to mull over the following points before you click the “apply” button:
You may be able to apply for this loan only if you’re a principal holder of an HSBC card. If you want to know whether you meet the card eligibility requirements, click here. To learn more about the general eligibility conditions for HSBC personal loans, click here. Don’t forget to check the list of supporting documents on both the pages.
The following are the modes of application that the bank provides to loan applicants:
If you want answers to your general queries or an update on the status of your application, you may call the bank’s hotline. The bank’s customer service officers will assist you.
Q. Will I receive Rewards points for instalment payments that I charge to my HSBC card?
A. No. The bank won’t offer rewards points for instalment payments, interest charges, fees, or any other related charges.
Q. The bank approved only a percentage of the loan amount that I had applied for. Why?
A. The bank uses its discretionary powers and determinants that it may not reveal publicly, to evaluate your application. Hence, the loan amount approved may be different from what you had applied for.
Q. I don’t have an HSBC credit card. Can I apply for this loan?
A. You can apply for this loan only if you’re the principal owner of an HSBC card. Hence, if you don’t have a card already, you’ll have to get one first before you can apply for this instalment loan.
Q. I own an HSBC corporate card. Can I apply for this loan?
A. No. Holders of HSBC corporate cards may not be eligible for the programme.
Q. Is there a fixed date on which the bank will charge the instalment amount to my card?
A. The instalment amount, will be charged to your account every month, on the relevant statement date.