Are you someone who needs a lot of liquidity throughout the year? This line of credit facility from HSBC could be an ideal option for you, in that case. The most fascinating feature of this product is that you’ll have to pay interest only for the amount that you have used. This means that no interest will be charged on unused credit. You can also make easy repayments every month. Interest rates could be as low as 12% p.a. We’ll shortly walk you through the special features of this loan product.
Are you struggling currently with insufficient funds? You could end it all with this loan. Here are some of the features and benefits that you could expect:
You could get funds of up to S$100,000 when you apply. Depending on your annual income and nationality, you could borrow up to 6x your monthly income. If you’re a foreigner, however, you may not be able to borrow more than 4x your monthly income. You could borrow up to the credit limit approved.
Interest rates could be as low as 12% p.a. The prevailing interest rate could vary depending on the type of relationship you maintain with the bank.
While some customers may enjoy a perpetual annual fee waiver, there could be others who could enjoy an annual fee waiver for 2 years from the date of approval. It would depend on the nature of relationship you have with HSBC.
The bank will give you a cheque book and a debit card free of charge. This could make access to the line of credit funds easy and quick.The debit card can give you access to instant cash at HSBC ATMs, locally and overseas. You can also access funds at more than 900,000 Cirrus ATMs globally. In addition, you could also withdraw money via Quickcash. This facility is available at any store under the Cold Storage franchise.You could also access funds using the internet banking facility provided to you by the bank.
Paying back the loan is easy. You could use any one of the following fast and secure payment modes for it:
You could check your loan balances, payments, and associated transactions using any of the following modes:
You’ll have the right to inform the bank of your preferred credit limit. However, the bank will retain the right to approve an amount that it considers appropriate. Your request will, however, be taken into consideration at the time of review and processing.
The bank runs promotional offers from time to time. Check their website periodically to discover such deals.
Depending on your banking relationship, you could enjoy the following interest rates on your loan:
|Your Relationship With HSBC||Interest Rate|
|Retail banking||18.5% p.a.|
Whenever the credit line is used, interest will be charged. The interest will be charged on the daily balance outstanding at the end of each day. This will be subject to a minimum charge of S$10 per month.
Let us assume that you have borrowed S$20,000 using the cash advance facility on your credit card. You have been informed by the bank that interest will be charged at 28% p.a. Additionally, a fee of 6%, subject to a minimum of S$15, will be imposed.
Therefore, your interest charges on the borrowing would be S$6,800 (=28/100x20,000+6/100x20,000).
Let’s contrast this to the cost of borrowing with the HSBC Personal Line of Credit. Assuming that you’re a premier customer, the interest rate reserved for you would be 12% p.a. If you borrow an equal amount, your interest costs would be S$2,400 (=12/100x20,000).
How much do you save? S$4,400 or approximately 65% [=(6,800-2,400)/6,800x100)].
[Disclaimer: The numbers used in this example are for illustrative purposes only and may bear no resemblance to reality. Also, the method of calculation was simplified for easy understanding.]
The following are the fees that are most commonly imposed on this loan:
Depending on your banking relationship, you may be charged the following annual fees on your loan:
|Type of Customer||Size of Annual Fee|
|HSBC Premier customers||Waived perpetually|
|HSBC Advance customers||S$60 (waived for the first 2 years)|
|HSBC’s Platinum or Revolution cardholders||S$60 (waived for the first 2 years)|
|Retail customers||S$60 (waived for the first 2 years)|
The following are the other fees that will be charged:
|Type of Fee||Size of Fee|
|Late payment charge||S$75|
|Minimum interest charge||S$10|
|Minimum payment per month||3% of the balance outstanding, subject to a minimum of S$15|
|Failed GIRO payment or other standing instructions||S$30|
|Fee for returned cheques||A maximum of S$50 per instance|
|Past statement retrieval||S$20 (without GST) per copy|
|Default interest rate||3% p.a. above the prevailing rate|
|Interest on balance exceeding the approved credit limit||3% p.a. above the interest rate|
|Early account termination or early settlement of loan||S$40 for an account closed within 6 months of opening. Charges on accounts opened during promotion periods, will be governed by the terms mentioned under the promotion.|
|Replacement of debit card||S$5 per instance|
Learn more about other lenders who don’t charge a processing fee on their loans here.
The following are some of the important things that you should know, understand, and analyse before you make a loan application:
Here are the conditions you must satisfy in order to be eligible:
To learn more about the general eligibility conditions and the documents required for verification, check this page on HSBC Personal Loans.
Think you’re ready to apply? Here’s how you could proceed:
Given an option, would you prefer planning a surprise vacation for your family or worrying about money? If you don’t have the money for a big-ticket investment but think that it’s unavoidable, you could consider this loan. However, if you want to check out more options, click here.