HSBC Personal Loan
HSBC Offers the Lowest Interest Rates in the Market
A personal loan from HSBC can help you enjoy life without having to bear an unmanageable interest burden for the rest of your life. Whether you’re comfortable with a term loan, a line of credit, or a debt consolidation plan (DCP), you may find an option that’s suited perfectly to your needs.
Compare Personal Loans from HSBC
- HSBC’s Cash Instalment Plan: Do you have an HSBC card? You can borrow up to 90% of the credit limit available on your card through this loan. Repayments can be spread over 1 year and can go up to 3 years. An applied interest rate as low as 0% p.a. and a one-time processing fee as low as 1% will apply. Thanks to fixed monthly instalments, you may be able to enjoy better control over your finances.
- HSBC Personal Loan: Need to make a big-ticket purchase or investment? You can rely on this loan because you may be able to borrow up to 8x your monthly income through this loan product. Monthly instalment payments are fixed which means that your cash flow will be regular and probably easier to manage. Flat interest rates start from 3.7% p.a. and can go up to 4.8% p.a. The repayment period can be from 1 year to 7 years.
- HSBC Personal Line of Credit: A personal credit can be a great tool to manage your unforeseen and unbudgeted financial commitments. With access to a credit facility from which you can draw cash multiple times, you’ll have the much-needed financial stability that you have always wanted. The credit limit can go up to 6 times your monthly earnings. Interest rates can be as low as 12% p.a.
- Balance Transfer: If you want to consolidate unpaid balances from multiple credit cards into one card, you may consider this loan as an option. The tenures available are 6 months and 1 year. Interest rates can be as low as 0% p.a. A one-time processing fee may or may not apply depending on the tenure that you choose.
- Debt Consolidation Plan: Have you accumulated a mountain of debt? You may still have one option left to escape bankruptcy. This loan product offers interest rates as low as 4% p.a. and allows you to consolidate the unsettled balances from your existing unsecured credit facilities under a single loan account. You’ll enjoy the convenience of making fixed payments every month to this account and deal with only one financial institution instead of many. The tenor can be stretched up to 10 years. You’ll enjoy a processing fee waiver if you opt for this loan.
- Maximum borrowing limit: With some loans such as the Cash Instalment Plan and the Line of Credit, you may be able to borrow up to 90% of the credit limit approved. If you’re an HSBC Premier Customer, you’ll enjoy an extended limit of 95%. In some cases, you may be able to borrow up to 6 times your monthly income with this line of credit. If you’re applying for the debt consolidation plan, however, the amount can be equal to the outstanding balances in your unsecured loan accounts in addition to an allowance of 5% (for first-time applicants only).
- Minimum borrowing amount: The minimum borrowing limit is S$1,000 for loan products such as the Line of Credit and Cash Instalment Plan loans from HSBC. It may not be less than S$5,000 for the HSBC term loan. If you choose the debt consolidation programme, the loan amount has to exceed 12 times your monthly income.
- Loan tenure: The tenure for various HSBC loans may vary from a few months to a few years. The lowest tenure is 6 months for Balance Transfer and the highest is 10 years for DCP. Compared to most lenders in Singapore who offer a maximum tenure of 5 years on their instalment loans, HSBC allows you to stretch your payments up to 7 years.
- Moderately Low Interest Rate: The applied rates can be as low as 0% p.a. on some loans depending on the repayment period chosen. It is 0% for a 6-month Balance Transfer loan. Also, you’ll enjoy a no-interest loan with HSBC’s Cash Instalment Plan if you choose the 1-year tenure or the 18-month tenure.
- Easy monitoring of the transactions: Get a monthly statement and an >annual loan account report to track your loan transactions – inflows and outflows. These statements will help you keep track of your payment due dates and also adjust your budget accordingly. Transactions made in relation to your line of credit will, however, not be reflected under these monthly statements.
- Easy application: If you receive any assistance with the application process, get in touch with the bank. They will help you complete the process in no time.
- Processing fee waiver: You may receive a complete waiver of the processing fees. This offer is available on the term loan from the bank on applications submitted by 31 October 2018. You’ll also enjoy a waiver of processing fees on the 12-month Balance Transfer loan. In general, it could be 1% of the loan amount approved and it will usually be charged upfront at the time of cash disbursal, if applicable.
- In-principle approval: With some loans such as HSBC Personal Loan, you’ll receive an almost immediate in-principle approval, provided the application is complete and the supporting documents are in order. Cash will be disbursed the very next day provided the bank has no further queries.
- Attractive promotional offers: The bank offers promotional deals on personal loan applications from time to time. The offer could be in the form of lower interest rates, fee waivers, cashback, and more. Don’t forget to keep an eye out on the validity of such offers. Also, some of these offers may be available exclusively on select channels of application.
- No guarantor required: You may not need to have a guarantor or submit a collateral to use one of the HSBC personal loans. The bank may, however, conduct a thorough background verification to determine your suitability for a particular loan and your ability to repay the loan on time.
- Multiple modes of repayment: To repay the monthly instalments or to pay the minimum amount due, you may use any one of the following options:By cheque
- By electronic fund transfer
- By cash
Interest rates on HSBC Loans
If your application for an HSBC loan is approved, you may be charged interest at the following rates:
|HSBC’s Cash Instalment Plan
||Between 0% p.a. and 6.88% p.a.
||Between 10.45% p.a. and 13.32% p.a.
|HSBC Personal Line of Credit
- 12% p.a. for Premier Customers
- 16.5% p.a. for Advance, Visa Revolution, and Platinum cardholders
- 18.5% p.a. for all other customers
||Between 0% p.a. and 4.88% p.a.
||Between 2.17% p.a. and 4.88% p.a.
|HSBC Personal Loan (term loan)
||Between 3.7% p.a. and 4.8% p.a.
||Between 7% p.a. and 9% p.a.
|Debt Consolidation Plan
||Between 4% p.a. and 5.7% p.a.
||Between 7.5% p.a. and 10% p.a.
Fees and Charges
Affordability of a loan is generally determined by two related but distinct factors – interest rates and fees. A loan is affordable when both these components remain low. With HSBC personal loans, you’ll enjoy affordable fees/charges along with attractive interest rates. The following fees may be relevant to these loans:
- Processing fee.
- Early repayment fee.
- Late fee.
- Overdue interest rate.
- Default interest rate.
- Minimum monthly payment and minimum interest charge in case of line of credit.
- Restructuring fee.
- Overlimit fee, if any, in case of personal line of credit.
- Service fees such as: Returned cheques, Statement retrieval and Failed GIRO payment.
Are You Eligible for These Loans?
Before you posit your application for approval to the bank, make sure that you meet the following conditions:
- You’re a citizen or permanent resident of Singapore.
- If you’re a foreigner, you may be eligible for some loans but may not be eligible for all. HSBC DCP is a case in point.
- You should be aged between 21 years and 65 years for most loans.
- Your minimum income should exceed S$30,000 or at least be equal to it in most cases. Loans for which foreigners are eligible, only those with a minimum income of S$40,000 may apply.
- If you’re a foreigner, make sure that you have an employment pass with a minimum validity of 1 year. For some loans such as the Personal Line of Credit, the validity of your employment pass can’t be less than 6 months.
- For DCPs, your balance-to-income ratio should exceed 12x your monthly income also.
Bear in Mind: Next-Day Approval Not Available on Redraw
Before you apply, spend some time considering the following points:
- Although approval by next day is a feature of term loans from HSBC, it is, however, not available on redraw requests.
- Next-day approval will also not be offered by the bank for loan amounts greater than S$100,000.
- You can’t consolidate your outstanding debts partially with HSBC DCP.
·There could be a minimum and maximum borrowing limit on a particular loan type. Any request for an amount outside this range may not be considered.
- Only one balance transfer per line of credit will be allowed.
- Once you have applied for a balance transfer loan, you may not be able to cancel it.
- The payment due date will be mentioned in the notification letter and the subsequent statements. If you don’t pay the notified amount on time, you’ll have to pay additional interest and charges.
- If you’re a foreigner, you may not be eligible for all the HSBC personal loan products available. Refer to the individual product pages on our website to check your eligibility.
- If you have set up a DCP arrangement, you’ll have no further access to your existing credit lines. No request for credit limit reviews will be entertained as long as you have unpaid balances in your account. In case your income increases, you can, however, apply for a credit limit increase on your revolving credit facility by submitting relevant documents.
- Promotional offers, if any, may not be available for loan redraws.
- The bank reserves the right to vary interest rates or certain loan clauses without prior notice or consultation.
- Loan tenure of 6 years and 7 years available on HSBC Personal Loan applies only to successful, salaried applicants.
- The Cash Instalment Plan loan may not be available on US-dollar denominated cards. It is also not available to holders of corporate cards.
What Are the Supporting Documents That You Will Have to Submit?
You’ll have to submit the following for validation:
- Your completed application.
- A copy of your NRIC, or your passport and employment pass, whichever is applicable.
- Proof of your mailing address if it is different from the one mentioned on your NRIC.
- Proof of the billed and unbilled outstanding balances in case of a DCP loan. You may also have to provide confirmation letters and online invoices to provide proof of purchase instalment plans, if any.
- You may additionally have to submit the following income documents:
- If you’re a salaried employee, you can provide any one of the following:
- Your electronic payslips for the last 3 months.
- Your latest Income Tax Notice of Assessment (NOA) with computerised payslip for the last 1 month.
- CPF statement for the last 6 months. The statement could be submitted online on the bank’s website. Your SingPass login may be required.
- If you’re a self-employed professional or a commissioned earner, you’ll have to submit your NOA for the last 2 years.
Want to Apply? Try One of the Following Channels of Application
Once you have decided to apply, you can use any of the following modes to complete the process:
- you wish to apply for HSBC Personal Loan or Debt Consolidation Plan, you can do so on our website.
For other loans, you may employ one of the following modes (as and where applicable):
- Submit your application online.
- Call the bank’s hotline.
- Fill up the contact form available on the bank’s website. A representative from the bank will get in touch with you.
Personal loans from HSBC can solve your short-term or your long-term cash needs depending on how you use them. Low interest rates and fees mean can reduce the chances of default. If you continue to make payments on time, you can actually see an improvement in your credit score instead of a dip which you might have expected when you had applied for the loan.