• Personal loans that offer tenure of 7 years

    Personal Loan BYTES FROM OUR KITCHEN

    Personal loans are a great way to ease financial burdens and meet any expense that requires an additional influx of cash and provide the borrower with a required amount that can be used in any way deemed fit by a borrower.

    Importance of tenure

    • One of the defining characters of a personal loan is the tenure it offers. The tenure options for any particular personal loan dictate how easy it would be to repay the loan and also determine the flexibility of the loan.
    • Choosing the right tenure dictates how easy it would be to repay the loan. The loans with higher tenures result in more money being paid towards interest but will also reduce the overall instalment amount the borrower will have to pay each month.
    • If the tenure chosen is the minimum available tenure which is 12 months for most personal loans, the interest paid would be lower but the instalment amounts would be much higher. While the goal is to pay the loan off as soon as possible, having high loan instalments can make it difficult to make payments on time every month. Emergency expenses can crop up and when they do, high loan instalments make it harder to come up with the payment.
    • Most personal loans offer tenures ranging between 1 to 5 years with the exception of a few. HSBC’s Personal Loans are a prime example of a loan that offers higher tenures of up to 7 years allowing borrowers to have lower monthly instalments making it easier to pay. The features of the HSBC Personal Loan are given below.

    Features of the loan

    • The HSBC Loan allows borrowers to get loan amounts of up to 4 times their monthly salary and offers repayments through fixed instalments.
    • The loan is an unsecured loan which does not require any guarantor.
    • The minimum loan amount available is S$5,000.
    • The maximum loan amount available is dependent on the borrower’s salary. For those earning a minimum annual income of up to S$30,000 toS$120,000, the maximum loan amount available is 4 times the monthly salary subject to a maximum loan amount of S$100,000.
    • For borrowers whose minimum annual income exceeds S$120,000 the maximum loan amount available is 4 times the monthly salary subject to a maximum of S$200,000.
    • The minimum tenure that the loan offers is 1 year and the maximum tenure available for self-employed applicants or commission based earners is 5 years. Salaried applicants can enjoy higher tenures with the maximum tenure being 7 years.
    • The loan allows borrowers to redraw on their existing personal loans and do not charge any additional processing fees.
    • The loan offers exclusive promotional offers for borrowers who apply for the loan online. Benefits of applying online include a cashback of S$50 for approved applications that have been submitted online plus a preferential interest effective interest rate starting from 7.1% p.a. plus an S$88 waiver on the processing fees of the loan.
    • The loan is suited for those in need of additional funds in a hurry and offers an in-principal approval of the loan within one minute.

    Documents Required

    Aspiring borrowers will have to submit the following documents during the time of submitting the application.

    For salaried applicants:

    • A copy of the applicant’s NRIC (both sides).
    • One of the following – Latest payslips dating back at least 3 months or latest one month’s payslip with latest copy of assessment notice or latest copy of CPF statement dating back at least 6 months.

    For applicants who are self-employed or commission based earners:

    • A copy of the applicant’s NRIC (both sides).
    • A copy of the latest notice of assessment dating back at least 2 years.
    • A copy of the business registration certificate.

    For foreign applicants:

    • A copy of the applicant’s Passport.
    • A copy of the applicant’s Employment Pass which has a remaining validity of at least one year.
    • One of the following – Latest payslips dating back at least 3 months or latest one month’s payslip with latest copy of assessment notice or latest copy of CPF statement dating back at least 6 months.
    • All applicants must provide a copy of their utility bill to serve as proof of residence if their address appearing on any of the documents differs from the one mentioned in the application form.

    Fees and charges

    • The loan charges a processing fee of S$88. This fee is deducted from the loan amount approved and the final amount is disbursed to the borrower’s repayment account.
    • The processing fee is waived for HSBC Premier Customers who apply for the loan online.
    • The loan charges an early repayment fee of 2.5%of the redemption amount.

    Interest rates

    • Interest rates offered varies on mode of application as well as tenure chosen. The promotional interest rate offered for new customers for an approved loan amount of S$10,000 is 10% p.a. if the tenure chosen is 1 to 2 years and 9% for tenures ranging from 3 to 7 years.
    • Effective interest rate offered for HSBC Premier Customers is 7% p.a. and for HSBC Advance customers, the rate offered is 8% p.a.
    • Promotional interest rates apply to those loans that are approved by 31st March 2017.
    • Interest rates depicted are subject to change without prior notice. Applicants must check with HSBC to find out the latest prevailing interest rates

    Eligibility Criteria

    • Applicants applying for the HSBC Personal Loan should meet certain minimum eligibility requirements that are as follows.
    • The minimum age of the borrower must be at least 21 years.
    • The maximum age of the borrower cannot exceed 65 years.
    • The minimum annual income required for Salaried Singaporean Citizens and Permanent Residents is S$30,000.
    • The minimum annual income required for Self-employed/commission based Singaporean Citizens and Permanent Residents is S$40,000.
    • The minimum annual income required for foreign applicants is S$40,000.

    Frequently Asked Questions

    Q) Are there any terms and conditions attached to the online application benefits?

    A) Yes. The waiver on the processing fees is a promotional offer that is valid till 31st March and is not applicable for customers who opt for a redraw on their existing loans. The cashback offered is valid only for new borrowers and is credited to the borrower’s account within 3 calendar months from date of loan disbursal.

    Q) How can one repay the HSBC Personal Loan?

    A) Repayment of the loan occurs through monthly instalments. These instalments can be paid through Cheque, Cash or online Bank Transfers.

    Q) How will the loan amount be disbursed?

    A) The loan amount is disbursed upon final approval of the loan application. The approved loan amount will be disbursed into a new HSBC repayment account. The borrower will have to make repayments to this account. The funds disbursed to this account can be accessed over the counter at any HSBC branch or through an ATM card which shall also be provided to the borrower via post.

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