Looking for cash with easy access? Try out HSBC Investment Financing. Learn all the risks before you go on with the plan.
HSBC Investment Financing is a secured loan offered to those willing to use their assets. But, of course, the limit will depend on the type of asset pledged by the borrower. So why would Singaporeans be interested in HSBC Investment Financing?
It offers flexibility. It means a borrower can access cash in various ways. Examples are cheques, ATMs and other channels. If you need to make a sudden purchase for your business, you can do so anytime. But, you will only incur interest on the amount used. No worries. It is as low as 3% per year.
The funds are readily available at your fingertips. However, there is a charge with the interest rate on a daily balance basis. There is no minimum withdrawal nor a minimum repayment amount. There is not even a service fee, unlike the credit card’s cash advance. However, remember to control your use of funds.
If taking an HSBC Investment Financing, you must understand the Maximum Advance Ratio. The bank explains this as the maximum percentage of your assets’ value which you can access for extra cash. Simply put, this is the limit of your funds. The Maximum Advance Ratio is granted subject to the bank’s discretion.
If you use a time deposit in local currency, your MAR may be up to 100% of its value. If it is in foreign currency, you can access up to 90%. The MAR of Unit Trust, Notes, Bonds and Structured Deposits will depend on the bank’s Product Risk Rating (PRR).
The risk rating has 6 levels. Secured is 0, while the Speculative is 5. If your Unit Trust falls on the risk rating of 5, you can only access 50% of its value. The maximum funds that banks allow you to withdraw are70% of Unit Trust.
You can access 30% to 60% of their value for Notes, Bonds, or Structured Deposits. As for shares, you can withdraw half of the total value.
Unfortunately, there is a risk to your assets. You can use time deposits, bonds, unit trusts, shares and structured notes distributed by the bank. Then it will check on the Product Risk Rating (PRR) table to know how much is your overdraft limit.
There might be a decline in your assets’ value as time goes on. It will reduce its Maximum Advance Ratio. It may result in your unpaid balance exceeding the overdraft limit. In such a case, there will be three scenarios that can possibly happen:
It is important not to overuse the funds with these risks though it is always available for you. With every withdrawal, be reminded that you are charged with an interest rate daily. The longer your outstanding balance goes unpaid, the higher the chance it could develop into uncontrolled debt. And this will also ruin your portfolio.
Do you need a flexible loan without any risk to your assets? Then, you can just shop around for a better money lender like Cash Mart. Cash Mart offers various unsecured loan products with flexible payment terms to fit your needs. Drop by the office at 277 Balestier Road to learn how to get cash in just 30 minutes.