(Updated 31 January 2017) Is HSBC Personal Loan the right fit for your financial need?
With so many personal loans shoved on your face when you go on searching for the right one, you need to consider various facts. Here are the questions you should be asking.
- What unique features should I expect?
HSBC Personal Loan Features
Each personal loan has various features to offer. Of course you are looking for the one which is the most flexible in various points. HSBC personal loan offers a loan amount of up to 8 times your monthly income. Before you get excited, know that this feature is only limited for Singaporeans and Permanent residents with monthly income of at least $120, 000. And even if you are earning $120, 000 a year, the maximum amount you can actually borrow is limited to $200,000. If you are earning at least $30,000 a year, you can borrow up to four times (4x) your salary.
HSBC personal loan has fixed monthly repayment. This gives you the advantage of planning your expenses for a few months ahead. The salaried employees can apply for a personal loan up to seven years. However, if you are not a regular employee, you must settle for only until five years.
If you have an existing personal loan with HSBC, you can opt to redraw. The minimum loan you can redraw is $1, 000. Whether your redraw application has been approved or denied, you are still responsible for your existing loan. Remember to always pay diligently to keep a good credit score. If your application is approved, you no longer have to pay a processing fee.
Another feature is the 1 minute approval in-principle. While this sounds great, you have to apply online between 8 am and 11.59pm to get the fast approval. Also, hope that there is no undergoing system maintenance with the bank’s server.
- Do I qualify?
HSBC Personal Loan Eligibility
Before you start your online application, it is vital to check first if you are eligible. This saves you time and effort.
The HSBC personal loan is offered to Singaporeans and Permanent Residents ages 21 to 65 years old. You must earn at least $30,000. If you are self- employed, you must earn at least $40,000. If case that you are a foreigner, you must have an E-pass with one year validity.
- What required documents should I have?
HSBC Personal Loan Requirements
For salaried employees, they must present their clear photocopy of NRIC and the latest 3 months’ payslips. The latest Notice of Assessment or latest 6 months’ CPF statement will also do fine. If you are self-employed, you need to provide your last 2 years’ Notice of Assessment with your NRIC. For foreigners, they need to submit their passport, E-Pass and latest 3 months’ computerised payslips
- How much can I borrow?
HSBC Personal Loan Amount
Depending on the bank’s discretion, you may borrow from S$5,000 up to four times your monthly salary. As mentioned above, you can borrow up to $200, 000, but only if you are earning more than $120, 000 a year.
- What is the interest rate?
HSBC Personal Loan Rates
If you are a type of person who weighs more on the interest rate, it is better to compare loans with Equivalent Interest Rate per annum. HSBC personal has a flat rate of 3.8% to 5.0%. This is the advertised interest rate, however the EIR per year is 7% to 9%.
The interest rate will greatly depend on the loan tenor you choose and the kind of client you are to the bank: premier, advance or Retail Banking Customer.
- What are the other fees I have to pay?
HSBC Personal Loan Fees and Charges
Of course, when getting a loan, you must understand that there are various fees that you might be subjected to. The processing fee is S$88. If you want to settle your loan earlier than agreed on your loan contract, you have to pay an early repayment fee of 2.5% of the outstanding balance. If you missed your due dates, you will be subject to late payment interest worth of 2.5% in addition to the prevailing interest on the outstanding amount.
- How will I get the money I borrowed?
HSBC Personal Loan Disbursement
You can access your borrowed cash through any HSBC branch in Singapore or ATM. Upon loan disbursement, a repayment account will be opened in your name. You can withdraw your cash over the counter of HSBC branches.
- What are the modes of repayment?
Your repayment date will be a month after your cash disbursement. You may deposit your repayment in your repayment account through check, over the counter or via bank transfer. Should you miss your due date, you have to pay a late repayment penalty.
If you want to get a loan and have the cash disbursed to your hands in just 30 minutes, you can get it from Cash Mart. Cash Mart offers quick cash loans with flexible repayment schemes to fit your needs and wants.
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