(Updated 31 January 2017) Is HSBC Personal Loan the right fit for your financial need?
With so many personal loans shoved on your face, you need to consider various facts when you search for the right one. So here are the questions you should be asking.
Each personal loan has various features to offer. But, of course, you are looking for the most flexible one in multiple points. For example, HSBC loan offers a loan amount of up to 8 times your monthly income.
Before you get excited, know that this feature is only limited to Singaporeans and Permanent residents with a monthly income of at least $120,000. And even if you are earning $120,000 a year, the maximum amount you can borrow is limited to $200,000. If you make at least $30,000 a year, you can borrow up to four times (4x) your paycheck.
HSBC personal loan has fixed monthly repayment. Therefore, it gives you the advantage of planning your expenses for a few months ahead.
The salaried employees can apply for a personal loan for seven years. However, if you are not a regular employee, you must settle for only 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 always to 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 11.59 pm to get fast approval. Also, you hope that there is no system maintenance with the bank’s server.
Before starting your online application, it is vital to check if you are eligible. It saves you time and effort.
The HSBC personal loan is for Singaporeans and Permanent Residents ages 21 to 65. You must earn at least $30,000. If you are self-employed, you must earn at least $40,000. You must have an E-pass with one-year validity if you are a foreigner.
Salaried employees must present their clear photocopy of NRIC and the latest 3 months’ payslips. The latest Notice of Assessment or the 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. Foreigners need to submit their passport, E-Pass, and the latest 3 months’ computerised payslips.
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 earn more than $120,000 a year.
If you weigh more on the interest rate, it is better to compare loans with Equivalent Interest Rates per annum.
HSBC personal loan has a flat rate of 3.8% to 5.0%. It is the advertised interest rate. However, the EIR per year is 7% to 9%.
The interest rate will significantly depend on the loan tenor you choose and the kind of client you are to the bank: premier, advance or Retail Banking Customer.
Of course, when getting a loan, you must understand that various fees might subject you. For example, the processing fee costs $88.
If you want to settle your loan earlier than agreed on your loan contract, you must pay an early repayment fee of 2.5% of the outstanding balance.
If you missed your due dates, there’s a late payment interest worth 2.5%. It is an addition to the prevailing interest on the outstanding amount.
You can access your borrowed cash through any HSBC branch in Singapore or ATM. Upon loan disbursement, you will open a repayment account under your name.
In addition, you can withdraw your cash over the counter of HSBC branches.
Your repayment date will be a month after your cash disbursement. You may deposit your repayment in your repayment account through a check, over the counter or via bank transfer.
If you miss your due date, you must settle 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.