HSBC is considered as one of the largest and most successful banking and financial service organisations across the globe authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. It offers fixed-rate unsecured personal loans at very competitive rates.
HSBC is one of the ‘big four’ alongside Lloyds, RBS, and Barclays. HSBC stands for Hongkong and Shanghai Banking Corporation.
The name was formed because the bank originated from Hong Kong and Shanghai. After its acquisition of the Midland Bank, it moved its headquarters to London and in the early nineties, it was able to build up a substantial market presence in the United Kingdom.
People looking for large personal loans that have long loan tenures should consider the personal loans offered by HSBC.
Whether you are looking to consolidate debt, buy a new car, renovate your house, or you just want to take a much-needed vacation, HSBC offers competitive and flexible fixed-rate loans.
The loan application process via the HSBC website is quick and simple, and you do not have to have a current account with HSBC.
Why Should I Choose HSBC Personal Loan?
- The personal loans offered by HSBC are unsecured which means the decision for your loan approval will be based on creditworthiness, instead of the use of property or other assets as collateral.
- HSBC offers Personal Loan amounts between £1,000 to £25,000.
- If you are borrowing amounts between £1,000 and £15,000, the loan tenure can be between 1 to 7 years. If you are borrowing more than £15,000, the loan tenure can be between 1 to 8 years.
- HSBC Personal Loans come with fixed monthly repayments. The interest rate for your loan is fixed which means you will pay the same amount every month and will know the overall cost of your loan.
- With the personal loans of HSBC, you will be given the option to take a repayment holiday for the first three months or for every January for the life of the loan.
- Customers that do not have HSBC current accounts should be contacted about a credit decision within 2-5 working days, while those who own HSBC current accounts could get an instant credit decision.
- For non-HSBC current account holders, you can receive your loan proceed within a minimum of 3 working days after the receipt of the signed loan agreement, while HSBC current account holders who apply online could instantly receive the funds.
- Customers of HSBC Advance may be eligible to receive cashback at the end of the loan term.
Am I Eligible To Apply For An HSBC Personal Loan?
To apply for an HSBC personal loan you must meet the following requirements:
- Be more than 18. years old.
- Have an annual income of at least £10,000.
- A resident of the United Kingdom.
- Have a UK-based bank or building society account that can pay direct debits.
- You must be willing to undergo a credit register search and credit scoring.
Important Note: The HSBC Personal Loan is not available for customers who have a Basic Bank Account.
How Do I Apply For An HSBC Personal Loan?
If you have met the requirements to apply for a personal loan with HSBC, you will need to present the following:
- Your ID
- Your address information for the last three years
- Your current income and employment information (I.e. bank statements and payslips)
After presenting the documents, you will be required to accomplish the application form via the HSBC website. You will also be required to provide the sort code and account number of your bank or building society account.
How Much Is The Cost Of An HSBC Loan?
HSBC charges a fixed amount of interest which they add to the loan when they open the loan account. The total amount that you will need to pay will be the sum of the interest and the loan.
Even though it is added upfront, they work out the interest (and the APR) as if the loan amount was reduced by every projected repayment, using the number of monthly repayment, the period of the loan, and the interest rate.
For these purposes, they assume that they provide the loan one month (or, if you opt to take advantage of an initial payment holiday, three months) before the first scheduled repayment date.
For HSBC Advance Account Holders
If you are, however, a holder of an HSBC Advance account at the time of the opening of your loan and the duration of your loan repayment is 60 months or less, the cost of your loan will be less as compared to non-HSBC Advance Account holders.
This is because you will be entitled to a cashback at the end of the term.
They will give you a cashback equal to 10 percent of the total interest that was charged over the duration of the agreement within a period of 10 days from the date that you repay the loan.
However, you can only receive the cashback if you have made all your repayments on time and do not repay the loan or part of it early.
A letter with the cashback amount and the account it will be paid into will be sent to you.
HCBC Personal Loans are not offered for several purposes including:
- The acquisition of properties or lands (both in the United Kingdom & abroad) including apartments and holiday homes
- Purchase of a joint stake in a property or buying out a joint owner
- Mortgage deposit (regardless of country or lender)
- Giving out funds to third parties to support the acquisition of a property, including stamp duty, solicitor’s fees, and mortgage deposits
- Business purposes
- Share dealing
Premier Personal Loans
A Premier Personal Loan is exclusively offered to HSBC Premier customers. Unlike the regular HSBC Personal Loan, customers who are eligible for this type of personal loan can borrow funds amounting from £1,000 to £50,000.
If you borrow £15,000 or less, your loan tenure can be one to five years or one to eight years for loans more than £15,000.
Premier Personal Loans Eligibility Requirements
To be eligible to apply for a HSBC Premier Personal Loan you need to:
- Be a holder of a HSBC Premier Account
- Be at least 18 years old
- Have a residential address that is within the European Union
Frequently Asked Questions
- Can I add to my HSBC loan?
Answer: If you already have a personal loan from HSBC and you experienced financial difficulties, taking additional borrowing could be the answer to your problems.
With HSBC, you have the option to consolidate your existing loan with additional borrowing. You can choose to apply to borrow more money through online, mobile, telephone or branch application.
- Can I make an early repayment?
Answer: Yes. You could also potentially save on interest by doing so. You just must let HSBC know that you would want to pay off the loan early in writing or by phone.
If you choose to repay part of your loan early, your monthly repayment amount will remain the same, however, you can potentially repay the loan faster.
You must remember that if you request to pay off your loan early, you may still be charged interest beyond this point.
You will be given a final settlement figure and a time frame on when to pay this amount.
It is important that you check the early repayment terms prior to applying for any personal loan. If there is a possibility that you will be able to pay for a loan early, then good early-repayment terms should be a significant factor in deciding which lender to choose.
- How must I repay my loan?
Answer: You must pay the monthly repayments that are set out in your loan agreement. If a scheduled repayment date is a non-working day, you must make the repayment on the next working day.
- Will I be able to request for a change to my monthly repayment date?
Answer: After you have successfully made your first repayment, you will have the option to change the monthly repayment date if you make a request from the bank.
You must remember, however, that they will not be able to change your next repayment date, but they will be able to change all your subsequent repayment dates.
You will only have the option to change the date twice in any 12-month period. You must note that changing the repayment dates will not, in any way, influence the amount of interest that you will pay for the loan.
- Can I use any other funds to repay the loan?
Answer: If HSBC holds any money for you on another account (for example, if you have money in a savings or current account), they can use it to reduce or repay any sums that you were not able to pay under your loan agreement with them.
You must keep in mind that they will only do this after they have checked that you have enough amounts left in your accounts to cover your essential living costs.
They will first give you an advance notice and the opportunity to fix the problem.
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