Suppose you need money for large purchases, debt consolidation, or emergency expenses. In that case, applying for an HSBC bank personal loan might be an excellent option for you. HSBC allows you to borrow money at a relatively lower interest rate and a workable repayment term.
Here are a few essential things that you should know before applying for an HSBC personal loan.
How Much Money Can You Borrow with an HSBC Bank Personal Loan?
HSBC offers various personal loan plans for its regular current account customers ranging from £1,000 to £25,000. You can also apply for an HSBC personal loan, even if you are a non-HSBC current account holder. HSBC allows its premium customers to borrow money up to £50,000.
How Much Interest Does HSBC Charge?
HSBC offers an impressive 3.3% representative APR for loans between £7,000 and £15,000. HSBC also charges interest at a relatively lower rate on other personal loan amounts.
However, the exact amount of interest may vary based on your financial circumstances. It also depends on the total amount borrowed and the repayment term.
How Many Repayments Can You Make?
HSBS allows you to spread your payback period from 1 to 5 years for loans of £15,000 and less. You can extend this period from 1 to 8 years for loans over £15,000.
Remember, the longer you spread your repayment period, the higher you will have to pay the loan’s interest.
Does HSBC Offer Further Lending with an Existing Personal Loan?
HSBC allows you to get some extra money when you have been already holding an HSBC personal loan. You could apply for further lending in two ways:
1) Top Up Your Existing HSBC Bank Personal Loan
The customers who currently own an HSBC personal loan can apply for topping up this loan. If HSBC approves your application for further lending, it will automatically merge your existing loan with the new loan.
Therefore, you will be still paying one monthly repayment for your topped-up loan. However, HSBC may charge the interest at a relatively higher rate than what you are paying currently.
2) Get an Additional HSBC Loan
You can also choose to apply for an additional loan from HSBC and keep monthly repayments of your existing personal loan separate. You can avail this option to get HSBC loans other than a personal loan such as a car loan and home improvement loan.
Still, the total amount you can borrow with an additional HSBC loan and its interest rate depends on your credit score.
Does HSBC Accept Overpayments?
HSBC allows its loan holders to repay monthly installments in excess. HSBC accepts these overpayments free of any additional charges or penalties. These overpayments may prove beneficial in the long run, as you could reduce the total amount of interest with them.
Does HSBC Allow Repayment Deferral?
Like many other lenders, HSBC allows its loan holders to enjoy a repayment holiday when they can defer their monthly installments for up to 3 months. Usually, the HSBC repayment holiday starts from the first month of the year and is referred to as the January holiday.
Besides a regular repayment holiday, HSBC has also introduced a special repayment deferral for those affected by the coronavirus outbreak. Suppose the COVID-19 has directly or indirectly impacted you. In that case, you can apply to defer your monthly repayments for three months.
HSBC assures you that this repayment deferral will not leave a negative impact on your credit report.
Advantages of Being an HSBC Account Holder
Although, HSBC allows you to apply for a personal loan even if you are a non-HSBC current account holder. However, HSBC offers some special features that only HSBC customers can use. These features are:
1) Get a Quick Credit Decision
HSBC responds quickly to the loan applications of its existing customers. Therefore, HSBC account holders could get an instant credit decision on their loan application.
HSBC may take 2-5 working days to respond to loan applications from the non-HSBC applicants.
2) Quick Access to Funds
HSBC immediately transfers the borrowed amount to its customers’ accounts once their loan application has been approved and they have signed the loan agreement. Non-HSBC applicants may have to wait for three working days to get funds in their nominated account once they have signed a personal loan agreement with HSBC.
3) Apply in the Mobile App
HSBC allows its customers to apply for mobile banking and manage their financial activities effortlessly with a mobile app. You can download the HSBC mobile app from the App Store and Google Play. Being an HSBC customer, you can use this app to apply for an HSBC personal loan in just a few clicks.