HSBC Personal Loan

Features and Benefits of HSBC Personal Loan

HSBC Personal Loan is a perfect tool for anyone looking for quick monetary assistance to cover expenses such as arranging a marriage function, planning a vacation, education fees, and so on. Moreover, HSBC Personal Loan is also ideal for financing a home renovation, balance transfer, purchase of types of equipment, and contingencies. One can avail of the benefits of the HSBC Personal loan for a maximum of 5 years with a minimum tenure being six months.

Furthermore, the financial institution offers its personal loan scheme with lucrative interest rates.

The current HSBC Personal Loan interest rate ranges from 9.75% to 16%. This piece aims to guide readers extensively about the HSBC Personal Loan, its features, fees and charges, and other related information.

With the HSBC Personal Loan, borrowers can access the full range of features and benefits that the schemes come with. Moreover, the scheme has been designed to meet the needs of borrowers in myriad ways. Here are some of the features and benefits of the HSBC Personal Loan that customers can expect when availing of the benefits HSBC Bank Personal Loan.

• HSBC offers personal loans with a minimum of 6 months to a maximum of 5 years. Customers can choose the range of tenure in the multiples of 6 months.
• Borrowers can utilise the Electronic Clearance System (ECS) for making their EMI payments. Customers can also incorporate the Standing Instruction (SI) feature with the HSBC account. 
• HSBC facilitates transferring an existing loan under improved interest rates. 
• The absence of collateral makes this scheme a lucrative choice for the borrowers.
• HSBC enables quick sanctioning of loans making a hassle-free user experience. 

HSBC Personal Loan Eligibility

Applicants must adhere to specific guidelines before applying for the HSBC Bank Personal Loan scheme. These guidelines are as listed below:

• The loan scheme is limited to only residents and citizens of India.
• For salaried customers, the age range should be between 21 and 60, whereas, for self-employed customers, the age range should be between 21 and 65. 
• It is a requirement that applicants be either salaried professionals or self-employed professionals. 
• The residence address should be within India. The bank would also require address proof to authenticate the same. 
• It is mandatory to open an HSBC savings account at least three months before availing of the HSBC Bank personal loan scheme. 
• The loan scheme is restricted to applicants who reside in one of the following cities. These are Ahmedabad, Bangalore, Chandigarh, Chennai, Kochi, Coimbatore, Hyderabad, Jaipur, Kolkata, Mumbai, New Delhi, Pune and Visakhapatnam (only employees of HSBC Visakhapatnam).

HSBC Personal Loan Interest Rates

A customer can avail of the benefits of an HSBC Personal Loan with an interest rate as minimal as 9.75%. The prevailing HSBC Personal loan interest rates range from 9.75% to 16%. As per statistics, the third quarter of 2022 saw an average interest rate of 12.28%.

Moreover, the rate of interest offered to the customer depends on the borrower’s creditworthiness. Ideally, one must have a credit score of 750 or above to qualify for the lowest possible interest rate.

Factors Affecting HSBC Personal Loan Interest Rates

Personal loans are one of the most versatile loans that can be utilised for various purposes. Banks compete hard to devise their schemes with the best possible features. This majorly includes keeping the interest rates with the right balance between profitability to the bank and affordability for the customers. With that said, some factors affect HSBC Personal Loan interest rates.

Income

The borrower’s income gravely affects the loan scheme’s interest rates. This is mainly because banks prefer applicants with a steady revenue source. This can help the borrower get a lower interest rate deal with the bank. 

Debt-to-Income Ratio

Another factor that affects interest rates is the debt-to-income ratio. If an individual has unpaid debts, it may affect their repayment ability, invoking the banks to increase customer interest rates. 

Credit Score

Banks heavily rely on a person’s credit score or CIBIL score. The score represents the creditworthiness of the borrower. The interest rates are adjusted accordingly if an applicant has a higher CIBIL score. More the CIBIL score, the lower the interest rate assigned. HSBC Bank personal loan considers a score of 750 and above. 

Employment

Personal loans are as versatile as they are unsecured. It is, therefore, only logical that lenders assess a few factors to determine whether an applicant is creditworthy. Consequently, lenders prefer borrowers that are employed or working professionals as they bring in the quality of being more financially stable. Naturally, interest rates affect when it comes to borrowers having an accountable financial foundation.                

Repayment History

A lender may impose high-interest rates or even deny your loan application if they discover defaults in your credit history. Lenders prefer clients with a clean 12-month credit history.

HSBC Personal Loan Fees and Charges

While applying for an HSBC Bank Personal Loan, customers will be required to pay a percentage of the loan amount as a processing fee. This amount will be a single-time non-refundable, which customers will have to pay on top of their interest payments.

Moreover, in case the customer is making any prepayments, there will be additional penalty charges that they have to pay. HSBC Personal Loan Fees and Charges are as given below:

Documents Required for HSBC Personal Loan

The documents required for applying for an HSBC bank personal loan scheme are as follows:

• Signed application form with photograph
• Copy of passport/voter ID card/driving license
• Fee processing cheque
• Last three months bank statement/ six months bank passbook
• Recent salary slip and current dated salary certificate with the latest Form 16 in the case of salaried applicants
• Latest Bank statement and latest ITR or Form 16 in the case of self-employed applicants

How Does the EMI Calculation Work for HSBC Personal Loans?

Use one of the many online personal loan EMI calculators to determine the monthly EMIs for the personal loan. The calculator accurately calculates the user’s results by accounting for the principal amount, interest rate, and tenure.

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Here,

• ‘P’ stands for the Principal amount
• ‘R’ stands for the interest rate
• ‘N’ stands for the tenure