Best HSBC Personal Loans in Hong Kong 2020
When it comes to banking, HSBC is one of Hong Kong's most trusted names. So it's no surprise that many residents turn to HSBC for a personal loan when in need of cash. Here's a guide to HSBC's loan offerings.
HSBC Personal Loan
Max Repayment Period
The option that gives you the most flexibility, the HSBC Personal Instalment Loan allows you to borrow up to 12 times your monthly salary or HK$1,500,000 (whichever is lower). You can choose a repayment period of up to 60 months.
To qualify for the loan, you need to be a Hong Kong resident, at least 18 years old and have a salary of at least HK$5,000 a month.
You can easily apply online for this personal loan, which saves you the hassle of going down to the bank. If you are an existing HSBC customer with a valid HSBC bank account and you submit a complete online application during the bank's working hours (Mon to Fri 9am to 8pm, Sat 9am to 5pm, Sun and public holidays 12pm to midnight), you can get immediate approval and funds disbursement.
Also, after you have started repaying your loan for at least 3 months, it is possible to "redraw" some or part of the repaid principal (minimum HK$3,000) without having to apply for another loan.
*Calculation based on loan amount of HK$1,500,000 and repayment period of 12 months; the actual APR may vary for individual customers.
HSBC Debt Consolidation Loan
Max Repayment Period
Are you having trouble keeping up with multiple credit card bills and personal loans? The HSBC Personal Instalment Loan Balance Consolidation Program is meant to help consolidate and clear all your outstanding debts, so you only need to service just one loan.
You can borrow up to 21 times your monthly salary or HKD1,200,000 (whichever is lower). The key benefit is that you can choose a repayment period that suits you, from 12 months to 72 months (1 to 6 years). Interest rates are customised according to your profile and circumstances.
To apply for this debt consolidation loan, you must be a Hong Kong resident, at least 18 years old, and have a monthly income of HK$7,500 or more. You do not need to submit proof of income if you have kept an HSBC payroll account for at least the past month.
*Calculation based on loan amount of HK$200,000 and repayment period of 72 months; the actual APR may vary for individual customers.
Note: The final loan amount approved by HSBC and the loan tenure is evaluated on a case by case basis. Please contact HSBC for details.
How to Apply for HSBC Personal Loan?
Choose Your Loan Product
Find a suitable loan product that best fits your financial needs. Make sure you read the fine print and understand the loan structure. Once selected, fill in the application form and submit all the required documents.
Wait for Your Loan Approval Result
You may receive an automated SMS from HSBC detailing you to call back on their hotline 22882191. This is because HSBC may require to confirm some additional details in order to facilitate fast approval of your loan. You will have 3 working days upon receiving the SMS notification to contact HSBC in order expedite your application approval.
Disbursement of Your Loan
Once all the required information is successfully added into the Bank's application evaluation system, the bank may provide instant application result and fund disbursement. Please note that the processing time may vary depending on the actual circumstances of individual applications.
HSBC Loan Offers & Promotions
HSBC Loan Application Supporting Documents
At minimum, HSBC personal loan applicants should prepare the following documents at the time of your application in order to speed up the approval process.
Proof of Identity
You are required to submit a copy of your permanent HKID (Hong Kong ID) card. For non-permanent HKID card holders, you will need to submit your work visa details and employment letter as well.
Proof of Employment
HSBC will require you to furnish employment-related documents such as your work visa, official employment contract, and official employment letter which states the business name, job title, office address and contact, and salary details.
Proof of Income
You do not need to provide this if you have a payroll account with HSBC. Otherwise, full-time salaried employees are required to submit one month's worth of income proof. If you freelance or earn an irregular income, you will need to submit it for 3 months. Accepted forms of proof include your payroll slip, bank statement, tax demand note, or letter from employer.
HSBC Loan Fees & Charges
When assessing personal loans, you will most likely pay close attention to the APR. But that's not the only cost of borrowing money! Be aware that there are other general fees that HSBC may charge you.
Most HSBC loans will have a handling fee, but from time to time, HSBC may offer HK$0 handling fee as a special promotion for selected personal loan products.
Late Charge Fee
If you make a late payment on your HSBC loan, you will be charged 2.25% per month (calculated on a daily basis). There is an additional HK$400 penalty on each instalment that you cannot repay due to insufficient funds in your repayment account.
Early Redemption Penalty
If you would like to clear your HSBC loan earlier than scheduled, bear in mind that you will need to pay a penalty of 2% of the outstanding principal amount. HSBC will also claim back any promotional offers you got when you applied for the loan.
Frequently Asked Questions
What is the difference between HSBC personal loan and HSBC tax loans?
- HSBC personal loans are available year-round, whereas tax loans are seasonal loans offered by HSBC during income tax season. The latter usually has a lower APR, but the repayment window is also much shorter than that of a personal loan. It's recommended that you pay off your tax loan within one year, whereas an ordinary personal loan can be stretched up to 6 years.
How are interest rates calculated for HSBC personal loans?
- The APR stated on HSBC's website and marketing collaterals are for reference only; ultimately, HSBC will still offer you a personalised interest rate after they have assessed your credit profile and the risk level of lending money to you. Typically, the higher the risk (e.g. you have a poor credit score), the higher the interest rate quoted for you.
What is the highest HSBC personal loan amount?
- For HSBC personal instalment loans, applicants can borrow up to HKD1,500,000 or 12 times your monthly salary, whichever is lower.
Can you extend an HSBC personal loan?
- Yes, but only on a case-by-case basis. If there is something that's preventing you from making your loan repayments on time, the first thing to do is to contact HSBC to tell a customer service officer about your case. You might be able to extend the loan tenure to reduce your monthly repayments to a more manageable amount.