HSBC Personal Loan Review: The Most Affordable Short-term Loan

HSBC Personal Loan Review: The Most Affordable Short-term Loan

The cheapest and most affordable personal loan interest rates are offered by HSBC here in Singapore. Customers can borrow a considerable amount through the HSBC personal loan and expect to pay only a minimum amount compared to other banks, making them one of the best options for a personal loan in the country.

Good for Bad for
  • Customers looking for affordable personal loans
  • Foreigner customers seeking personal loans in Singapore
  • Customers who are looking for specific-use loans

Editor’s Rating: 5.0/5.0

Features and Benefits

The HSBC personal loan in Singapore is famous for its highly competitive interest rate, which is the cheapest market. The bank (who also offers financial products like the HSBC credit card, HSBC Premier debit card, etc.) leads the market with its low effective interest rate for its instalment loan and processing waiver for those who apply online. The HSBC personal loan also has the longest tenure (7 years) available. If you are looking for the most affordable personal loan in Singapore, HSBC is one of your best options.

 

Interest Rates and Fees

Borrowing personal loans of up to SGD 10,000 through the HSBC Personal loan, you can use the following table to see how much customers have to pay in installments monthly. The processing fee waiver is already in place for this table, and the income is set to be at SGD 30,000.

Loan Duration Flat Rate Processing Fee Effective Interest Rate (EIR 7) Monthly Payment Total Cost
1 year 3.70% SGD 0 7.00% SGD 864.17 SGD 370
2 years 3.70% SGD 0 7.00% SGD 447.50 SGD 740
3 years 3.70% SGD 0 7.00% SGD 308.61 SGD 1,110
4 years 3.70% SGD 0 7.00% SGD 239.17 SGD 1,480
5 years 3.70% SGD 0 7.00% SGD 197.50 SGD 1,850
6 years 3.70 SGD 0 7.00% SGD 169.72 SGD 2,220
7 years 3.70 SGD 0 7.00% SGD 149.88 SGD 2,590

The HSBC personal loans charge customers an early repayment fee of 2.5% of the redemption amount and a late fee of 2.5% on top of the prevailing interest on the overdue amount; this is similar to the policies for personal loans of other banks that a customer can pay in cash or via credit cards. Therefore, it is recommended that if you borrow a personal loan from HSBC (or any bank for that matter), you repay in a timely fashion.

 

How Does It Compare to Other Banks?

The HSBC personal loan is one of the most highly-acclaimed in Singapore because of its low total cost, loan tenor of up to 7 years, and competitive rates. HSBC customers can use the following table of contents to compare how well it fares against other personal loans in the market. All the details presented are from the specific service provider taken from their online banking services.

Bank Maximum Loan Amount Interest rates Monthly repayment Processing Fee
OCBC Up to 6x monthly income 8.2%p.a. – 13.1%p.a. Lowest at SGD 238 2% of the maximum loan amount or SGD 200
DBS-POSB Up to 10x monthly income 3.88%p.a. Lowest at SGD 199 1% of the loan amount
Bank of China Up to 95% of your credit limit 6.52%p.a. SGD 332 3% of the loan amount or SGD 150
Citibank Up to 4x monthly income 4.94%p.a. – 7.79%p.a. Lowest at SGD 214.92 3.5% of the loan amount
HSBC Up to 8x monthly salary 3.7% Lowest at SGD 149.88 SGD 88

 

What Makes It Stand Out Among Other Banks?

There is no doubt that the HSBC personal loan’s competitive rates that result in a lower total loan cost are its primary selling point. It is the most affordable personal loan in Singapore and even has the longest tenure. The bank caters to those who are looking for the cheapest offers. One only has to qualify and pass the necessary documents to enjoy the maximum amount upon approval.

 

Eligibility and Requirements

If you are interested to apply for a personal loan from HSBC here in Singapore, you must meet the following criteria:

  • At least 21 years old to 65 years old
  • Have at least SGD 30,000 of annual income (Singapore and permanent residents) and SGD 40,000 annual income if a foreign borrower with a valid employment pass
  • Singapore residents and permanent residents, as well as foreigners, can apply.

If you qualify, you can then proceed to prepare the following documents for submission to the bank:

  • Front and back copy of NRIC, Passport/ Employment Pass (if it applies)
  • Completed and signed Letter of Instruction
  • For salaried employees:
  • Electronic payslip for the past 3 months
  • Latest 6 months’ CPF statement (for Singaporeans and Permanent Residents)
  • Latest income tax statement
  • Financing note showing details on credit cards and other financial products
  • For self-employed or commission-based individuals:
  • Latest 12 months’ CPF statement (for Singaporeans and Permanent Residents)
  • Latest income tax statement (for the past 24 months)

 

How to Apply

To apply, you only have to follow these three quick steps, and you can get your personal loan in no time:

  1. Go to the HSBC site and fill their online application form.
  2. Submit the required documents.
  3. Wait for staff approval, and you can expect it disbursed in your account in no time.

If you currently do not have your own HSBC account, you will have to open one to avail of other benefits that can lower your loan costs. Opening an account can also be done online; click on their “Apply Now” button for the new account creation page on-site, and you’ll be redirected to the application form.

 

Some HSBC Personal Loan FAQs:

How can I get a personal loan from HSBC?

You may proceed to HSBC’s personal banking site and click on their online application process for your HSBC personal loan.

How long does HSBC take to approve a loan?

If you are an existing HSBC’s personal account holder, your HSBC personal loan will be available in your accounts immediately after loan approval. For new HSBC customers, however, the process can take up to five working days.

Which is the best personal loan in Singapore?

Questions about what the best personal loan offers here in Singapore have a relative answer. The best offers are the ones that can address your current need. Notice how the personal loan policies of different credit facilities have a certain issue they cater to. Whichever banking service menu addresses your need is your so-called “best personal loan in Singapore.”

If you want to get a personal loan here in Singapore, there are several options that you can choose from. When in a pinch, Singapore citizens can look for the right personal finance services that supplement their annual income. However, banking and finances can be intimidating, and for loans and other similar products, one should be very careful about which provider they will go for. Monthly repayments as instalment for products you have not fully understood can be detrimental to the family.

Singapore citizens can get the services of Loan Advisor for advice on how they can manage their loans and the monthly repayments involved. The team has researched cash disbursement policies, EIR, loan tenure, repayment methods, and approval of loans and other financing products for employed, self-employed, and commission-based employees. Your job is to choose from their pool of options after receiving their best legal advice for your current situation.

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