HSBC offers personal loans between £1,000 to £25,000 with repayment terms of 12 to 96 months for applicants who want to settle some debts, pay college fees or buy a vehicle. Therefore, HSBC will be the right banking place.
HSBC make it easy for customers out to apply for loan with straightforward procedures which can be done online, in a branch or on the phone.
For an applicant to be eligible for an HSBC personal loan, the applicant must be a UK resident and an account holder with the HSBC Bank. The applicant is also supposed to own a bank account with a Direct Debit facility and a retirement pension of £10,000 or more.
For personal loans, HSBC Banks offer exceptional representative Annual Percentage Rates (APR’s) starting from 3.3%. At the end of a customer’s loan term, and if he is an HSBC Advance customer, he may be eligible for a 10% cashback.
With a loan term and a loan of less than 60 repayments, the applicant could earn himself a 10% cashback on interest. As a customer, if the loan ends or the customer ends it early, the customer will not receive any money.
Based on a 60-month loan term application from HSBC of £7,500, a client will have a monthly repayment of £135.6, and with a representative APR of 3.3%, a total payable loan will be £8,136.3. A client would then be liable to receive £63.62 back if he is an Advance Customer. The above calculation shows how HSBC offer low APR’s.
HSBC also offers its customers a period where they will not have to pay any cash on the borrowed loan for an initial three months. It may also happen in January every year, and such an offer is known as repayment holidays. For this offer to work, a client will have to mention it when applying for loan, and this offer can’t be taken if a client is paying back a loan where less than six payments have been made. What should be known by the client is he/she will pay more interest overall with this repayment holiday.