Overview
Currently, HSBC offers personal loans to only its existing resident customers possessing HSBC saving account, current account, salary account, or employed with selected corporates. It avails funds starting from Rs. 75,000 to as high as Rs. 30 Lacs within 2 weeks and you can choose a tenure ranging from to repay your loan ranging from 6, 12, 18, 24, 30, 36, 42, 48, 54, or 60 months to repay the loan amount. The processing fee charged by the bank is up to 2.5% of the loan amount.
The annual interest rate charged by HSBC Bank is ranging from 10.99% to up to 17.84% and the Prepayment fee charged by HSBC Bank is up to 3.75% of Principal Outstanding which is allowed only after your first 12 months or 1 Year of loan disbursement. The part-payment charges are up to 3% of the outstanding amount and Rs. 350 as an EMI Bounce Charges. The penal interest rate charged by the bank is 2% over the existing rate, plus Rs. 250 for each late payment whereas charges Rs. 250 as a cheque swapping fee. Transfer of any existing personal loan from another bank in India is available in the case of HSBC Bank. you can apply for this type of loan without any collateral or guarantor.
HSBC Bank is a good fit for you if?
Have Annual Income of Rs. 4 Lacs
Before applying for a loan from HSBC Bank, you must know that this Bank does not avail loans for applicants who are having an annual income of more than Rs. 4 Lacs. Your minimum net annual income must be Rs. 4 Lacs and above for corporate employee programs and Rs. 5 Lacs and above for other customers.
If You’re looking for a loan amount of Rs. 75,000 or above
If you are looking to borrow a loan of Rs. 75,000 or above, then HSBC Bank could be a good fit for you since the interest rate charged by this bank starts as low as 10.99% per annum and you are allowed to repay your loan within a tenure of 6 months to up to a maximum of 60 months or 5 years which is quite a long period.
HSBC Bank Personal Loan at a glance
| Annual Interest Rate | 10.99% – 17.84% per annum |
| Loan Term | 6 Months – 60 Months |
| Loan Amount | Up to Rs. 30 Lacs |
| Time of Funding | Within 2 weeks |
| Pre-Closure Charges | Up to 3.75% of Principal Outstanding Allowed only after first 12 months of loan disbursement |
HSBC Bank offers a personal loan to up to a maximum of Rs. 30 Lacs within 2 weeks and to tenure to repay your loan amount is ranging from 6 months to as long as 60 months. The annual interest rate charged by the bank is ranging from 10.99% to up to a maximum of 17.84% as compared to other competing banks such as Axis Bank which charges an interest rate ranging from 15.5% to as high as 24% which is a high amount. While the pre-payment charges are up to 3.75% of principal outstanding which is allowed only after the first 12 months of the loan disbursement.
Why Choose HSBC Bank?
Part-Payment Allowed
If you are having a lump sum amount and want to pay off your debts in advance then, HSBC Bank offers you the facility of part-payment of funds unlike many other competing banks or financial institutions in which Part-Payment is not allowed. So you can avail your personal loan from HSBC Bank.
Offers 30 Days Service Pledge
HSBC Bank offers you a 30 days service pledge period where you can decide whether you need a loan from the bank or not. If you have changed your mind and decided not to avail loan then within a tenure of 30 days of purchase you have to call them or send them a mail for the same without paying any penalty or charges.
Personal Loan with minimum 6 months tenure
If you want a small amount of money for your loan and want to repay it within a short period without paying much interest rates then availing loan from HSBC would be a good choice for you as it can lend a loan for a tenure of as low as 6 months.
What to watch out for?
Prepayment Allowed after first 12 months
If you want the settlement of your debt or want to pay off your debt before its official due date then you must know that the pre-payment can only be made after the repayment of your first 12 EMIs.
Partial Disbursal of Loan isn’t Allowed
If you are availing of a personal loan from HSBC Bank then your payment will not be done in stages or you can say partial disbursement is not allowed which could be an issue for you if you need funds in parts as compared to other banks or financial institutions which allows you to disburse your payments slowly, as the construction process.
30 Day Service Pledge isn’t offered on Top-up Loans
If you have applied for a personal loan from HSBC Bank but have changed your mind and decided not to purchase this loan then, within 30 days, you can invoke the services pledged but this service is only offered on regular loans, not offered on top-up loans.
Disbursal can take up to 15 days
If you have an urgent requirement of funds and can not wait for a long time, then availing loan from HSBC Bank could not be a good alternative for you as you will have to wait for 15 days after approval unlike other competing Banks or financial institutions who disburse the loan amount in a quick time span such as HDFC Bank which lends funds within 4 hours of approval and Citi Bank which provides funds within 48 hours of approval of the loan.
Offered only to existing customers
This is a drawback of HSBC Bank that it offers personal loans only to its existing customers. Hence, if you do not have any existing relationship with the bank such as a saving account, current account, salary account, or any other relationship, then you are not allowed to avail loan from this bank.
Available at Selected Locations
HSBC Bank currently offers personal loans in the following Indian cities only. Hence, if you want to avail funds from HSBC Bank, then you must be located in the following cities – Mumbai, Delhi, Pune, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Jaipur, Chandigarh, Chennai, and Cochin.
Compare HSBC Bank Personal Loans to Other Banks
| Bank Name | HSBC Bank | Citibank | Standard Chartered |
| APR | 10.99% – 17.84% | 10.99% – 17.99% | 11.99% – 14.49% |
| Loan Term | 6 Months – 60 Months | 12 Months – 60 Months | 12 Months – 60 Months |
| Maximum Lending Amount | Rs. 30 Lacs | Rs. 30 Lacs | Rs. 30 Lacs |
| Processing Fee | Up to 2.5% of the loan amount | Within 48 hours of Approval | Zero to upto 2.25% of the loan amount 50% off on online application |
| Time to Funding | Within 15 days | Within 7 days | Within 7 days |
| Pre-Closure Fee | Up to 3.75% of Principal Outstanding | Up to 4% on total principal outstanding | 1% – 5% of the Principal Outstanding |
Comparing the offerings or fees of banks with other competing banks is the best way to select the bank for your preferred loan. The maximum lending amount offered by HSBC is Rs. 30 Lacs within 15 days of approval, while Citi Bank offers a maximum of Rs 30 Lacs within 48 hours of approval, and Standard Chartered Bank can lend a maximum of Rs. 30 Lacs within 4 to 7 working days. The processing fee charged by HSBC bank is up to 2.5% of the loan amount while in the case of Citi Bank, it charges 0.25% to up to 3% of the loan amount and in the case of Standard Chartered, it charges zero to up to 2.25% of the loan amount and 50% off if you are applying for a personal loan from the online application.
The typical APR charged by HSBC is ranging from 10.99% to up to a maximum of 17.84% and in the case of Citi Bank, it charges 10.99% to up to a maximum of 17.99% while charges 11.99% to up to maximum of 14.49% in case of Standard Chartered Bank. Now, coming to the pre-closure part, HSBC charges up to 3.75% of the principal outstanding, up to 4% on total principal outstanding, and charges 1% to up to maximum of 5% of the principal amount as Pre-closure charges in case of Standard Chartered Bank.
HSBC Bank Personal Loan Eligibility Criteria
| Minimum Age | 21 Years |
| Maximum Age | 58 Years (for Salaried) 65 Years (for Self-Employed) |
| Minimum Net-Annual Income | Rs. 4 to 5 Lacs |
- Age of the applicant should be minimum 21 years to 58 years in case of Salaried Person and 21 years to 65 years in case Self-Employed applicant.
- Applicant working in a Corporate Company should have a minimum net annual income of Rs. 4 Lacs. In case of employee of Non-corporate company/institutions, applicant should have a minimum net annual income of Rs. 5 Lacs.
- Applicants must be an existing customer of HSBC Bank or employed with selected corporates, to be eligible for personal loan.
- Applicant should be a permanent resident of the following Indian cities – Mumbai, Delhi, Pune, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Jaipur, Chandigarh, Chennai and Cochin only.
HSBC Bank Personal Loans Schemes
HSBC Bank Personal Loan
HSBC Bank offers you funds for a personal loan with a minimum of Rs. 75,000 to up to a maximum of Rs. 15 Lacs usually and up to Rs. 30 Lacs for selected customers as per the Bank’s internal credit policy. The tenure to repay your loan is ranging from 6 months to as long as 60 months with a fixed interest rate. The interest rate is ranging from 10.99% per annum to up to 17.5% per annum which is occurred on daily basis. The processing fees charged by the bank are up to 2.5% of the loan amount or a maximum of Rs. 2499. HSBC Bank offers personal loans to the only existing resident customer who is holding HSBC Liability Accounts, Credit Cards, Home Loan, or employed with selected corporates.
Documents for Salaried
- Latest salary slip showing statutory deductions OR Form 16 (Declaration from employer giving details of income and deductions, duly signed by an authorized signatory of the company).
- Last 3 Months’ Salary account statements.
- Personal Loan Application along with a Passport Sized Photograph and KYC Details.
Documents for Self-Employed
- Audited / Certified Financials (P&L account and Balance Sheet).
- Last 2 Years’ IT returns
- Last 6 months Bank statement of the primary account.
- Personal Loan Application along with a Passport Sized Photograph and KYC Details
HSBC Bank Personal Loan Interest Rates
| Personal Loan | Applicable Interest Rate |
| HSBC Bank Personal Loan | 10.99% – 17.5% per annum |
The applicable interest rate charged by HSBC Bank is ranging from 10.99% to up to 17.5% per annum as compared to competing banks or financial institutions which charges a high-interest rate such as Standard Chartered Bank which charges 11.99% to up to a maximum of 14.49% per annum and ICICI which charges 15.5% to up to a maximum of 24% per annum.
HSBC Bank Personal Loans Fees & Charges
| Type of Charges | Applicable Charge |
| Processing Charges | Up to 2.5% of the loan amount |
| Prepayment Charges | Up to 3 % of the outstanding amount |
| Part-payment | Up to 3 % of the outstanding amount |
| Penal Interest | 2% over the existing interest rate, plus Rs. 250 for each late payment. |
| EMI Bounce Charges | Rs. 350 |
| Cheque Swapping Charges | Rs. 250 |
The processing fee charged by HSBC Bank is up to 2.5% of the loan amount and the foreclosure charges are up to 3% of the outstanding amount which is quite a high amount as compared to other competing banks or financial institutions such as Axis Bank which does not charge any foreclosure fee. The part-payment charges are up to 3% of the outstanding expenses and the part payment fee charged by the bank is also up to 3% of the outstanding amount. It charges Rs. 350 as EMI Bounce charges.
Now coming to the penal interest rate, HSBC Bank charges a fee which is 2% over the existing interest rate, plus Rs. 250 for each late payment, which is quite reasonable as compared to other banks such as Aditya Birla Capital which charges 24% per annum or 2% per month on the overdue amount. It charges Rs. 250 as a cheque swapping fee.
After I Applied?
Check Loan Status through Customer Care
- Dial 1860-266-2667 from your registered mobile number.
- Press 1 for English or Press 2 for Hindi
- Now, press 2 and wait for your call to connect with the customer care executive of HSBC Bank.
FAQs
What is the process to make the service pledge request to the HSBC Bank?
You can call Phone Banking or you can mail on info@hsbc.co.in or you can submit your written request for a loan foreclosure at any HSBC India Branch within 30 calendar days of the disbursal date. You must mention that the foreclosure letter is required under the service pledge along with reason. The bank will forward your foreclosure letter at your correspondence address in bank records within 5 days of receipt of your request.
Within 15 calendar days of the issuance of the foreclosure letter late, you need to ensure that the outstanding amount is repaid and the service pledged request form duly signed by all the borrowers, is handed over at any of your nearest branches of HSBC. Any promotional gift offers or vouchers are needed to be surrendered to the bank along with the request.
How long can I take to repay my HSBC Personal Loan?
HSBC Bank currently offers a loan period of minimum 6 months to maximum period of 5 years. You can choose the loan period as per your suitability from the tenure ranges of 6 Months, 12 Months, 24 Months, 30 Months, 36 Months, 42 Months, 48 Months, 54 Months and 60 Months.
What is the EMI Due date for my HSBC Personal Loan?
HSBC Bank currently offers 2 different dates as per the date of loan disbursement. The loan disbursed between the date of 1st to 15th of any month will have a fixed payment due date of 5th, starting from the next month.
And, the loan disbursed between the date of 16th to 31st of any month, will have a fixed payment due date of 15th, starting from the next month.
How much would HSBC Bank would charge on late payment of the Monthly EMI?
HSBC currently charges a penalty of 2% per month over the applicable interest rate. Additionally, a fee of RS. 250 will be charged for each late payment.
When can I pre-close my HSBC Personal Loan?
You can pre-close your loan anytime after 12 months from the date of loan disbursal by paying a fee of up to 3.75% of the principal outstanding.