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HSBC Bank Personal Loan Interest Rates

Interest Rate Comparison Tool

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Highlights

  • Sponsor your trip with a personal loan from HSBC Bank.
  • HSBC Bank is now offering highest loan amount on personal loans.

A personal loan from HSBC Bank can prove to be your best companion to fund your plans. If you plan to go on a trip this summer, you can apply for a personal loan at HSBC Bank. The loan amount ranges from INR 75,000 to INR 30 lakh which is not only enough for a small trip, but you can even plan a big international holiday with your family. But are you aware of the interest rates on HSBC personal loans? For more details and clarifications read the content below.

HSBC Bank Personal Loan Interest Rate Details 2024

In this page, we will delve into the different interest rates and other charges that can be applied to your personal loan offered by HSBC Bank. The bank offers interest rates starting at @9.99% p.a up to ₹30,00,000. Additionally, you can move your current personal loan from another bank to HSBC Bank with certain charges.

Particulars Details
Interest Rates Starting from 9.99%
Loan Amount INR 75,000 - INR 30 lakh
Repayment 6 months to 5 years

Advantages of HSBC Bank Personal Loan

Here are some advantages that can be beneficial while applying for a personal loan -

  • Low Interest Rate - With HSBC's affordable interest rates, you can lower your overall loan payment amount throughout the course of the loan. This lowers the total cost of borrowing, increasing the affordability of the loan.
     
  • No Security Needed - This indicates that the loan is unsecured, meaning you can obtain it without putting up collateral like your home or vehicle. Because your assets aren't in jeopardy if you can't repay the loan, this lowers the risk for you as the borrower.
     
  • Less Paperwork - HSBC wants to make the application process more efficient by requiring less paperwork and documents overall. This expedites and streamlines the loan application procedure.
     
  • Long Tenure - You can stretch out payments over a longer period, all because of the loan's long payback period. Your monthly payments may decrease as a result, which will facilitate easier money management.
     
  • Minimum Income Requirement - A minimum income criteria may be established by HSBC to qualify for the loan. Because of this, a wider spectrum of borrowers, including those with moderate income can apply for the loan.

These characteristics are intended to increase the loan's appeal and accessibility to a larger pool of possible borrowers.

Factors Affecting HSBC Bank Personal Loan Interest Rate

The factors that can affect your personal loan interest rates in many ways -

  • Income - A stronger ability to repay the loan is typically indicated by higher income, which could lead to a lower interest rate. On the other hand, since the bank may view reduced income as a bigger risk, it could result in a higher interest rate.
  • Employment History - Long-term employment stability with a respectable employer is seen favorably and may result in a reduced interest rate. Uncertainty may be indicated by frequent job changes or gaps in work, which could lead to a higher interest rate.
  • Existing Debt Obligations - Your debt-to-income ratio may rise if you have a lot of outstanding debt, which would indicate a bigger risk to the bank. An increase in interest rates may result from this. On the other hand, minimal current debt might support a lower interest rate.
  • Credit Score - A higher credit score can help you get a cheaper interest rate because it usually denotes sound financial management and a low default risk. A lower credit score could be an indication of more risk, which would raise the interest rate.

Calculating EMIs on HSBC Bank Personal Loans at Different Interest Rates

To quickly and simply calculate your EMIs for a personal loan from the HSBC Bank, use the Wishfin online HSBC Personal Loan EMI Calculator.

You can simply put the following details -

  • Loan Amount
  • Tenure
  • Interest Rate

The equal monthly payments (EMIs) for a ₹4,00,000 personal loan with an interest rate of 9.99%  per annum for terms of one to five years are shown in the table below. To better meet your needs, you can modify the loan amount and other information.

Tenure (In Years)

EMI (at 9.99% interest rate)

EMI (at 15% interest rate)

1

₹26,373.37

₹36,103.32

2

₹13,842.09

₹19,394.66

3

₹9,678.75

₹13,866.13

4

₹7,607.33

₹11,132.30

5

₹6,372.64

₹9,515.97

What Should You Do in Order to Fetch the Lowest Interest Rate from HSBC Bank?

You can get a low-interest deal from HSBC Bank if you bear the following points in mind:

  • Improve Your Credit Score: A high credit score indicates that you are creditworthy. You should check your credit score before applying for a personal loan. If your credit score is less than 750, you should look for ways to improve it. 
  • Keep an Eye Out for Offers: During holidays, banks and other financial institutions typically provide special interest rates for a certain period. You might be eligible for a lower interest rate if you apply for a loan during the duration of this offer.
  • Avoid Missing Repayments: Your credit score could be negatively impacted if you default on a loan or credit card payment. Lenders typically consider your past repayment behavior when determining the interest rates on personal loans. A lower interest rate is probably going to be applied to those who have paid their credit card bills and previous EMIs on time.
     
  • Negotiate with the Lender: You can bargain for the lowest interest rate if you are a current bank customer or if you have a good rapport with the loan provider. It is best to do this by sending the loan provider an official written request.

Documents Required for a Personal Loan from HSBC Bank

For Salaried Individual

Here are the documents which are listed below for the salaried individuals who are willing to apply for a personal loan from HSBC Bank -

  1. Complete the application form with the applicant's attestation.
  2. One recent passport-size photo.
  • Identification proof documents  -
  • A passport, voter ID card, permanent resident card, PAN card, government employee ID card, military ID card, ration card, Aadhaar card, or NREGA card.
     
  • Residence Proof -
  • Passports, Society Outgoing Bills, Voter ID cards, Gas bills, Electricity or Water Bills, Permanent Driver's Licenses, Government Employee ID cards, PAN cards, Defence ID cards, Ration cards, Aadhaar cards, or NREGA cards.
     
  • Age Proof - 
  • A passport, driver's license, PAN card, school transfer certificate, or birth certificate
  • Recent Salary slips and Form 166.
     
  • Statements of salary for the last three months.

For Self-employed Individuals

Here are the documents which are listed below for the self-employed individuals who are willing to apply for a personal loan from HSBC Bank -

  • The latest six months' bank statement of the applicant, audited financial statements or balance sheets, and income tax returns from the previous two years.

Other Charges of HSBC Bank Personal Loan

These are some additional fees and charges that apply to your personal loan charges -

Particulars

Details

Processing fee

Up to 2% of the loan amount

Foreclosure charges

2%-5% of the outstanding principal amount

What is the processing fee for personal loans?

On a personal loan, HSBC Bank has the processing fee of maximum 2% of the loan amount. The amount is deducted from the disbursed loan amount at the time of loan approval. You also have to pay the additional GST of 18% on this fee which altogether is a one-time payment.

What is the trick to get the lowest rate?

As such you can not push the lender to give you the desired rate. The fact is that the lender takes into account some factors based on which it approves the rate on a personal loan. The details considered include your age, monthly income, savings/investments, company category, credit history, any other loan EMI, and your relationship with the bank. The better your overall profile is, the higher is the possibility that you can get the lowest rate.

HSBC Bank Personal Loan Balance Transfer

You can use the balance transfer facility of HSBC Bank and save money on your existing loan. Before the transfer, you need to keep a few things in mind, the new interest rate must be lower than the current rate by at least 3%-4%. Also check how much is the balance transfer fee. See the example below to know how the transfer will work.

Example: If you have a personal loan of INR 6,99,000 at an interest rate of 17.00% per annum for 5 years. The loan has 2 years of its journey so far. If HSBC Bank offers you a balance transfer facility at a lower rate of 11.20% seeing your solid repayment track, how much will you save? Don’t fret, check the table below to know the same.

Particulars Details
Original Loan Amount INR 6,99,000
Interest Rate 17.00% per annum
Tenure 5 years
EMI @17.00% INR 17,372
Estimated Interest Outgo @17.00% INR 3,43,317
Interest Paid Till 2 Years INR 2,05,182
Outstanding Balance at the End of 2nd Year INR 4,87,254
EMI @11.20% for the Remaining 3 Years INR 15,998
Interest @11.20% Over 3 Years INR 88,683
Interest Paid Till Now + Interest Payable Over the Next 3 years INR 2,93,865
Estimated Savings in Terms of EMI INR 1,374
Estimated Savings in Terms of Interest Payment INR 49,452 (3,43,317 - 2,93,865)

Note: A nominal fee may be required by HSBC Bank to process your balance transfer request. Deduct that fee from the interest you are likely to save, as shown in the table above, to arrive at the resultant savings.

Compare Personal Loan Interest Rates from Different Banks

Below is a table showing the personal loan interest rates from various banks for 2024 to help you make the best choice.

Aditya Birla Personal Loan Interest Rates Axis Bank Personal Loan Interest Rates
Bajaj Finserv Personal Loan Interest Rates Bandhan Bank Personal Loan Interest Rates
Bank of Baroda Personal Loan Interest Rates Muthoot Finance Personal Loan Interest Rates
Bank of Maharashtra Personal Loan Interest Rates Canara Bank Personal Loan Interest Rates
Central Bank Of India Personal Loan Interest Rates DCB Bank Personal Loan Interest Rates
Federal Bank Personal Loan Interest Rates SMFG India Credit Personal Loan Interest Rates
HDFC Personal Loan Interest Rates Bank of India Personal Loan Interest Rates
ICICI Personal Loan Interest Rates IDBI Bank Personal Loan Interest Rates
IndusInd Bank Personal Loan Interest Rates IDFC First Bank Personal Loan Interest Rates
Karur Vysya Bank Personal Loan Interest Rates Kotak Bank Personal Loan Interest Rates
J&K Bank Personal Loan Interest Rates Nainital Bank Personal Loan Interest Rates
Punjab and Sind Bank Personal Loan Interest Rates SBI Personal Loan Interest Rates
Tata Capital Personal Loan Interest Rates YES Bank Personal Loan Interest Rates
PNB Personal Loan Interest Rates RBL Bank Personal Loan Interest Rates
Standard Chartered Bank Personal Loan Interest Rates Union Bank Personal Loan Interest Rates
UCO Bank Personal Loan Interest Rates Indian Bank Personal Loan Interest Rates

FREQUENTLY ASKED QUESTIONS

1. What is the personal loan interest rate of HSBC Bank? 

The personal loan interest rate of HSBC Bank starts from 9.99%. 

2. What is the processing fee for personal loans?

On a personal loan, HSBC Bank has a processing fee of a maximum of 2% of the loan amount. The amount is deducted from the disbursed loan amount at the time of loan approval. 

3. What is the trick to get the lowest personal interest rate?

Here are the factors that can help you lower your interest rate on the personal loan application, which includes - 

  • Raise your credit score.
  • On-time payments are the ideal approach to obtaining a personal loan with favorable terms.
  • Negotiate with the lender and ask them about the offers which could lower your interest rate.

4. Why choose a personal loan from HSBC Bank?

A personal loan from HSBC has a five-year maximum payback term. Customers can therefore select a variable tenure option that starts at 6, 12, 18, 24, 30, 36, 42, 48, 54, or 60 months.

5. What is the minimum credit score required to avail HSBC Personal Loan?

The cut-off credit score for HSBC personal loan applicants has not been disclosed. On the other hand, candidates who meet the minimum credit score requirement of 750 or higher are more likely to be approved for personal loans with cheaper interest rates.

6. What are the other terms and conditions of the HSBC personal loan interest rate?

Here are some other terms and conditions that are applied to the personal loan application - 

  • The customer's selected repayment period determines the interest rate for the personal loan.
  • For personal loans, borrowers have the option to pay back the loan early after it has been disbursed for a full year.
  • Every month, between the first and the fifteenth, is when the EMI is due. The EMI due date for personal loans disbursed between the first and fifteenth of the month will fall on the fifth of the subsequent calendar month. If personal loans are disbursed between the 15th and the 31st of the month, the following calendar month's 15th will be the EMI due date.

7. What is the maximum loan amount that HSBC Bank will grant?

Depending on their internal credit policy, HSBC Bank only provides personal loans up to Rs. 30 lakh to a limited number of clients and the starting range is from Rs. 75,000.

8. How do I contact HSBC for any queries or requests?

For HSBC Premier Debit Cards, please call 1800 266 3456/ 1800 120 4722 (Domestic) or +91-40-65118001/+91-22-71728001 (Overseas).

For HSBC Personal Banking Debit Cards, please call 1800 267 3456/1800 121 2208 (Domestic) & +91-40-65118002 / +91-22-71728002 (Overseas).

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