For understanding of HSBC Bank personal loans, let’s say you need £15,000 personal loan. And you apply with HSBC Bank for Personal Loan for a period of 5 years. You need to pay £271.21 on monthly basis for 60 months, together with interest (which is 3.3% example base) and principal amount. However, interest charged would be high; it depends on your individual financial circumstances and credit history. Rate of interest charge will vary depending on your loan period and amount. Which rate of interest would be charged on your loan amount will be calculated before start of contract (Explained Below). This Means you would know, the rate of interest charged on your loan amount before the start of contract. If you want to check how it applies to your required amount you can click here HSBC Bank loan calculator.
An individual can take loan amount ranging from £1,000 to £25,000. And period of loan would be 1 to 5 years for loan range from £1,000 to £15,000. period allowed for loan amount falling in the range of £15,000 to £25,000 is from 1 to 8 years. And rate APR charged on loan amount could vary from 3.3% minimum to 21.9% Maximum.
APR charging Mechanism By HSBC Bank Personal Loan
Annual Percentage Rate (APR): in APR rate nominal interest and other associated cost of loan like upfront fee is included. Which means APR give true cost and two banks personal loans should be compare on the base of APR not on nominal rate.
Here we will see how HSBC bank charge different APR on different loan amounts.
- When loan amount is between £1,000 to £2,950then APR would be 8% minimum.
- If someone take loan between £3,000 to £4,950the rate of APR charge would be 9% minimum.
- An individual need loan amount ranging from £5,000 to £6,950 then ARP will be 1% minimum.
- For loan amount £7,000 to £15,000 the APR would be 3.3% minimum this range of loan amount seems to be most economical for an individual borrower.
- Loan Amount falling between £15,000 to £25,000 would be charged with APR of 6.7% minimum.
Please don’t forget that rate of interest APR rate above mention is minimum and would increase depending on credit assessment. but the maximum APR that HSBC bank can charge on HSBC personal loan is 21.9%. bank will not charge above this limit.
- Offer loan for longer period: HSBC bank allows personal loan from 1 to 8 years for amount range of £15,000 to £25,000. This is facility compare to others banks in UK which mostly allow 7 years maximum.
- Immediate decision and Transfer for Existing Customers; where existing customer would get immediate decision on loan acceptance or rejection. And also, existing customer would receive money immediately when contract is signed. In contrast to no HSBC customer who will receive after 3 days of signing the contract.
- Offer free of charge over payments; if you want to reduce the interest payment and burden of loan. You can chose to repay partial amount and feel relaxed from interest.
- Facility to Top up the loan. HSBC bank offer facility to top up your existing loan and fulfill your needs.
Please read terms and conditions before applying for personal loan with HSBC Bank . You can compare with other bank such as M&S bank personal loan which will help you in decision.
Haley Hayward is an experienced writer at gblogo.com, where she’s credited with more than 200 articles covering everything from entrepreneurial stories to mental health at work.
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Haley holds a Master’s degree in English Literature from the University of Edinburgh, Scotland.