Commonly Asked Questions in HSBC Business Loan
Throughout the years, HSBC has been serviced with a good reputation. It helped individuals, Small businesses, and highly limited companies in Singapore. So, if you’re a business person who seeks financial help to support your business, HSBC can help.
Here are the commonly asked questions about the HSBC Business Loan in Singapore. Read up and learn more about what HSBC can offer you on business loans.
How to use the HSBC loan calculator
The HSBC loan calculator is a helpful tool for getting figures about your loan. It is a quick and instant way to calculate figures. For example, you will enter your minimum gross annual income and values, such as interest rates.
Rates will be displayed by term or annually.
The loan calculator will also provide a summary of your repayments. Included is the maximum amount you can borrow and your total interest payable.
But take note that the calculation provided is for illustrative purposes only. It will give you an idea of how much you can borrow. You should not rely on this calculator solely. Always consult the bank before making individual decisions. Interest rates are also subject to change.
What is the interest rate for HSBC Business Loan?
HSBC offers Personal Loans and Investment Financing, which you can use for starting a business. HSBC offers low interest rates. You can loan up to 8 times your monthly income for personal loans.
You can also choose a fixed or flexible repayment system. Rates are affordable, but banks still have a higher interest rate than licensed money lenders. You can also access extra cash via debit card and online banking. The interest rate for Personal Loans is 3.4%.
For investment financing, you can maximise your financial flexibility. There are also no minimum monthly repayments. Repayments are flexible, but banks offer higher interest rates. For this type of loan, there is no minimum income requirement.
You can also have a 50% to 100% Maximum Advance Ratio. Maximum Advance Ratio is the maximum value percentage HSBC will lend you. It can be an attractive offer, but be mindful of the interest rates that may occur.
If you fail to pay your monthly repayments on time, your interest rates will get higher and higher. Longer repayment schemes will also cause you to pay a lot more money than your loan’s actual cost.
If you want to maximise your spending power, consider all the options in getting your Business loan. First, try looking for a licensed moneylender offering lower interest rates than banks. Then, you can look through the official list of Registry of Moneylenders in the Ministry of Law Singapore. All listed lenders abide by the Moneylenders Act, so you don’t have to worry about its legitimacy.
Things you need to know about monthly repayments
Your monthly repayment will depend on the approved amount of your loan. The outstanding balance of your loan will be the basis for the interest to be paid. It can be a little bit bigger as bank interest rates are higher. You’ll get your loan schedule and disclosure statement upon your loan drawdown.
Several repayment methods are available in HSBC Business Loan, including the Straight-Line Scheme. HSBC uses such a scheme when calculating monthly amortisation. As a result, the monthly amortisation given to you will be fixed, allowing you to plan and manage your monthly cash flows.
Reducing Balance Scheme
In the Reducing Balance Scheme, you can get more savings on your interest payments. It is because the principal part of your payment is paid off faster at the earlier stages of your loan. You can also get more savings on your interest payment with this scheme.
Always remember that there is always a borrowing cost. The bank will always charge you the interest you pay for the loan. The interest will be higher if you pay your monthly repayments longer. So always consider the monthly payment of the line of credit before taking one.
Take note that you need to have a stable source of income. You should also have enough savings to finance the loan.
Also, failure to pay your loan can hurt your credit score. It will not help you if you plan on taking another loan. All you are doing is increasing your debt over the years, and that’ll not allow you to get your finances in order.
As much as possible, have some money set aside for the future. Whenever you have extra money, make sure to set it aside for emergency purposes.
If you want to start a business without using your savings, you can choose to get financial help from a reputable licensed moneylender. They, too, offer business loans with flexible payment terms like banks.
They also offer lower interest rates than most banks offer. Approval of loans is also effortless. You can apply within the day and get approved within a few hours.
What are the term loans for HSBC Business Loan?
With an HSBC business loan, you have options on how you can manage your repayments. Here is how.
HSBC Personal Line of Credit
You can choose to apply for an HSBC Personal Line of Credit. This personal line of credit has affordable interest rates as low as 12% annually.
Also, you can get a credit limit of up to $200,000 with flexible monthly repayments. You get quick access to cash through debit cards and internet banking. Interest rates are affordable.
But, there are still a lot of licensed moneylenders that offer lower interest rates. So, weigh your options before deciding which loan you would choose.
You must meet the following requirements to qualify for this Personal Line of Credit. Applicants must be at least 21 up to 65 years of age. Also, your annual income must be S$ 30,000 for salaried individuals.
For self-employed individuals, your minimum income must be S$40,000. But if you are a foreigner, you must have an employment pass with a minimum annual income of S$40,000. Furthermore, the said employment pass must be valid for at least six months.
Personal Line of Credit Balance Transfer
HSBC also offers a Personal Line of Credit Balance Transfer, offering two repayment periods. The two repayment periods are six months and 12 months. So again, you can choose which is more applicable to you. But be aware that the longer the repayment period, the higher the interest rates will be.
The Effective Interest Rate of this Personal Line of Credit is calculated based on an approved balance transfer. So, the interest rates are subject to change if the monthly dues are not paid in full.
HSBC also has a Personal Line of Credit Installment Plan. You can get an approved loan amount of $20,000.
HSBC will also offer a 1% cashback when you choose this option. This line of credit has interest rates as low as 3.4%. But if you fail to settle on the due date, it’ll blow up your repayments.
There are a couple of features and benefits offered by HSBC. You don’t need to submit any supporting documents. Also, you’ll get options for your fixed monthly repayments with a choice of tenor between one to seven years.
The available credit limit can be reinstated upon monthly payment. There is also a processing fee of 1%. Early repayment fees are also charged 2.5% of the redemption amount.
Starting a business is not an easy road. Remember that your first step is the most crucial part. Providing for your business fund must be thoroughly decided.
Consider every option offered by banks and licensed moneylenders. Be vigilant on fees written on the contract. Make sure that you understand all payment options before applying for a loan. It will help your business thrive and save you from having enormous amounts of debt.
Digital Banking: The paper-less way to do banking transactions
“Enough with the long queues and waiting time.”
Way before, we do banking transactions manually. For example, you go to the office and apply for a savings account. You talk with staff to guide you throughout the process. And so on.
But things nowadays are different. Corporations are transitioning to paperless work, where they do banking digitally. Instead of going to the bank’s physical office, you visit them through their website.
The process is still the same. However, the difference is that you don’t talk face-to-face with a bank’s staff. You only have to read instructions and follow them.
With this kind of technological advancement, things became more convenient. It’s not only banks that are adopting the digital platform.
Almost all entities, including reputable licensed moneylenders, are embracing such adaptation. You get to apply for an account or take instant cash loans like low-interest personal loans, which are so easy. Finish the process in less than 10 minutes.
Many are still hesitant about doing digital banking transactions. People fear that their data will leak and be used by illegal users. That said, the Ministry of Law Singapore (MinLaw) regulated the whole financial industry.
If you want to know if such a bank or money lending institution is legal, visit MinLaw’s site. But first, search for the official list of financial entities. It’s the easiest way to determine legal institutions.
All listed entity obeys the law. All data they get are under the protection of the government. So you do not need to doubt about doing bank transactions digitally.
Ready to leap into digital banking? All you need is a laptop, desktop, or even your mobile phone, plus an internet connection. That’s simple and easy!