Commonly Asked Questions in HSBC Business Loan
Throughout the years, HSBC serviced with a good reputation. It helped not only individuals but also Small businesses and high 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
HSBC loan calculator is a helpful tool to get 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. For personal loans, you can loan up to 8 times your monthly income.
You can also choose a fixed or flexible repayment system. Rates are affordable, but banks still have a higher interest rate compared to 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 that HSBC is willing to 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 tremendous amount of money than the actual cost of your loan.
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 in 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 be depending 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 interest rates from banks are higher. Upon your loan drawdown, you’ll get your loan schedule and disclosure statement.
A couple of repayment methods are available in HSBC Business Loan, which includes 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.
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 that you pay for the loan. The interest will be higher if it will take you longer to pay your monthly repayments. 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 that can 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 in the future. All you are doing is increasing your debt over the years 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 emergencies 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 in just a couple of hours.
What are the term loans for HSBC Business Loan?
You can choose to apply for 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 S$200,000 with flexible monthly repayments. You get quick access to cash through debit card and internet banking. Interest rates are affordable.
But, there are still a lot of licensed moneylenders that offer lower interest rates. So, make sure to weigh your options before deciding which loan you would choose.
You must meet the following requirements to be eligible for this Personal Line of Credit. Applicants must be at least 21 up to 65 years of age. Also, your annual income must be S$ 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 have a validity of at least six months.
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 S$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 not 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.
How does ANZ Time Deposit work?
When investing in Time Deposit, you’ll need to choose how much money will you put in. Please think of how long you want to keep it until it matures and how often you wish to receive the interest.
You may even want to know how you wish to receive interest payments. If you have already decided, you can now access your account using ANZ Internet Banking.
ANZ Internet Banking is a tool you can use to view or change where you want to receive the payments. At the end of the term, the bank will either pay the balance of your term deposit or re-invest. Re-investing will only apply if you haven’t informed them what you want to do with your funds.
Getting a Time Deposit account is beneficial. You get to enjoy the security of a fixed rate of interest. You can enjoy this over the investment term of your choice.
The options you’ll get about the length of terms is from seven days to five years. You can receive the interest payments depending on how often you want to. It could be monthly, quarterly, semi-annual or annually.
You must have an existing ANZ everyday account when you get a time deposit account. ANZ savings account would count as well.
Please note that Time Deposit doesn’t have monthly service fees. But there’ll be a minimum deposit. If you’re new to ANZ, going to a bank branch would necessary. Speak with their staff to guide you and further help you if you have any concerns.
Overview of ANZ Bank SG
In 1974, established is the bank of ANZ Singapore. Over the years, the company built a significant development in the country. Thus, it carries its vision to provide trade and cash flows to customers.
Customers developed a bond with ANZ Singapore. Even to Australia and New Zealand markets. The company made history in Asia, especially in Singapore. With its quality of products and services, ANZ ranked as a top-5 corporate bank by Greenwich.
Along the way, customers developed a bond with ANZ Singapore. Thus, making ANZ Singapore a vital part of ANZ’s Institutional banking strategy.
Additionally, the company was able to connect our customers’ domestic requirements. It made possible with the help of the 33 markets across the Asia Pacific. Such demands got developed in Australia and New Zealand. That also include great countries like Europe, America and the Middle East.
What’s more to ANZ Singapore?
There is a wide range of products under ANZ’s institutional and corporates customers. In which, ANZ Singapore became home to our main markets outside Australia. They keep focusing on strategies, improving the financial well-being of our customers. They ensure that they have the right people who listen, learn and adapt.
Also, the company puts the best tools and insights into their hands. Then, they focus on those crucial things that add value to customers by doing them right the first time.
The company believes that delivering strategy will provide decent returns for shareholders. Thus, it lets them achieve a balance between growth and returns.
The team put all efforts to make their vision into reality. They strive to build a more straightforward yet, better-balanced bank. Yet, even during this information era where we are right now, ANZ continues to compete.
In doing business, the company continued to serve citizens. However, it is the driving purpose and values-led transformation that keeps them move forward.
Moreover, ANZ Singapore ensures to development of new services. That includes a wide range of distribution options. Also, they develop new initiatives to enhance homeowners and small business owners.
ANZ aims to create an integrated trade and cash and markets experience within our institutional business. It is made through while developing and scaling our capabilities. This strategy produced a significant improvement for ANZ over the past four years. And that strengthen its balance sheet and improve its culture.
Also, they simplified and rebuilt its people’s capabilities. That said, ANZ was able to reduce the costs and risks associated with running the bank.
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 make time to 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. Corporates 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. Though the difference is you don’t have a face-to-face talk 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 so easy. Finish the process in less than 10 minutes.
Many are still hesitant of doing digital banking transaction. People fear that their data will leak and 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, you can 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 there’s no need for you to doubt about doing bank transactions digitally.
Ready to leap into digital banking? All you need to have is laptops, desktop, or even your mobile phones, plus an internet connection. That’s simple and easy!