Is HSBC Personal Line of Credits a perfect choice for you?
Lots of banks offer several financial products, and one of those is the personal line of credit. Many get interested in what will HSBC personal line of credit can offer.
Before you decide to apply, first, you have to review things about HSBC personal line of credit.
Know if this type of credit will fit your financial needs.
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Understanding Personal Line of Credit
There’s are many financial products you can avail yourself of from banks. That includes the Personal Lince of Credit, known as a revolving credit facility.
How does it work?
With this type of credit, you can borrow money over and over again up to its limit. You have to repay the utilised amount in fixed instalments, including the interest.
The amount replenishes to the account holder in every payment, less the interest and fees (if any).
What’s in HSBC Personal Line of Credit in Singapore?
HSBC Personal Line Credit Annual Fee
Among all banks operating in Singapore, HSBC Personal Line of Credit is one best option for the longer term. It’s an unsecured loan with an annual fee that you can get waive for one year.
In contrast, Revolution credit customers can waive two years or more of a yearly fee.
HSBC Personal Line of Credit Interest Rate
HSBC offers the lowest interest rate with an effective interest rate of 14%. Thus, making it the cheapest one compared to other banks with a 20% effective interest rate.
But here’s what you should bear in mind. HSBC personal line of credit is not for everybody.
HSBC Personal Line of Credit: Credit Limit
You may be able to state your preferred credit limit upon application. Yet, this will be subject to the Bank’sBank’s approval and review. You can also let the Bank decide on your credit limit.
Individuals with annual income between S$30,000 and S$120,000 will have their credit limits capped. The credit limit will be capped at four times their monthly income. Their basis will be your submitted income documents.
HSBC Personal Line of Credit can give you six times your monthly income or S$100,000, whichever is lower.
Based on the sample annual income mentioned, your credit limit can get lower. But there’ll be some adjustments when you start making payments on the account.
Use your available credit limit in your account and repay on time.
HSBC Personal Line of Credit Eligibility Criteria
Singaporeans, permanent residents, and foreigners who meet the eligibility need can apply for a personal line of credit in HSBC. The company considers you eligible if your 21 to 65 years old, earning a minimum annual income of S$30,000 or S$40,000.
Salaried individuals should at least earn S$30,000 annually. While self-employed or commissioned-based with at least an annual income of S$40,000.
For foreigners, they must have a minimum annual income of S$40,000. Also, they should provide an Employment Pass valid for six months.
HSBC Personal Line of Credit Requirements To Submit
First, you must fill out an application form when applying for a Personal Line of Credit. Other than the application form, you must submit the following documents:
For Salaried Individuals:
- A front and back photocopy of the National Registration Identity Card
- Submit your latest three months’ computerised payslips or your latest Notice of Assessment with your latest one months’ computerised payslip or your latest six months’ Central Provident Fund (CPF) statement.
For Self-Employed/Commissioned-Based people:
- A front and back photocopy of NRIC
- Your last two years’ Notice of Assessment
For Foreigner Individuals:
- A photocopy of your Passport’s first page showing all identification details
- An Employment Pass that is valid for one year
- Submit your latest three months’ computerised payslips or the latest Notice of Assessment with the latest one month’s computerised payslip or your latest six months’ CPF statement.
Please note: If any of these documents contained different addresses, proof of residential or mailing address is required.
Frequently Asked Questions in HSBC Personal Line of Credit
Are there any fees in HSBC Personal Line of Credit?
You need to be aware of a few costs before applying to HSBC’s line of credit. These fees are lower than how most banks charge their borrowers.
The good thing is HSBC charges the lowest annual fee of S$60 among other banks. The company also does not charge an over-limit fee.
You’ll get a monthly statement where your payment due date is shown. The monthly payments are usually calculated 22 days from your statement date. Note that you’ll get charged an annual fee of S$60 yearly. But it gets waived in the first year. While for the Premier customers, the annual fee gets waived forever.
A late charge is another fee that will cost you S$75 once you fail to repay on the due date. It’s best if you pay your loan on time and avoid unnecessary fee charges so you can enjoy your loan.
You can find some moneylenders who do not penalise their borrowers for late payments.
What are the repayment schemes of HSBC Personal Line of Credit?
Your monthly statement contains your transaction history, including your payment due dates. So always keep it in a safe file. Also, the calculation of your repayments is 22 days right from your statement dates.
HDBC’s repayment is flexible. Be sure to pay 3% of your outstanding balance or S$15, whichever is higher.
You can pay your line of credit in many ways. It depends on your preference. You can repay your credit through the following:
- HSBC branches
- Internet Banking
- Cash Deposit Machine
- AXS station
- SingPost branches or S.A.Ms
- Or through a cheque.
What benefits can you get from an HSBC Personal Line of Credit?
One of the most known benefits of a Personal Line of Credit is its flexibility. It is perfect to use, especially for considerable expenses. That could be either a medical bill or home renovations.
HSBC Personal Line of Credit is an unsecured loan, meaning there’s no need for collateral. Borrow money as much as you want. Be sure to repay it on time to save you from charges.
Upon approval of your credit account, HSBC will grant you a chequebook and a debit card. Use it to access your account anytime, anywhere, without any hassle.
All these benefits are free of charge. For further concerns, you can reach HSBC through their 24-hour phone banking service.
A Financial Solution For Ineligible Applicants
Lucky are those who meet the qualifications of HSBC. But, how about those who got declined from the application?
There are still ways you can get some financial help from the licensed moneylenders in Singapore.
HSBC is one of the banks offering the cheapest option. But don’t you know that moneylending companies are offering affordable personal loans?
It is safe to transact with a licensed moneylender. It’s because they follow the Moneylenders Act. It’s a law provided by Singapore’s government regulating the financial industry.
Moneylenders offer several instant cash loans. With their online loans services, you can apply and get approved in as fast as 24 hours. Additionally, such money lending companies offer flexible repayment terms.
Moneylenders ask borrowers with lesser requirements. You don’t need to submit many documents, unlike other financial institutions. That is one of the benefits you can get from a money lending company.
Licensed money lending company are more lenient compared to other financial entities. They even welcome zero-credit account holders and those who have low credit scores.
Another best thing about them is their loan officers listen to borrower’s concerns. They help them find a way to recover from their money problems.
If you’re looking for a reputable money lending company, Cash Mart Singapore will be your best option. If you want to know more, visit www.cashmart.com.sg.