HSBC is among the leading financial institutions in the country and it enjoys a strong global presence as well. The bank has a history of operations in Malaysia of over 100 years and offers its expertise in commercial banking, consumer banking, wealth management, and investment banking sectors. Among the personal credit facilities offered by HSBC, its line of personal financing is a popular and sought-after choice. The loan provides borrowers with the freedom to use the loan amount for any expense they might face. The easy application process and quick disbursal times makes it an ideal choice for those facing emergency expenses.
The interest rate for HSBC Personal Loan or Personal Overdraft is calculated as per the Base Rate (BR) of the bank i.e.
Interest Rate = BR + 2.06% (for HSBC Premier customers)
Interest Rate = BR + 4.06% ( for HSBC Advance customers)
Current BR is = 3.89% (effective at 1 February 2018)
Interest Rate for HSBC Premier customers = 5.95% p.a.
Interest Rate for HSBC Advance customers = 7.95% p.a.
The features and benefits of the HSBC Personal Overdraft is as follows:
HSBC offers one conventional personal loan product which is called the HSBC Personal Overdraft. This product offers borrowers a personal line of credit that they can use anytime they are facing fluctuations in their cash flow. The loan is a secured facility and the interest rate is charged on a variable basis. The interest is only charged on the amount utilised.
|Type of fee||Amount|
|Commitment fee||1% of the unutilised amount for facilities that have a credit limit of over RM250,000|
|Late payment charge||1% p.a. on the overdue instalments|
For a salaried employee:
For a variable income earner:
For a self-employed individual:
Online application: You can apply for the loan scheme from the official website of the bank. Go to the Apply Now tab that is reflected on the website and fill in all required details. The bank representatives will then contact your for further procedure.
Offline application: You can visit a nearest branch of the bank and submit an application form to the bank representatives.
Through HSBC Personal Overdraft, you can get a flexible access to standby credit whenever you need extra funding. The loan scheme also comes with competitive interest rates which makes it a worthy take.
If you have any queries regarding the scheme, you can reach to the bank officials on hotline: 1300-88-1388 (for local calls) and +063-8321-5400 (for international calls).
Q. How long does a salaried applicant have to be employed in order to qualify for the loan?
A. Salaried applicants are required to be in the service of their current employer for a minimum period of 3 months.
Q. What is a commitment fee?
A. A commitment fee is a fee charged on the remaining unutilised amount. For example, if the overdraft facility granted to a borrower has a limit of RM200,000 and the borrower utilises only RM150,000, then the interest charged is on the RM150,000 that is utilised and a commitment fee of 1% p.a. is charged on the unutilised amount, which in this case would be RM50,000.
Q. Is there a minimum or maximum tenure for the overdraft facility?
A. No. Borrowers do not have any minimum or maximum tenure with this facility. The facility will undergo an annual review when the borrower attains the age of 60.
Q. If a borrower has a limit of RM300,000 and has been making regular payments, can he/she acquire additional funds?
A. Yes. The overdraft facility is a revolving line of credit. This means that the borrower can withdraw funds that they have already repaid. If the borrower has a RM300,000 limit and has repaid RM175,000 of this already, then the borrower can withdraw the desired additional funds from the repaid RM175,000.
Q. Does the facility require a guarantor?
A. No. The facility only needs a collateral and does not require a guarantor.
Q. What is the minimum monthly amount a borrower must pay?
A. The borrower does not have any fixed monthly instalment to make and has to make a minimum monthly payment of the interest charged on the borrowed amount. The lack of a fixed monthly payment gives flexibility to the borrower and allows them to settle on a payment best suited for them to take care of the interest and the principal amount.
Apart from offering personal loan, HSBC Bank offers other products and services which includes: