• Monthly Repayment: S$296

• Annual Interest Rate: 2.2%

• EIR: 4.0% p.a.

• Minimum Loan Amount: S$1,000

• Processing Fee: 1%

• Total Rewards: S$130

Minimum annual income

• S$30,000 for salaried employees who are Singapore Citizens and Permanent Residents

• S$40,000 for commissioned-based employees or self-employed Singapore Citizens and Permanent Residents

• S$60,000 for foreigners residing in Singapore

• Foreigners will also require an Employment Pass with at least 6 months validity for Personal Line of Credit loans, or 12 months validity for Instalment Plans

*Figures here are based on a loan of S$20,000 and retrieved from HSBC’s Personal Loan Calculator.

HSBC charges an annual fee of S$120 for their personal loans, which is waived for the first year of your loan's tenure. If you're behind on your loan repayments, a Late Payment Charge of S$120 will be applied. Also note that 2.5% of the redemption amount will be applied if you decide to repay your loan early. A processing fee of 1% (min. S$88) of the loan amount will be charged once your loan has been disbursed.

To qualify for an HSBC Personal Loan, you’ll need to meet the following criteria:

• Minimum annual income of S$30,000 for salaried Singapore Citizens or Permanent Residents

• Minimum annual income of S$40,000 for commission-based or self-employed Singapore Citizens or Permanent Residents

• Minimum annual income of S$60,000 and an Employment Pass with at least 6 months' validity for foreigners

Here are the mandatory documents you'll be required to provide:

• The front and back of your National Registration Identity Card (NRIC) 

• Notice of Assessment (NOA) and Central Provident Fund (CPF) Statement via Singpass Myinfo

• Last 3 months' computerised pay slips and bank statements detailing salary crediting, for those with a monthly income over S$7,400 

• You may also be required to submit proof of billing or correspondence address, where applicable

Foreigners wishing to apply for an HSBC Personal Loan should note that you’ll need to provide more documents, including your passport, Employment Pass or S Pass.

Competitive eligibility criteria

HSBC makes it easy for Singapore Citizens and Permanent Residents to qualify for a personal loan, thanks to a low minimum annual income of S$30,000. Though this requirement is slightly higher for commissioned-based and self-employed Singapore Citizens/PRs at S$40,000, it is still relatively manageable, especially when compared to the minimum annual income of S$60,000 that foreigners will need to qualify for a loan application.

Flexible loan amounts and tenures

Borrow and pay off your loan in a year, or stretch it over 7 years to make your monthly repayments more manageable. You can borrow as little as S$1,000 and as much as four times your monthly salary, if your annual income is between S$30,000 and S$119,999. You'll be able to borrow up to 8 times your monthly salary with a minimum annual income of S$120,000 or more.

Earn cashback on your personal loans

Want to earn up to 2% cashback on your personal loans? You'll need to borrow a minimum of S$10,000 over a period of at least 3 years from HSBC. This will net you 1% cashback from Year 3, 1.5% cashback from Years 4-5 and 2% cashback from Years 6-7. One last caveat: you'll also need to agree to receive marketing materials from HSBC. 

High annual income needed for higher credit limits

When it comes to assigning credit limits, banks have to assess the risk level of each applicant and determine their ability to repay. This usually results in big earners with lower perceived risks being assigned higher limits. In this instance, HSBC will only allow those earning S$120,000 or above annually to borrow up to 8 times their monthly salary. What this means is that everyone else in the S$30,000-119,999 annual income bracket will only be able to borrow up to 4 times their monthly salary.

High annual income requirement for foreigners

Foreigners hoping to sign up for an HSBC Personal Loan will need to clear the high annual income requirement of S$60,000. They will also need to provide additional documents for their loan application, including their passport, Employment Pass or S Pass. 

Early repayment and other fees

If you decide to repay your loan early, you'll be charged up to 2.5% of the redemption amount. Also applicable are the various fees that nobody ever hopes to encounter, such as late charges amounting to S$120 and an accelerated annual interest rate of up to 25.9% charged to those who go over their credit limit. 

• Foreigners with generous salary packages: If you are a foreigner with an annual income of S$60,000 or more, you'll be able to borrow up to 4 times your monthly salary over a period of 1 to 7 years. If you're planning on staying for the long haul in Singapore and need some time to iron out your finances, HSBC's personal loans can provide a significant financial buffer.

• Individuals looking for longer loan tenures: Longer loan tenures usually translate into heftier total repayments, but it's not all doom and gloom. Longer loan tenures also have the benefit of having smaller repayment sums, making repayment over a longer period of time more manageable. For this reason, individuals with cash flow stability issues may be able to benefit from HSBC's tenures of up to 7 years.

• Borrowers with high annual incomes: If you earn S$120,000 or above per year, you'll be able to borrow up to 8 times your monthly salary, versus the 4 times allotted to those in lower income brackets. You can manage your repayment over a period of 1 to 7 years, allowing you to maintain a greater degree of liquidity.

You can make your monthly repayments in a variety of convenient ways:

• ATM

• HSBC branches

• Cash Deposit Machines

• Online Banking

• AXS stations

• Cheque

There is no restriction on what you can use your personal loans for. You may choose to use the funds for:

• University tuition fees: With tuition at full-time university courses ranging between S$35,000 and S$120,000, it's no surprise that parents may need a little financial support to fund their children's education. With tenures between 1-7 years, HSBC's personal loans are more than adequate for helping to set aside some cash for university tuition fees.

• Urgent home repair work: Leaking or clogged pipes making your bathroom unusable? Soften the blow of urgent repair costs with a personal loan and get your trusted plumber in as soon as possible.

• Home renovations: The average bill for home renovations is in the low to mid five figures, with costs being significantly higher for resale flat renovations. If you're expecting to spend a chunk of cash on home improvement works, extra funds can buy you time until your financial situation stabilises.

• Unexpected medical bills: Taking out a personal loan is a quick way to finance urgent medical treatment until you've recovered enough to take charge of your personal finances again.

• Wedding expenses: Weddings in Singapore can burn a sizable hole in your pocket, up to the tune of S$30,000 to S$50,000. A personal loan can serve as a financial buffer as you settle into the next stage of your life. 

• Big-ticket purchases: Buying a new car or home signals a life milestone that comes with a hefty price tag. A personal loan can help you pay off your purchase faster if you have the financial discipline needed for making repayments on time.

• Funeral expenses: Funeral expenses due to an unexpected death can result in financial strain. A personal loan can provide you with some extra funds for managing your finances during this trying time. 

There are a few ways you can go about applying for a personal loan from HSBC.

1. Online application

You may apply online on HSBC's website or by clicking the button below for exclusive discounts.

2. SMS

You may apply by sending an SMS to 74722 with relevant information as detailed below, after which HSBC will contact you within 3 working days.

• For Personal Loans: PIP<space>NAME<space>12-digit Personal Line of Credit account number

• For Personal Line of Credit Loans: PLOC<space>NAME

3. Calling HSBC's hotline 

You may contact an HSBC representative at 1800 4722 669, who will take down your information and contact you within 3 working days.