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HSBC Personal Loan Review (2020)

Best for long term loan tenures

Pros:

  • One of the lowest interest rates in the market at 3.7% p.a.
  • Offers the longest loan tenure of up to 7 years
  • Lowest annual income eligibility for expats at S$40,000
  • 1-minute in-principle approval on loan applications

Cons:

  • Loan tenures of 6 and 7 years are only applicable to salaried employees
  • Loan amount of up to 8X of monthly salary is only applicable for income earners of S$120,000 and above
  • Overdue interest: 2.5% + prevailing interest on overdue amount
Summary of Product
Interest Rate: As low as 3.7% p.a (EIR 7% p.a)
Loan Tenures: Choice of 1 to 7 years
Max. Credit Limit: Up to 8X of monthly salary
Min. Loan Amount: S$5,000
Turnaround Time: 1-minute in-principle approval

Table of Content

Why should you choose HSBC Personal Loan?

Attractive interest rate from as low as 3.7% p.a (EIR 7% p.a)
Exclusively on SingSaver, HSBC offers a flat interest rate from as low as 3.7% p.a (EIR 7% p.a) for all eligible income earners of S$30,000 and above.  Here is the full summary of the interest rates for all tenures for HSBC Personal Loan.
Zero processing fees and 1-minute approval
The one-time processing fee charge of S$88 for online applications is waived for you. Upon the approval, you may get the cash disbursement as quickly as the next working day.
Upsized loan tenures and cap
HSBC Personal Loan is ideal for those who may require a larger loan to be serviced over a longer time horizon, while taking advantage of the low annual interest rate. Applicants earning between S$30,000 and S$120,000 can get up to 4X of monthly salary, whereas S$120,000 and above earners get up to 8X. 
Lowest income criteria for foreigners
Expats earning S$40,000 and above can qualify for the HSBC Personal Loan, with other banks’ minimum income criteria usually set at S$60,000. An employment pass with at least 12 months’ validity from the loan disbursement date is needed to be eligible for the loan. 

Who can apply?

Age Requirement 21 - 65 years old
Annual Income Requirement Singaporeans/PRs: S$30,000 Foreigners: S$40,000

What charges or fees should you look out for?

Processing fee S$0
Early Redemption fee 2.5% of redemption amount
Overdue Interest 2.5% + prevailing interest on overdue amount
Late Payment fee S$75 for each monthly repayment that is not received in full by due date

How to apply?

Once you have decided to take up for this loan, click on the “Apply Now” button and complete the application form on HSBC’s page. Note that you will need to prepare the following documents.
Salaried employees Last 3 months' computerised payslip; OR Latest Income Tax Notice of Assessment with latest 1 month's computerised payslip; OR latest 6 months' CPF statement (if Singaporean/PR)
Self-employed Last 2 years’ Notice of Assessment
All Applicants Front and back of NRIC/Passport/Employment Pass Completed and signed Letter of Instruction

Other Personal Loans for your consideration

HSBC Personal Loan not the right fit? You may consider the following personal loans:
Standard Chartered is offering 3.88% p.a (EIR from 7.63% p.a) for all loan amount and tenures. OCBC is offering a promotional rate of 5.8% p.a (EIR from 12.11% p.a)

Appendix: Summary of Interest Rate for all tenures

For all annual income earners
Loan Tenure Flat Interest Rate (p.a) Effective Interest Rate (p.a) Processing Fee Monthly Instalments
1 year 3.8% 7% S$0 S$1,730
2 years 3.7% 7% S$0 S$895
3 years 3.7% 7% S$0 S$617
4 years 3.7% 7% S$0 S$478
5 years 3.8% 7% S$0 S$397
6 years 3.8% 7% S$0 S$341
7 years 3.8% 7% S$0 S$301
*Note that the above monthly repayment is based on the calculation of S$20,000 loan amount, unless otherwise stated.
Looking for other personal loans? Check out the Best Personal Loans in Singapore 2020.