HSBC Loans

...know quite a lot about!!!! HSBC Loans.

HSBC offer several ways of borrowing money, I'm going to talk to you today about the personal loan.

SOME BASIC FACTS

An HSBC personal loan is a good idea if you want fixed monthly repayments and you know exactly how much you want to borrow.
You can borrow any amount between £1000 and a whopping £25,000.
As I said the repayments are fixed which basically ...
...of 8 years.
An HSBC personal loan can be agreed for any purpose, and if you are accepted the money can be in your account with half an hour.


WHY CHOOSE HSBC?

But why choose HSBC I here you say. Plenty of other companies offer personal loans, some are even cheaper than HSBC.
Well HSBC is the largest high street bank in the UK, (actually the second biggest bank in the world!!!!!), which means they ... more

I haven't wrote a review on Ciao for quite some time, so to get back into the swing of it, I thought I'd write about something I know quite a lot about!!!! HSBC Loans.

HSBC offer several ways of borrowing money, I'm going to talk to you today about the personal loan.

SOME BASIC FACTS

An HSBC personal loan is a good idea if you want fixed monthly repayments and you know exactly how much you want to borrow.
You can borrow any amount between £1000 and a whopping £25,000.
As I said the repayments are fixed which basically means you will pay the same amount back each month for the period of the loan.
Loans between £1000 and £15,000 can be taken over any period between 1 and 5 years. Loans over £15,000 can be taken over a maximum of 8 years.
An HSBC personal loan can be agreed for any purpose, and if you are accepted the money can be in your account with half an hour.

WHY CHOOSE HSBC?

But why choose HSBC I here you say. Plenty of other companies offer personal loans, some are even cheaper than HSBC.
Well HSBC is the largest high street bank in the UK, (actually the second biggest bank in the world!!!!!), which means they are a reputable company with a good reputation. With branches on most high streets you can call in at any time if you have any questions or queries. I have served many customers over the last four years that have been offered a better deal from an internet bank or a telephone offer an they have still chosen to take the HSBC loan. When I have asked the question WHY, they have all answered the same. Sometimes the cheapest deal is not always the best, and at least they know if there are ever any problems, they have got a person to refer to rather than the hand set of a telephone.

HSBC can arrange for the repayments to be taken on a date of your chose. For example you could choose your loan payments to come out on the day that you get paid so you dont even notice the money has gone.

The first payment is normally taken out the month after the personal loan has been set up, although there is also an option to take a repayment holiday at the beginning of the loan, and not make a payment for the first three months.

HOW DO I APPLY?

There are several options here.
You can visit a branch where you will normally get an answer on the spot and the money transferred into your account straight away.
If you are already a customer with HSBC and are registered with internet banking you can apply on line at www.HSBC.co.uk where again you will usually get an instant decision. To sign for the loan once it has been agreed on the internet you can either visit your local branch or you can have the loan agreement forms sent out to your address. If you choose to sign the forms at your local branch then the money can be put into your account straight away. If you choose to have the forms sent out to your address to sign it will take slightly longer for you to get the money.
Loans can also be agreed over the telephone 08457 404 404. The same principle applies as with internet banking. The forms can either be signed at your local branch or they can be sent out to your home address.

I would recommend that if you are going to visit a branch to apply for your loan you take some identification with you ( e.g. passport or driving licence). Also if you are not a customer with HSBC already they will need to see your last months bank statements with your current bank or building society. This will help speed up the process.

WHAT IF I CAN'T WORK, HOW WILL I REPAY MY LOAN?

No need to worry HSBC offers a Personal loan protection plan, which covers you against unemployment, accident, sickness, disability and death.
Those who are over 18 under 65, work more than 16 hours a week and are a resident in the UK are eligible.
The cover is provided by Norwich Union who pay out in 95% of claims. On those claims they don't pay out on it is usually due to the fact that something wasn't disclosed when the protection plan was taken out.

WHAT WILL I BE COVERED FOR?

In the event of unemployment you personal loan payments will be made for up to 12 months, until you return to work, or until you reach 65 (whichever is earliest).
Unemployment is not covered if you take voluntary unemployment, if your unemployment starts within 60 days of you starting the protection plan or if you know reasonably about pending unemployment at the beginning of the plan.

If you are off work due to accident , sickness, or disability you loan payments are made until the final repayment (end of the loan), until you return to work or until you reach 65 (again whichever is sooner). The only exceptions to this is self inflicted injury and any pre exciting medical condition which you know about and have had treatment for in the last 12 months, which recurs within 12 months of the start of the protection plan.

In the tragic event of your death the full outstanding balance of the loan is paid off.

A couple of shocking statistics as to why its always important to have the loan protection plan.
1 in 10 people in the UK will have at least a year off work in their lifetime due to an illness.
1 in 4 people in the UK will get cancer.
Most companies only pay you if you are off sick for 12 weeks (some don't even pay that!!) And most don't pay you your full salary.
Sick pay from the state is only about £65 per week!!! Would this pay for your living costs, bills, rent/mortgage and your loan? I think not!!
In the event of your death any debt including loans, credit cards, mortgages, that are not covered by protection are left for your next of kin to pay. I know I wouldn't want my beloved left to pay for all my debts, Death is upsetting enough without the extra worry.

The most important thing to think about before deciding to take out the protection is, if I am off work for any length of time can I realistically afford to make my loan payments on top of everything else I have to pay out each month. If the answer is no, and in 99% of cases it is, then take the protection.

EXAMPLES OF REPAYMENTS

AMOUNT OF LOAN APR TERM MONTHLY PAYMENT

£5000 13.9% 36mths £197.02 approx
£10000 9.9% 60mths £257.35 approx
£15000 8.9% 84mths £306.99 approx
£20000 8.9% 96mths £381.29 approx

(A full example of repayments tables are available on request from any branch on the internet or over the phone).

Cheaper than you thought?
All examples are based on a fully protected loan.

CAN I BORROW MONEY FOR ANY PURPOSE?

Yes as long as its legal!!!! HSBC will lend you money for a new car, holiday, home improvements, holiday home, weddings, consolidate exciting debt whether its with HSBC or not, virtually anything you can think of!!

WHAT SORT OF RATES ARE ON OFFER?

I'm not going to go into too much detail about rates because rates depend on personal circumstances and differ depending on the amount you are looking to borrow. But rates start from as little as 5.9% and that takes some beating.

I DON'T THINK I'LL QUALIFY?

You might be surprised. HSBC look at every application and assess it on you personal circumstances. Millions of HSBC customers are already pre-approved for loans of varying amounts. Pop into your local branch or call 08457 404 404 to find out.

WOULD I RECOMMEND AN HSBC PERSONAL LOAN?

From personal experience and in a word YES!!!!

 

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