HSBC Personal Loan

Documents required for HSBC Bank Personal Loan

1. Duly-filled application form that has been attested by the applicant.
2. 1 recent passport size photograph.
3. Proof of identification - Passport, Voter ID card, Permanent driving license, Government Employee ID card, PAN card, Defence ID card, ration card, Aadhaar card, or NREGA card.
4. Proof of residence - Passport, Society Outgoing Bill, Voter ID card, Electricity or water bill, Permanent driving license, Gas bill, Government Employee ID card, PAN card, Defence ID card, ration card, Aadhaar card, or NREGA card.
5. Proof of age - Passport, driving license, PAN card, School leaving certificate, or Birth Certificate.
6. Latest salary slips or Form 16.
7. Salary account statements of the last 3 months.

For self-employed individuals

1. Audited financial statements or balance sheet, Income Tax returns of the last 2 years and bank statements of the last 6 months of the primary bank account of the applicant.

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Why Choose HSBC Bank Personal Loan?

1. HSBC personal loan comes with a maximum repayment tenure of 5 years. So, customers have the choice of flexible tenure starting from 6,12,18,24,30,36,42,48,54 or 60 months.
2. Flexible EMI (equated monthly installment) options through bank account Standing Instructions. Customer can also choose the ECS (Electronic Clearing System) to repay their personal loan.
3. Does not require a guarantor.
4. Quick processing, documentation, and disbursal process.
5. Loan transfer from any other bank to HSBC.

Fees and Charges of HSBC Bank Personal Loan

Schedule of Charges
Processing Fee	1% of the disbursed loan amount
Foreclosure or prepayment charges	2%-5% of the principal outstanding amount.

How Does the EMI Calculation for HSBC Bank Personal Loan Work?

Let's assume that Mrs.Vandana avails a personal loan from HSBC Bank for Rs.1 lakh at an interest rate of 9.99% p.a. Listed below in the table is the EMI breakup over 12 months, taking into consideration the principal amount as well as the interest applicable over the loan amount.

Months	Principal amount (A)	Interest (B)	Total (A+B)	Balance Amount
June	Rs.7,959	Rs.833	Rs.8,792	Rs.92,042
July	Rs.8,025	Rs.766	Rs.8,791	Rs.84,017
August	Rs.8,092	Rs.699	Rs.8,791	Rs.75,925
September	Rs.8,159	Rs.632	Rs.8,791	Rs.67,766
October	Rs.8,227	Rs.564	Rs.8,791	Rs.59,539
November	Rs.8,295	Rs.496	Rs.8,791	Rs.51,244
December	Rs.8,364	Rs.427	Rs.8,791	Rs.42,880
January	Rs.8,434	Rs.357	Rs.8,791	Rs.34,446
February	Rs.8,504	Rs.287	Rs.8,791	Rs.25,941
March	Rs.8,575	Rs.216	Rs.8,791	Rs.17,366
April	Rs.8,646	Rs.145	Rs.8,791	Rs.8,720
May	Rs.8,720	Rs.73	Rs.8,793	Rs.0

Based on the amortisation table, Mrs.Vandana will have to pay a monthly EMI of Rs.8,791 for a span of 12 months to clear the personal loan of Rs.1 lakh.

How Does HSBC Personal Loan Compare with Other Personal Loans?

Particulars	HSBC Personal Loan	Citibank Personal Loan	SBI Personal Loan
Interest rate	10.15% p.a. to 16.00% p.a.	11.49%p.a. -20.49% p.a.	11.45% p.a. onwards
Processing fee	Up to 2% of the loan amount	Up to 3.00% of the loan amount	1% + GST
Foreclosure charges	2%-5% of the outstanding principal amount	Up to 4% of the principal outstanding	1% of the outstanding loan amount

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FAQs on HSBC personal loan

• Where will I receive the HSBC personal loan amount once the loan has been approved? Will I receive all the money at once?

  Following the submission of the application form and the relevant documents, the customer will receive the disbursed loan amount in the bank account he/she has mentioned in the personal loan application form.
  Yes, when the personal loan money is disbursed, you will receive the entire amount that you have applied for as there is no partial disbursement for HSBC Bank personal loans.

• What factors are taken into consideration when the EMIs (Equated monthly installments) are calculated by HSBC Bank?

  When calculating the EMI which is basically the monthly repayment of the loan, HSBC Bank takes into consideration the interest rate applicable over the loan amount and the principal loan amount divided by the repayment tenure chosen by the customer. The interest rate will depend on the repayment tenure chosen by the customer. The longer the repayment tenure chosen by the customer, the higher will be the interest rate set by HSBC Bank.

• What will happen if I miss HSBC EMI payment? Which is the best way to avoid missing my EMI payment?

  If you do miss your EMI payment by the due date, then your credit rating will be affected, and other credit facilities of HSBC Bank will be affected as well. In addition, HSBC Bank might initiate a recovering proceeding for late payment charges.

• Is it possible to pre-close an HSBC Bank personal loan? How will I know if the loan is actually closed by the bank once I have pre-closed the loan? Can I make a partial pre-payment towards my personal loan?

  Yes, you can pre-close an HSBC Bank personal loan one year from the date of disbursement of the loan. Customers that do not know, personal loan pre-closure is basically when the customer decides to repay the loan before the set repayment tenure of the personal loan. For pre-closures, HSBC Bank charges between 2% and 5% of the outstanding principal amount of the personal loan.

• What are the most probable EMI due dates that will be set by HSBC Bank?

  The EMI due date will depend on the disbursal date of the personal loan. Usually, the EMI due date will be set between the 5th and the 15th of each calendar month.

• What is the maximum loan amount offered by HSBC bank?

  The maximum loan amount that can be availed by a customer is Rs.15 lakh. That said, HSBC Bank offers personal loans up to Rs.30 lakh for select customers only, based on their internal credit policy.

• Other important terms and conditions you should know about HSBC Loan

  The interest rate of the personal loan depends on the repayment tenure chosen by the customer. In the case of personal loans, customers can choose prepayment of the loan after 12 months from the date of disbursement of the loan. The EMI due date will be between the 1st and 15th of every month. Personal loans disbursed between the 1st and 15nth of the month, the EMI due date will be set on the 5th of the following calendar months. In the case of personal loans disbursed between the 15th and the 31st of the month, the EMI due date will be set on the 15th of the following calendar months.