HSBC UK personal Loan: what you need to know and how to apply

HSBC UK personal loan help borrower achieve their goals and the opportunity to borrow more money than would be available using a credit.This type of loan are unsecured, meaning the credit facility is not fixed to an asset, such as your home or your car, unlike a secured loan.Interest rates are also usually lower than they would be with a credit card, although they do vary.

Customers can Borrow from £1,000 to £25,000 and spread repayments over 1 to 5 years for loans of £15,000 or less, or over 1 to 8 years for loans over £15,000 at 3.3% APR* representative this is subject to change based on amount borrowed… The maximum APR you could be offered is 21.9%.

If you are current account holder,you could get an instant credit decision and receive the money instantly once the application has been approved and the loan agreement has been signed. while, Non-HSBC current account customers should be contacted with a credit decision in 2-5 working days and receive the money into a nominated account in  3 working days after the signed loan agreement is received.

Also read: Nationwide Building Society Personal Loan: Requirements and how to apply

Loans amount between £7,000 and £15,000 are also available to non-HSBC current account customers.

HSBC UK personal loan interest rate are two types:fixed rate loans and variable rate loans—–The fixed rate loan stay the same over the period of the loan.On the other hand, variable rate loan, may fluctuate. So, your repayments could increase or decrease.

What to consider before apply for a Loan

1. Before you apply for a loan, there are some things you need to consider. Is a personal loan the right option, isn’t the only choice available.

2. What will the repayments be, you have to consider how much your repayments could be and how that may impact your budget, such as reducing the loan amount or extending the loan term

3. Additionally,Are you considering getting a secured or unsecured loan. When you are applying for a secure loan with HSBC, you will have to provide an asset.This asset will be at risk if you can’t pay the loan back

With unsecured loan, you don’t provide security, but the amount you can borrow is typically smaller.

Also read: HSBC bank: How to open checking , HSBC International account and register for Online banking

4. How’s your credit report looking considering your past borrowing and financial history. This play a major role during approval for a personal loan, as well as the amount of money and interest rate you’re offered.

5. What’s the term of the loan: Short term loan has lower interest rate why long term loan has higher interst rate. So consider the one that best fit your bughet for repayment.

6. Fees and charges: interest rate you’re offered will be determined by:

. your financial history

. your personal circumstances

. how much you want to borrow

. how long you want to borrow for

7. penalty for early or late repayment: Some lenders will charge you a fee for paying off your personal loan early why some may not. But for late payment find out on that as well.

8. Deciding how much to borrow

When you apply for a loan, you’ll need to have a good understanding of the costs you need to meet.Once you’ve figured out how much you need, it’s time to look at how much you can afford to repay monthly.

Read: Bank of America Small Business Loans & Financing: requirements and How to apply

When is the best time to take a personal loan

This kind of loans can be useful when you want to borrow a relatively large amount with long term repayment ,credit card might be better for short-term borrowing

consider a personal loan to spread the cost of a big purchase like:

1.  Car
2. Wedding
3. Home improvements
4. consolidate existing debts into one monthly repayment so you have one monthly payment to deal with, but bear in mind that extending your debt could mean you end up paying more interest.

How do you apply for a HSBC personal Loan

Before you apply for HSBC personal Loan, ensure you read the important information in the ‘Things you should know’ section before applying. You can apply for a loan online, or through the mobile app as well through in branch

 

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