HSBC Bank India Personal Loan review

HSBC Bank India offers personal loans under their 'MyTerms Credit Personal Loan' scheme. You can get a personal loan from them to meet any expenses such as a wedding in the family, travel abroad, education, purchase of any asset or any other reason.

A unique feature of this personal loan scheme from HSBC Bank India is that the EMI (Equated Monthly Installment) is lower in the first year and higher in the subsequent years. This is probably to reduce the repayment burden on you at a time when you clearly need money for some purpose.

Another feature is that you can get a personal loan sanctioned for a higher amount, use a lower amount and pay interest on the amount actually used. Let's say you apply for and get approval for a loan of Rs.2 lakhs but actually use only Rs.1.5 lakhs, you'll have to pay interest on only 1.5 lakhs and not the full amount of personal loan sanctioned.

The repayment period of the personal loan can range from 12 months to 60 months, that is between 1 year and 5 years. The amount of the personal loan can be between Rs.50,000 and Rs.15,00,000. There's an upper limit of Rs.15,00,000 for Mumbai and Delhi. The limit for Pune, Chennai, Bangalore and Kolkata is Rs.10,00,000 while it is upto Rs.8,00,000 for other cities.

In times of declining interest rates, sometimes you may be paying higher interest than the current interest rate on some loan you've taken from a bank. In such a case you can save money by getting your loan refinanced by HSBC Bank India. Get a personal loan at a lower rate of interest from HSBC and pay off your old loan, thereby saving on interest costs.

You do not need to offer any collateral or security You also do not need guarantors for the HSBC Bank India personal loan. It's much easier getting a loan from HSBC Bank India if you have an existing credit card with a repayment history of 12 months or more Alternatively if you have taken some sort of retail loan and have a repayment history of over a year, you can get a personal loan from HSBC Bank quickly.

The EMI date for repaying the HSBC Bank India personal loan can be the 1st or 19th of every month.

Eligiblity for a loan under 'MyTerms CreditTM Personal Loan' scheme of HSBC

The HSBC Bank Personal loan is available to salaried/self employed persons between 21 years and 58 years of age. The upper limit for Central Government employees is 60 years while it is 65 years for the self employed. Salaried individuals need to be in continuous employment for atleast 1 year while self employed people need to be in employment for atleast 2 years.

The minimum net annual income needs to be Rs.75,000 per annum (inclusive of co-applicant's or applicant's income) for salaried and self-employed individuals.

The minimum stay at current residence should be for a period of 1 year for salaried and self-employed individuals. To apply, you need to fill out their elaborate personal loan application form. You also need to provide the following documents:

Proof of applicant's identity

Any one document from Passport/Defence identity card/Driving licence/Government identity card/Photo PAN card/Voter's identity card/Photo ration card needs to be provided.

Proof of residence

Any one document from Passport/Telephone (land/mobile) bill/Driving licence/Voter's identity card/Ration card/Electricitybill/Society outgoing bill/Life Insurance Premium receipt needs to be provided.

We recommend that you use a photo copy of your passport for proof of identity, residence and age.

 
Proof of age

Any one document from Passport/Driving licence/Birth certificate/LIC Policy or Premium receipt clearly indicating the applicant's age/Photo ration card/Voter's identity card/School leaving certificate needs to be provided.
 
Financial documents required for salaried persons

Latest salary slip showing statutory deductions OR
Form 16 (Declaration from employer giving details of income and deductions, duly signed by an authorised signatory of the company) OR

Latest acknowledged IT return AND
Bank statements for the last 3 months
 

Self-employed individuals

Computation of income for the last 2 years certified by a C.A. OR
P&L and balance sheet for the last 2 years certified by a C.A.

AND

Copies of acknowledged IT returns for the last 2 years AND
Bank statements for the last 6 months

HSBC Bank India charges 2% of the loan amount as processing fee when the loan is disbursed. Duplicate statements cost Rs.250. If a cheque issued to them bounces or the ECS (Electronic Clearing Service) debit fails to go through due to insufficient funds, there is a charge of Rs.250. These charges are lower as compared to some banks such as Citibank who charge much higher amounts for bounced cheques and when processing the loan.

Prepayment of the HSBC personal loan

You can prepay the HSBC personal loan only six months after taking the loan and a fee equal to 4% of the loan amount is charged when prepaying the loan.

HSBC Bank India has branches in Mumbai, New Delhi, Kolkata, Chennai, Bangalore, Raipur, Chandigarh, Gurgaon, Patna, Ludhiana, Jaipur, Jodhpur, Lucknow, Noida, Hyderabad, Visakhapatnam, Mysore, Kochi, Coimbatore, Ahmedabad, Vadodara, Indore, Nagpur, Pune and Thane.