HSBC Personal Loan

We will specifically discuss HSBC personal loans and understand the features and other aspects of both secured and unsecured loans.

Features and Benefits of HSBC Personal Loan

HSBC offers two types of personal loans to individuals residing in the UAE, namely, secured and unsecured. Let’s uncover the key features and benefits of both types of loans -

Secured Personal Loan

• You don’t have to pay any early settlement fee or arrangement fee with this type of HSBC personal loan.
• You don’t require credit life insurance to avail of this loan.
• The bank offers you a flexible loan repayment tenure of 36 months.
• You can avail of a loan up to 90% of the Term Deposit.
• The bank grants you the loan in the same currency as the Term Deposit.
• You have a fixed payment schedule which ensures that your loan is repaid over time.

Unsecured Personal Loan

• The bank offers you a fixed rate loan with monthly instalments, which comprise interest and principal.
• You can avail of the top-up option, which is available after 12 months of successful repayments.
• Credit life insurance is not mandatory to apply for this personal loan in UAE.
• You have the option to take two payment holidays per year subject to applicable fees listed under the Schedule of Tariff and Services.
• You have flexible repayment tenures from 6 months to 48 months. Note that for UAE armed forces, the repayment tenure is 60 months.
• You can avail of buy-out facilities to HSBC from another financial institution. 

What are the Eligibility Criteria for HSBC Personal Loan?

Discussed below are the eligibility requirements to apply for secured and unsecured HSBC personal loans -

Secured Loan

• You must be a UAE resident or a UAE national.
• Your age must be between 21 and 65 years.
• You must have a current account with HSBC and hold a term deposit. 

Unsecured Loan

• You must be a UAE resident or a UAE national.
• Your age must be between 21 and 65 years.
• You must have a current account with HSBC (for both salary and non-salary transfer loans) and credit your salary to that account (only for salary transfer loans).
• You must possess a monthly salary of AED 7,500 for a salary transfer loan and AED 15,000 for a non-salary transfer loan. 

HSBC Personal Loan: Fees and Charges

The fees and charges of the HSBC Personal Loan are as follows -

Types of Fees	Charges
Arrangement Fee for New loans	1% (1.05% inclusive of VAT) of the loan amount - minimum AED 500 (AED 525 inclusive of VAT) and maximum AED 2,500 (AED 2,625 inclusive of VAT)
Arrangement Fee for Top-Up Loans	1% (1.05% inclusive of VAT) of the top-up amount Minimum - AED 500 (AED 525 inclusive of VAT) Maximum - AED 2,500 (AED 2,625 inclusive of VAT)
Annual Percentage Rate for Both New and Top-Up Loans	6.74% – 15.25% .
Late Payment Fee	2% (2.1% inclusive of VAT) of the delayed amount - minimum AED 50 (AED 52.5 inclusive of VAT) and maximum AED 140 (AED 147 inclusive of VAT)
Loan Cancellation Fee	AED 100 (AED 105 inclusive of VAT)
Liability Letter	AED 50 (AED 52.5 inclusive of VAT)
No Liability Letter	AED 50 (AED 52.5 inclusive of VAT)
Loan Rescheduling Fee	AED 250 (AED 262.5 inclusive of VAT)
Payment Holiday Administration Fee	AED 100 (AED 105 inclusive of VAT) for each Payment Holiday
Early Settlement of Loan (Other Sources/ End of Service Benefit)	1% (1.05% inclusive of VAT) of the outstanding loan amount with a maximum of AED 10,000 (AED 10,500 inclusive of VAT), whichever is lower
Early Settlement of Loan From Other Bank Loans	1% (1.05% inclusive of VAT) of the outstanding loan amount or AED 10,000 (AED 10,500 inclusive of VAT), whichever is lower
Partial Payment of Loan	1% (1.05% inclusive of VAT) of the partial payment amount or max fee of AED 10,000 (AED 10,500 inclusive of VAT), whichever is lower

HSBC Personal Loan: Terms and Conditions

The following are some of the terms and conditions with respect to the HSBC personal loan in the UAE - 

• Failing to make timely payments on your loan may result in additional interest charges, which can increase your debt and bring extra fees as well. Consistently delayed or missed payments can negatively impact your credit rating, which can make it more challenging for you to obtain future credit. In the worst-case scenario, it could potentially lead to legal consequences as measures can be taken by the bank to recover the outstanding debt.
• In case you reconsider your decision regarding the loan, you have the option to cancel it. A cooling-off period of 5 working days commences on the next working day after you sign the personal loan terms. During this period, you have the right to cancel the loan agreement without incurring an early settlement fee and the bank will refund the arrangement fee. However, it's important to note that before exercising your right to cancel, you must fully repay the loan balance along with any other outstanding amounts related to the loan. If the loan still has an outstanding balance, cancellation of the loan agreement may not be possible. 
• In case you intend to use the loan to repay an existing loan from another financial institution or if this agreement is an additional amount on an existing loan, the bank will not transfer the loan funds to either another financial institution (in the case of a buyout) or you (in the case of a top-up). 

Should you decide to terminate the loan agreement prior to its scheduled completion but after the cooling-off period has expired or been waived, early settlement charges will be applicable. This may include any relevant fees for early settlement.

For detailed terms and conditions, refer to the official website of the bank. 

Let’s now explore some of the most frequently asked questions regarding HSBC Personal Loan!

Frequently Asked Questions