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HSBC Personal Line of Credit Review: Does it Fit Your Financing Needs?

HSBC's personal line of credit is the cheapest option for those seeking a longer term credit line.

HSBC Personal Line of Credit Review: Does it Fit Your Financing Needs?

HSBC's personal line of credit is the cheapest option for those seeking a longer term credit line.

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HSBC's personal line of credit is the cheapest available for those that plan to use it for several years. This is because HSBC's line of credit charges the lowest interest rate in the market of 14% and lower fees than other banks. Furthermore, the bank offers even better interest rates, which range from 12% to 16.5%, to its existing Premier and Personal Banking customers.

Summary of HSBC Personal Line of Credit
Lowest Interest Rate: 14%
Lowest Annual Fee: Premier – Waived, Personal Banking - S$60 (first year waived)
Standard Credit Limit: Up to 4X monthly salary or 8X for Singaporeans with annual incomes of S$120,000 and above Up to 1X monthly salary for Foreigners with annual incomes of at least S$40,000
Eligibility: Not available to individuals with annual incomes of less than S$30,000
Promotion:

Table of Contents

What Makes HSBC Personal Line of Credit Stand Out to Borrowers

HSBC's personal line of credit is the cheapest available for borrowers that need a credit line for more than a year due to its industry leading 14% annual interest rate. Its fees are also less expensive compared to those of other banks. For example, it charges the lowest annual fee of S$60 for personal lines of credit among banks in Singapore. Additionally, HSBC personal line of credit customers are able to take advantage of the bank's promotion to receive some of the lowest balance transfer rates in the country. These borrowers are eligible for balance transfer loans with 0% interest for 6 months with upfront processing fee of 1.38% (EIR: 3%) or 4.88% interest for 12 months, with no processing fee (EIR 4.88%). The table below summarises HSBC's personal line of credit rates and key features.

Summary of HSBC's Personal Line of Credit Costs

Customer StatusAnnual FeeInterest Rate
HSBC Premier customersWaived14% p.a.
HSBC Personal Banking customersS$60, First year waived12.0% p.a.

However, the HSBC personal line of credit isn't the best choice for everyone. For example, Maybank is a cheaper option for borrowers that plan to use their credit line for just a year or two because it offers a promotional interest rate of 9.8% for the first year of its personal lines of credit. Also, HSBC's personal lines of credit are not an option for lower income individuals as HSBC does not offer the product to those with annual incomes of less than S$30,000. Finally, HSBC's personal lines of credit are not the best pick for high income individuals seeking a credit line with the highest possible credit limit. While HSBC offers limits up to 8 times borrowers’ monthly salary, or S$200,000, to those with annual incomes of at least S$120,000, DBS's Cashline offers even higher credit limits of up to 10 times the monthly income of these individuals.

Who Can Apply: Eligibility Criteria

Consider this if you expect to need a personal line of credit for a few years
  • Eligibility
    • S$30,000 of annual income
    • Max. Credit Limit
      • 4x monthly salary (8x for annual income > S$120,000; Foreigners 1x), up to S$200,000
      • Annual Fee
        • S$60, waived for 1 year

        Eligible applicants for HSBC's personal line of credit must be between 21 and 65 years old and meet the bank's income requirements. For Singapore Citizens or Permanent residents the annual income requirement is S$30,000. Foreigners must earn S$40,000 and have an employment pass with a validity of at least 6 months.

        Other Charges & Fees

        There are a few fees associated with HSBC's personal line of credit. These fees, which are standard among lenders in Singapore, are lower than many of those charged by other banks. For example, HSBC charges the lowest annual and late payment fees of S$60 and S$75, respectively, and does not charge an overlimit fee. With that said, we strongly advise that borrowers avoid unnecessary fee charges in order to minimise the total cost of their loan.

        FeeAmount
        Annual FeePremier – Waived, Personal Banking - S$60 (first year waived)
        Late Payment FeeS$75
        Overlimit FeeN/A
        Minimum Monthly Repayment3% or S$15, whichever is higher

        How to Apply for HSBC's Personal Line of Credit

        To apply for HSBC's personal line of credit individuals must fill out an application form. Upon approval in-principle, applicants will be required to provide additional documentation including proof of income. HSBC's website does not provide details for the types of documents it requires; however, it is common for banks to request CPF contribution statements, computerised payslips or Income Tax Notice of Assessments.

        Stephen Lee

        Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.

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