HSBC offers some of the cheapest personal loans in Singapore due to its market leading effective interest rates (starting at 7%) and processing fee waiver for online applicants. The bank also provides personal loans of up to 7 years, which is the longest tenure available in Singapore.
|Summary of HSBC Personal Loans|
|Lowest Effective Interest Rates: from 7%|
|Longest Loan Durations: 1 - 7 years|
|Quick Approval: 1 minute approval, receive cash within one business day|
|Lowest Income Requirement for Foreigners: S$40,000|
Table of Contents
What Makes HSBC's Personal Loans Stand Out to Borrowers
HSBC offers the most affordable personal loans in Singapore, given its promotional interest rates offered through ValueChampion starting at 3.7% p.a. (EIR 7%). The bank also provides loans with the longest tenures (up to 7 years) in Singapore. This allows borrowers to decrease their monthly payments by spreading the cost of the loan over a longer period of time. This helps individuals that are worried about their ability to meet monthly payment requirements. HSBC is also currently waiving its S$88 processing fee. The bank also offers loan approval within 1 minute and cash disbursement within one day, making it one of the fastest lending options.
Table of HSBC's Personal Loan Interest Rates and Monthly Costs
|Loan Duration||Flat Rate||Processing Fee||EIR||Monthly Instalment||Total Cost|
|*Assuming S$10,000 loan and income of S$30,000; includes processing fee waiver (Note that rates above are not indicative of your customised loan offer)|
While HSBC's loans are the most affordable personal loans in Singapore, individuals seeking smaller loans may be better off with another lender. For example, HSBC's minimum loan requirement of S$5,000 is not the lowest, making other banks better options for very small loans. Finally, individuals seeking a loan for a specific use, such as a car loan, will likely find better rates elsewhere.
Great Personal Loan for Foreigners in Singapore
HSBC is a great option for foreigners in Singapore that seek personal loans. First, the bank has the lowest minimum income requirement for foreign borrowers in the country (S$40,000). This requirement is thousands of dollars less than other banks. Additionally, foreigners with at least S$120,000 are allowed to borrow 8x their monthly income up to S$200,000, while those earning S$40,000 to S$120,000 may borrow 4x their monthly income up to S$100,000, making HSBC a great option for foreigners that are in need of a sizable personal loan.
Who Can Apply: Eligibility Criteria
HSBC offers personal loans to Singapore citizens and permanent residents with annual salaries of at least S$30,000, as well as self-employed and commission-based workers and foreign residents in Singapore with annual incomes of at least S$40,000. All individuals with at least S$120,000 are eligible for loans of up to 8 times their monthly income up to S$200,000. Additionally, foreigners must provide proof of employment in Singapore. Please note that HSBC offers personalised interest rate offers depending on your borrowing profile, and that you may not be eligible for their lowest rates.
|Feature||Foreigner Residing in Singapore||Citizens & Permanent Residents|
|Maximum Loan Amount||4x monthly income up to S$100,000||8x monthly income up to S$200,000||4x monthly income||8x monthly income up to S$200,000|
|Minimum Loan Amount||S$5,000||S$5,000||S$5,000||S$5,000|
|*Annual income requirement for self-employed and commission-based earners is S$40,000|
Other Charges & Fees
HSBC charges an early repayment fee of 2.5% of redemption and a late fee of 2.5% + prevailing interest on overdue amount. Both are quite similar to other banks in Singapore. That being said, we recommend repaying any loan in a timely fashion in order to avoid accumulating costs from fees.
How to Apply for HSBC's Personal Loans
Before applying, make sure to review your options and understand the different costs associated with each loan. To begin the application process, you'll need to provide the bank with your personal contact, financial and employment information. HSBC offers approval confirmation within 1 minute, making the application process hassle-free.
- Completed and signed Letter of Instruction
- Clear photocopy of NRIC
- Clear photocopy of employment pass (foreigners only)
- Income documents