HSBC Personal Loan Review

HSBC Personal Loan Review

HSBC's personal loans are good for individuals seeking large, long-term loans.

Good for

  • Borrowers seeking a personal loan with a tenure of 3 - 7 years
  • Individuals seeking large personal loans
  • Individuals earning more than S$80,000
  • Foreigners seeking a personal loan in Singapore

Bad for

  • Borrowers seeking the cheapest, short-term loan under 3 years
  • Individuals seeking a specific-use loan (e.g. car loan)

Editor's Rating

4.5/5.0

Individuals seeking large personal loans with long tenures should consider HSBC's personal loans. HSBC offers the longest personal loan tenures in Singapore of up to 7 years. It also offers the best rates on long-term personal loans. That being said, it is not the cheapest for short-term loans of under 3 years.

Summary of HSBC Personal Loans
Longest Loan Durations: 1 - 7 years
Best Long-Term Flat Rates: 3.7 - 5.0%
Processing Fee: S$88
Quick Approval: 1 minute approval, receive cash within one business day
Lowest Income Requirement for Foreigners: S$40,000
Promotion: Processing fee (S$88) waived and S$50 cashback for online applicants

Table of Contents

What Makes HSBC's Personal Loans Stand Out to Borrowers

HSBC offers personal 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 currently waiving their S$88 processing fee and offering S$50 cashback to online applicants. 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 DurationFlat Rate^Processing FeeEffective Interest RateMonthly Instalment*
17.2%S$013%S$893.33
27.1%S$013%S$475.83
34.8%S$09%S$317.78
44.9%S$09%S$249.17
54.9%S$09%S$207.50
65.0%S$09%S$180.56
75.0%S$09%S$160.71
*Assuming S$10,000 of loan and income of S$30,000; processing fee is waived for online application

Additionally, HSBC charges the lowest effective interest rates (7-9% EIR) for loans of 3 to 7 years. Its personal loans are particularly good deals for individuals that earn at least S$80,000 annually. These borrowers pay flat rates of 3.7% to 3.8% (EIR 7%), which is the best rate rate for long-term personal loans by far.

Loan DurationFlat Rate^Processing FeeEffective Interest RateMonthly Instalment*
17.2%S$013%S$893.33
27.1%S$013%S$475.83
33.7%S$07%S$308.61
43.7%S$07%S$239.17
53.8%S$07%S$198.33
63.8%S$07%S$170.56
73.8%S$07%S$150.71
*Assuming S$10,000 of loan and income of S$80,000; processing fee is waived for online application

In the chart below, we illustrate the total costs of borrowing S$10,000 in the form of a personal loan over 3 to 5 years across a handful of the best personal loan providers. HSBC is the lowest cost option for individuals with incomes of at least S$80,000 during these tenures. These estimates account for interests, processing fees and promotions.

While HSBC's personal loans are great long-term options, its short-term interest rates are not the cheapest (7.1% flat rate, 13% EIR). Individuals seeking 1 to 2 year loans should consider banks with better rates, such as Standard Chartered or Citi. Additionally, its 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.

Income Requirement for Foreigners Residing in Singapore

Who Can Apply: Eligibility Criteria

Consider this if you require a large, long-term personal loan

Eligibility S$30,000 of annual income (S$40,000 for foreigners)
Max. Loan Amount 4x monthly salary for income S$30,000 to S$120,000; 8x monthly salary for income > S$120,000; S$200,000 Maximum Loan Size (2x monthly salary for foreigners)
Min. Loan Amount S$5,000
Processing Fee S$88, waived for online applicants
Approval Time 1 minute approval, receive cash in one business day

HSBC offers personal loans to Singapore citizens and permanent residents with annual incomes of at least S$30,000 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.

FeatureForeigner Residing in SingaporeCitizens & Permanent Residents
Income RequirementS$40,000S$120,000S$30,000S$120,000
Maximum Loan Amount4x monthly income up to S$100,0008x monthly income up to S$200,0004x monthly income8x monthly income up to S$200,000
Minimum Loan AmountS$5,000S$5,000S$5,000S$5,000

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

Comments and Questions

Personal Loans
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