MoneyGeek’s Take
HSBC Personal Loan Review
Updated: December 28, 2023
Advertising & Editorial Disclosure
HSBC personal loans don't require collateral and can be used for medical bills, home improvements, travel debt consolidation and more. Loan terms range from two to five years, with fixed interest rates. Plus, funding is available on the day of approval.
At a Glance: HSBC Personal Loans
MoneyGeek Breakdown - HSBC Personal Loan Details and Requirements
Is HSBC Right for You?
Personal loan lenders offer different perks, so you need to consider several factors when choosing one. Here are some people that HSBC could be great for and others who should consider other personal loan companies.
Who HSBC Is Perfect For
People with excellent credit who want their loan proceeds quickly can take advantage of HSBC's fast funding and competitive rates. This lender has no prepayment penalty. This means that if you plan to pay your loan early, you can save hundreds of dollars on interest without getting penalized.
The loanable amount ranges from $3,000 to $30,000 with a fixed rate and monthly payment. To ensure you don't forget to pay your due, you can automate your payments. This is also perfect for you if you want to avoid origination fees and an annual fee.
When you meet the requirements, you can check rates without negatively impacting your credit score, allowing you to choose the best option for you.
Who Should Not Choose HSBC
To qualify for a personal loan, you must have an existing HSBC Premier account, must be of legal age and have proof of address and a verifiable income. While HSBC's rates are competitive, if you don’t meet the listed requirements, you may want to find another provider.
HSBC’s loan is subject to credit approval and you can only enjoy the lowest rates when you have an excellent credit score. The APR for the personal loan starts at 5.99%.
The maximum loanable amount is $30,000, so if this doesn't fit your needs, this bank may not work for you.
HSBC also doesn’t offer direct payments to creditors when you get a personal loan for debt consolidation. Moreover, HSBC doesn’t allow co-signers.
How to Apply for an HSBC Personal Loan
When you determine that HSBC will fit your needs, you can apply for a loan. MoneyGeek listed the important steps to follow during the loan application process.
Prequalify
Through a soft credit inquiry, you can find out what rates you may qualify for without affecting your credit score. However, keep in mind that when HSBC receives a complete application, it will conduct a hard credit pull. This can impact your credit score temporarily.
Fill Out Application Form
On HSBC's personal loans page, click on the "Apply Online" button if you're a new customer. If you're an existing customer, log in to your online account. Fill out information like your full name, email address and your preferred loan amount.
Wait for Approval
After submitting your loan application, HSBC will review your credentials to determine if you qualify. In most cases, eligible borrowers receive same-day or next-day approval.
Review Loan Agreement
Take the time to thoroughly read through the loan agreement provided by HSBC. Pay attention to the amount, term and any fees or potential discounts you might be able to take advantage of. Thoroughly understanding your loan agreement can ensure you don’t incur unexpected charges.
Sign Loan Agreement
After reading all the loan information in your loan package and agreeing to the terms, you can sign the loan agreement.
Receive or Direct Funds
Upon approval and signing of the agreement note, funds are available almost immediately. You can receive your funds through your HSBC account.
Make Payments
Your HSBC loan has a fixed monthly rate, so you can automate payments to avoid potential late fees. Plus, if you choose to pay off your loan balance earlier, the lender won't charge you a prepayment fee.
What to Do if You Are Rejected From HSBC
Personal loan requests usually get rejected due to a poor credit score, not enough credit history, low income or inadequate documentation. If your application gets rejected, ask your lender for an explanation and don’t get discouraged. These denials happen regularly.
Most banks provide explanations of why they decline loan applications. Review the disclosures provided by your lender to learn about what you need to improve. This way, you can avoid the risk of another rejection.
Applying to another lender immediately after getting rejected can be a bad idea since it might impact your credit score. The best thing to do is ensure you have an excellent credit score, solid credit history and a good debt-to-income ratio to improve your chances of approval. This strategy can also help you get the best rates.
Frequently Asked Questions About Personal Loans
MoneyGeek answered some of the most frequently asked questions related to HSBC personal loans to help you determine if it is the right lender for you.
You can use your HSBC personal loan for anything like medical bills, home improvements, travel and debt consolidation.
While HSBC doesn’t specify a minimum credit score to qualify for their personal loans, they do reveal that you need an excellent credit score to get the lowest APR.
It usually takes one to two business days for HSBC to make a decision. Once your application is approved, you can receive your funding on the same day.
Yes, it does. You can use it to monitor your accounts, pay bills, transfer funds and more.
Only unsecured personal loans are available to borrowers at HSBC.
You can borrow up to $30,000 from HSBC.
HSBC does not charge any origination fees.
Prequalification is available from HSBC if you want to see your potential terms and rates. Since this process involves a soft credit pull, it will not affect your credit score. However, your credit score might be impacted once you submit your loan application since HSBC will do a hard credit inquiry when you complete a full application.
HSBC does not offer any discounts for setting up autopay.
No. Currently, HSBC does not accept co-signers on personal loans.
sources
- HSBC Bank. "Personal Loans." Accessed April 20, 2022.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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