HSBC: Shopping For The Best Personal Loan

October 27, 2015

[Advice column by HSBC Bermuda]

I’m shopping around for the best personal loan. What should I consider?

Your personal circumstances will largely determine what personal loan is best for you. Some things to consider are the interest rate, the down payment required and secured vs unsecured, and repayment details. Let’s look at each a little closer.

Interest Rate

The lower the interest rate, the better. It will impact the total amount you repay over time. For example, let’s say you borrowed $50,000 with a repayment plan of 5 years. If your interest rate is 7.75% you will pay $10,471 in interest over the 5 years. However, if your interest rate is 6.75% you will pay $8,698.60. That’s nearly $2,000 in savings!

Down Payment

Some banks will only lend you 80% of your total purchase. This means that you will have to pay the remaining 20% yourself. If you do not have or want to pay the 20% down payment you should explore 100% financing. HSBC is the only bank in Bermuda who offers personal loans with no down payment.
Secured vs Unsecured

With a secured loan you are required to provide collateral to the bank. Collateral is something of value such as a car. If you do not repay the loan, the bank will have the right to sell the collateral and apply the proceeds to your debt.
You do not have to provide collateral with an unsecured loan.

Repayment

Repayment periods can vary between one and five years. If you want lower monthly payments, consider five years. However, keep in mind that the longer you take to repay the loan, the more interest you will pay. To calculate monthly loan payments and total interest charged use our loan calculator.

Also, be sure to check if you are restricted on the amount of overpayments you can make. Overpayments are additional contributions to your loan above your agreed monthly payment. In some cases there are penalty fees associated with overpayments.

HSBC Personal Loans

Whether you’re buying a car, surprising your teenager with their first bike or renovating your home an HSBC Personal Loan is an affordable and easy option.

  • 0% down payment
  • Save $1,000 with a reduced interest rate of 6.75%*
  • Apply online and save $200
  • Make overpayments without charge, which may reduce the amount of interest you pay
  • Flexible repayment schedule between one and five years

How To Apply

  • Apply online
  • Call +1 441 299 5959 to arrange an appointment with a Personal Banker or contact your HSBC Premier Relationship Manager

*Limited time offer. 6.75% interest rate available on personal loans of $10,000 or more. Savings based on a $36,000 personal loan. A loan is subject to formal credit approval with HSBC Issued by HSBC Bank Bermuda Limited which is licensed to conduct Banking and Investment Business by the Bermuda Monetary Authority.

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