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Personal Loan

The Hong Kong and Shanghai Banking Corporation offers HSBC Personal Loans to its customers which have multiple uses. The personal loans from HSBC can be used for a family marriage, taking a vacation, renovating or furnishing the home or even for the child’s higher education purpose. The customers can approach the bank and easily apply for an HSBC personal loan and avail the loan if they fit the eligibility criteria.

Features of HSBC Personal Loan

The loan has the following features and benefits:

  • Loan is available to HSBC customers in cities of Mumbai, Delhi, Bangalore, Pune, Kolkata, Hyderabad, Ahmedabad, Jaipur, Chandigarh, Chennai, Thiruvananthapuram, Cochin, Ludhiana and Baroda only
  • The loan is to be repaid within 12-60 months. The tenure is flexible and can be chosen in multiples of 6 months after 12 months i.e., either 18, 24, 30, 36, 48, 54 or 60 months. Any tenure can be chosen depending on the customer and the EMI installment. For higher terms, the corresponding EMI will be lower and for lower tenures, the EMIs will  be higher
  • The maximum amount of loan that can be availed under this scheme is Rs.15 lakhs. However, certain customers may also be granted a loan for up to Rs.30 lakhs which will be based on the internal credit policy of the bank. The minimum amount of loan available to customers is Rs.75, 000.
  • The loan is repaid through Equated Monthly Installments (EMIs). The loan is generally paid through post-dated cheques but can also be paid through Electronic Clearing Systems (ECS) or by setting up Standing Instructions (SI) to the bank to debit the amount of loan through the existing HSBC savings account.
  • The bank has a set EMI date of 5th or 15th of every month. The choice between the two dates depends on the date the loan has been disbursed.
  • For loans disbursed between the 1st and 15th of any calendar month, the EMI date will be 5th of the next calendar month and for loans disbursed between 16th and 31st of any calendar month, the EMI date will be the 15th of the next calendar month.
  • If the customer has an existing personal loan with another bank or financial institution and is looking to reduce his EMIs, he can transfer the loan to the Personal Loan scheme offered by HSBC
  • This is an unsecured loan which does not require any guarantor or any security to be pledged with the bank for availing the loan. A guarantor is that individual who promises to pay off the loan if the borrower fails to make the loan repayments while a security is any asset which has a value and which is pledged as collateral to avail the loan. In case the loan repayments are not paid, the bank can sell of the security and realize the debt. HSBC has an easy loan policy which does not require pledging a security or bringing in a third party guarantee for the loan.
  • The bank offers the facility of quick loan processing so that the customer does not have to wait long for the funds and can avail the funds quickly. The documentation required is simple which is easily available with any individual and the disbursal is also quick, easy and hassle-free
  • The loan is given for home renovation or other expenses related to the home, marriage related expenses, travel related expenses, to transfer an existing Personal Loan from another bank or financial institution, to purchase consumer durables and equipment and for any other relevant personal needs and contingencies.
  • The loan is offered at a fixed rate of interest. It means that the rate of interest does not change during the course of the loan and remains the same throughout the repayment period
  • The customer can make pre-payments towards loan repayment. However, pre-payment is allowed only after 6 months from the date of loan disbursal and not earlier. Partial pre-payments are also allowed under the loan where the customer can make a maximum of 20% of the loan amount across 2 transactions per year. Moreover, after the pre-payment, the customer may choose to continue with the same EMI or reduce the EMI.

HSBC Personal Loan Eligibility

The following eligibility criteria should be met by any applicant applying for an HSBC personal loan:

  • The applicant must be an existing customer of HSBC personal loan is only available to an existing customer
  • The individual should be a Resident Indian meaning that he should be residing in India
  • The applicant must be at least 21 years of age to apply for an HSBC personal loan and to fill a loan application.
  • The maximum age at the time when the loan matures is 58 years in case of individuals who are employed and draw a salary and 60 years for individuals who are self-employed and run their own business
  • The individual must be earning a minimum income of Rs.4 lakhs and above per annum if he or she is in the Corporate Employee Program to apply for an HSBC personal loan. The minimum income required for HSBC personal loan  for other individuals is Rs.5 lakhs and above per annum

The bank asks questions relevant to check the eligibility is met. If the questions are correctly answered, the loan amount is asked for along with the tenure of repayment. After providing the necessary details, the Equated Monthly Installment (EMI) is generated.

HSBC personal loan interest rates

The HSBC personal loan interest rate ranges from 11.29% p.a. to 17.5% per annum

Personal Loan Turn Around Time (TAT)

After the applicant submits the completed application form, the bank will consider it and either accept the form or reject it. The bank’s decision regarding acceptance or rejection is conveyed to the customer within 15 days from the date of form submission.

Loan Fees and Charges



 HSBC personal Loan Processing Charges

Up to 2.5% of the loan amount disbursed. The processing fee once paid is not refunded back to the customer

Foreclosure / Partial Pre-payment charges

Up to 3.75% of the outstanding amount of loan

Cheque Return Charges


Cheque Swap Charges


Late Payment Charges

2% over the applicable interest rate on the delayed installments plus Rs.250 per late payment.

Along with the above-mentioned charges, Service Tax as applicable will also be levied.

  • The bank has all the rights to charge the late payment or cheque return charges.
  • The sanctioning of Personal loan is completely on the sole discretion of the Hong Kong And Shanghai Banking Corporation Limited (India) and it is available only in the following cities:-

Mumbai, Delhi, Pune, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Jaipur, Chandigarh, Chennai, Thiruvananthapuram, Cochin, and Ludhiana. And it is subject to the changes and depends totally on the customer’s credibility and bank policies.

  • If the customer wishes to cancel the loan application then he has to convey it in writing to the bank.
  • The fees and charges are required to be paid by the customers as and when levied by the bank for the specific services provided or for the defaults committed by the borrower with reference to his loan account.
  • Change in tariff structure totally depends on upon the policies of the bank except in the change of the finance charges and EMI and others those are the result of the regulatory authority will be made by the bank giving a prior notice of one month to the borrower.
  • The customer should be aware that the indirect taxes will be recovered by the bank which is applicable on the fees and charges and on any other amount which is applicable under the Indirect Tax Laws.
  • Late payment charges will be charged if the EMI’s are not paid on the due date.


The following documents are required to be submitted at the time of loan application:

  • A completely filled up Loan Application Form with one passport sized photograph
  • A valid Identity Proof which can be any one of these documents like Passport, Election or Voter’s ID card, permanent Driving License, Government employee ID Card, Defense ID Card, Permanent Account Number (PAN) Card, Aadhar Card, Photo Ration Card, National Rural Employment Guarantee Act (NREGA) Job Card.
  • A valid proof of residence which can be any of these documents like Passport, Election or Voter’s ID Card, Permanent Account Number (PAN) Card, permanent Driving License, Ration Card, society outgoing bill only from registered societies, Utility Bills like Electricity/Water/Telephone Bill, Gas Bill for pipeline connection only, Property Tax Bill, Domicile Certificate with address issued by Municipal Corporation, registered rent or lease agreement which is either registered with the State Government or any similar registration authority
  • Age proof which can be any of the documents like passport, driving license, birth certificate, photo PAN Card and School Leaving Certificate are the requirements for personal loans.
  • Financial documents for salaried individuals which is the latest Salary Slip showing statutory deductions or Form 16 which is a declaration from employer giving the complete details of income and deductions and which is duly signed by an authorized signatory of the company and the Salary Account statements for the last 3 months
  • Financial documents for self-employed individuals include audited or certified financials like Profit & Loss Account and Balance Sheet and acknowledged IT Returns for the last 2 years and bank statement of the primary account of the last 6 months

HSBC Personal Loans-Terms & Conditions

  • The maximum amount of loan that can be sanctioned is RS 15 lakhs. Some selected customers can be eligible for the loan up to the amount of RS.30 lakh based on the internal credit policy of the HSBC bank
  • The loan is offered on the basis of the tenure of the loan and the fixed rate specified. The terms and conditions on which the loan is offered to the customers are clearly stated in the agreement of loan.
  • Before signing in the loan agreement the customer should read the loan agreement carefully and should ensure that the processing fees, interest rates and the prepayment charges are clearly stated.
  • The customer can refer to the bank website  under the section marked as ‘LOAN SERVICE CHARGES AND FEES’  for service charges (including prepayment charges)applicable to the personal  loan offered to him before disbursement.
  • The customer can pre-pay the loan after 6 months of loan disbursement after giving the written instructions to the bank.
  • Interest on the Personal loan account is calculated on the daily basis and is payable under the system of EMI i.e. Equated Monthly basis on the due date.
  • The loan EMI’s can be paid through ECS {Electronic Clearing System} by giving the standing instructions to the bank on the HSBC account held by the customer.
  • The customer is required to pay his EMI’s on the due dates as mentioned. Non-payment of the dues may attract the impact on the customer’s credit which will not be limited only to the:-
  1. The credit rating done by the CIBIL.
  2. The impact will be on the other credit facilities offered by the bank.
  3. The bank will be bound to appoint the recovery agency to recover the due amount.
  • The customer can visit the bank site at to know the detail terms and conditions before giving any personal loan requests.
  • The HSBC bank will inform its customers one month prior of making any changes and amendments in its terms and conditions.
  • Change in the rate of interest totally depends on the sole decision of the bank.

Disbursal of the HSBC Personal Loan

The personal loan amount should be disbursed within the 30 days of sanctioning of the loan amount. The sanctioning of the Personal loan totally depends on the sole decision of the bank. The bank can also decline the drawdown of the loan amount at any point of time.


  • The loan Is required to be paid in EMI’s (Equated Monthly Installments). The bank is required to inform the borrower about the installment amount and the date of payment before the due date.
  • The monthly installment amount would include the Principal amount and the interest rate for personal loans which are payable in EMI’s as agreed in the loan agreement.
  • The borrower has to pay the entire balance amount which he owes to the bank after the payment of the final installment as informed by the bank.
  • The applicant is required to pay all the installments irrespective of the fact he has withdrawn or not the amount held in the nominated account.
  • The bank informs the borrower the mode of payment of the installments to repay HSBC personal loan amount.
  • The borrower has to respect the instructions given by the bank and should make sure the following points:-
  1. The bank account which is designated by him has the sufficient balance.
  2. The borrower cannot issue the stop payment instructions for any cheque issued towards the payment of the loan EMI’s.
  3. The borrower cannot change or alter any payment instructions himself.
  4. The borrower cannot change the account which is assigned for the repayment of the loan unless he pays the swapping charges as stated in the tariff sheet in the agreement


  • If the applicant fails to pay the installment amount on or before the due date the outstanding loan amount and all the interest accrued becomes payable immediately. The borrower is required to pay the fees as stated in the tariff sheet.
  • If the borrower is at default in paying the minimum amount on or before the due date or does the breach of contract as agreed upon then the bank sends the reminders for payment through SMS, E-mails, telephone, fax, or post and also sets the collecting parties for the reminders, follow-up and collect the due amount.


  • The borrower can foreclose the loan account post 6 months from the disbursement of the loan providing the bank with the written notice and paying the prepayment amount as agreed upon in the agreement.
  • If the prepayment amount is paid through cheque then the prepayment comes into effect only when the cheque is cleared.
  • If the existing borrower applies for the top-up loan and the bank sanctions the same then the loan disbursed by the bank will be first utilized to clear the outstanding loan amount in the existing Personal Loan and then the balance amount will be disbursed to the borrower.


  • The borrower agrees to the bank decision of providing his or her personal details to the third party for obtaining additional services without any prior consent or authorization given by him to the bank.
  • The borrower agrees upon the bank decision of providing his credit details or any defaults committed by the borrower in fulfilling the bank criteria as specified in the agreement with the other credit bureaus or agencies. These agencies can further process the data and information gathered and can share it with the other credit guarantors.
  • Bank is required to provide the information regarding the credibility of the borrower to the credit information company under the Credit Information Companies Act of 2006.
  • For all the Personal accounts where the correspondence of the borrower is withheld due to non-delivery of the documents the bank makes the required attempts to update the correct address details of the customers. If the customer’s details are not available within the 30 days the bank can close the operation of the account until the bank records are updated with the correct address or the customer himself confirms the present address to be true after providing the residential address proof.
  • The bank does not provide any kind of personal loan to the customers for utilizing it under the liberalized remittance scheme.

Know Your Customer

According to the governing bank policies, the customer is required to furnish the Know You Customer Documents (KYC) at the time of opening a new account or as and when required by the banks to offer personal loans. The bank reserves the right of the customer to operate the existing or newly opened account if the customer fails to fulfill the requirements specified by the bank.

FAQ’S On HSBC Personal Loans

1. Who is eligible to apply for this personal loan?

A. HSBC bank is currently providing personal loans to its existing customers.

2. What documents are required for applying for the HSBC personal loan?

A. The documents required for applying for the loan are:-









Voter’s id card

Voter’s card

Driving license

Driving License



Government employee id card

Ration card

Defense id card

Society outgoing bill



PAN card

Electricity/telephone/water bill


Ration card

Gas bill


Aadhar card

Property tax bill


NREGA card

Domicile certificate with address issued by the municipal corporation.


Registered rent/lease agreement

The financial documents required are:-

  1. Latest salary slip{mandatory}
  2. Bank statements for the primary accounts for the last 3 months.
  3. The income tax returns for the latest year.
  4. Latest form 16 [optional]
  5. P&L account and balance sheet for the last two years audited by the C.A.
  6. Acknowledgment for the It returns for the last 2 years [ mandatory]

3. Is the HSBC personal loan facility available in all the cities?

A. The HSBC offers personal loans in cities like Ahmedabad, Bengaluru, Chennai, Chandigarh, Hyderabad, Delhi, Cochin, Kolkata, Ludhiana, Mumbai, Pune, Thiruvananthapuram and Vadodara.

4. How much can the customer borrow?

A. The HSBC offers personal loan currently between the ranges of Rs.75000-Rs.200000.

5. What are the costs associated with availing the HSBC personal loan?

A. The customer is required to pay the processing fees along with the servicing interest on the loan.

6. Can I change my HSBC personal loan repayment instrument?

A. Yes, the borrower can change the loan instrument issued to the HSBC for paying the EMI’s for the personal loan.

7. How will I receive the disbursed amount?

A. The disbursed amount is credited to the borrower’s account as mentioned by him or her in the HSBC personal loan application.

8. How can I avail of the partial disbursement?

A. The loan can only be disbursed in one go. Partial disbursement of the loan is not allowed.

9. How is the EMI calculated?

A. The EMI is calculated on the basis of the rate of interest as fixed at the time of the loan application.

10. What happens if the customer misses the EMI?

A. If the customer misses the EMI the non-payment will have the impact on the credit rating of the customer, he will also have the impact on the other credit facilities provided by the HSBC and the bank can also send recovery team for recovering the dues.

11. Do I have an option of pre-closure of the HSBC personal loan?

A. Yes, the borrower can foreclose the loan account post 6 months from the date of disbursement of the loan after sending the written intimation to the bank.

12. Once the HSBC personal loan is repaid and loan outstanding is cleared does the loan send me the confirmation?

A. Yes, the bank sends the No Due certificate on the closure of the loan.

13. Can I make the partial repayment of the HSBC personal loan?

A. Yes, the borrower can repay the 20% of the original loan every year maximum upto 2 transactions per year.

14. Will my EMI change if I make the partial repayment?

A. The borrowers have the option of continuing with the same EMI and repay the loan earlier or can reduce the EMI with the same tenure.

15. What is the maximum and minimum tenure for HSBC personal loan?

A. The minimum tenure is 12 months and the maximum is 36 months.

EMI Calculator for Personal Loan

  • PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget.
  • Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Apply For an HSBC Personal Loan-Online

HSBC personal Loan can be availed through online channels. The HSBC personal loan online application process is simplified -

​Visit the website @ Paisabazar.com to apply online. After satisfying that the customer matches the eligibility criteria, the loan amount is inquired. The online application facility beats branch application in terms of ease and comfort. The online medium of application cuts down on a manual visit to the branch as the application forms soft copy is available online. This copy is similar to the one issued in the bank’s branch.

There are mandatory fields in the application form which are compulsorily filled like the applicant’s personal details, occupational details, loan details, income details, etc. these details serve two purposes. One, they help the bank to establish the identity of the applicant. Two, they help the bank to assess whether the applicant meets the basic personal loan requirements as per the list of eligibility criteria laid down by the bank. After both the objectives are met and the person successfully qualified for the personal loan from HSBC, the loan will be sanctioned.

HSBC Bank Personal Loan
(5/5 ) 2 Reviews
Personal LoanPersonal Loan


The HSBC personal loan scheme is very good and without any additional charges, unlike many banks. The agents in the bank are also well-trained professionals who are well versed with all the relevant information. My HSBC personal loan scheme got appro..Read more...

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Posted on: Jan 17 , 2017
Personal LoanPersonal Loan


HSBC is a very good bank that provides products but the services are little slow. I had applied for my loan scheme 15 days back. My loan got approved instantly but I haven’t received my disbursal amount yet.

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Posted on: Jan 11 , 2017