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HSBC loans uk simplified

by Jim ONeil on October 26, 2010

in high street loans

HSBC is one of the most respected and well known finance companies in the world today. In UK alone, thousands of individuals use the services and the financial products which are offered by the company. With the high demand of unsecured loans in UK today, the company also offers unsecured loan products to their clients.

With the large number of companies and lenders that offer these loans today, it sometimes becomes confusing for borrowers to decide which would be the best option for them.

HSBC offers tailor designed unsecured personal loans to their clients. The funds that are offered by the company are between GBP 7000 and 15,000 like most other loan companies today. These loans can be used for a wide range of purposes like home improvement, car purchase, repairs or replacement, debt consolidation, weddings, education, travel etc.

Features of the HSBC loan

HSBC offers the option of applying online for the loan through their internet banking. One of the most important things to keep in mind that is that company only offers their unsecured loans to their existing clients and not for new borrowers which is one of the main drawbacks. Also the typical APR for the HSBC loan is 9.9% which is quite high compared to some of the other unsecured loan options which are available currently in UK. HSBC offers an instant decision to the applicants with no requirement at all for any paper work.

Once approved, the funds are transferred immediately in the account of the borrower whether it is day or night. Even those who already have a personal loan with HSBC can apply for an unsecured loan. The repayment term for these loans is between one five years for loans up to GBP 15,000. The loans are a fixed interest rate loan which means that the instalments would remain the same throughout the loan term.

However, these unsecured loans are only available to those who are existing account holders in the bank and maintain a minimum of GBP 700 in their account each month. The borrowers would have the option to defer their monthly payment for up to 3 months at the beginning of the term. Borrowers can also take a payment holiday for every January throughout the term of the loan. However, the interest would be calculated for the entire term of the loan.

The unsecured loans offered by HSBC is not really a cost effective option for borrowers since there are quite a lot of other loan deals available in UK today at lower rates. However, these loans can be useful for the existing customers of the company that require funds on an immediate basis and do not have time to apply for a loan anywhere else.

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