HSBC Personal Loan Review

When reviewing details on HSBC Personal Loan, you may sometimes see it referred to as HSBC Personal Instalment Loan. Although HSBC ostensibly renamed the former to the latter in 2020, the terms refer to the same product and are still used interchangeably on HSBC’s website. For ease of understanding, we will use HSBC Personal Loan, as this term still appears at the top of the product page.

Now, let’s dive into the HSBC Personal Loan. With competitive rates and zero processing fees during this promo period, the HSBC Personal Loan lets you borrow from up to 4-8x your monthly salary. Compared to similar products on the market, its minimum annual income requirement for foreigners is noticeably lower, at only $10,000 above the sum required for Singapore citizens and Permanent Residents.

» MORE: Compare the best car loan interest rates in Singapore

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Low minimum annual income requirement for foreigners. If you’re a foreigner working in Singapore and need some cash to cushion high expenses, HSBC Personal Loan can be a lifeline. With a much lower required minimum annual income of $40,000 compared to the more standard amount of $60,000, the HSBC Personal Loan presents a much more affordable option for foreigners looking to borrow.

Get credit limit up to $200,000. Your credit limit, which determines how much you can borrow from the bank, will depend on your annual income. If you earn between $30,000-119,999 per annum, you can loan up to 4x your monthly salary. Customers with an annual income of $120,000 will be able to borrow up to 8x their monthly salary.

Flexible loan terms. HSBC’s loan tenures are between 1-7 years. This gives you flexibility on ways to structure your loan, since your monthly repayment sum depends on the length of your tenure. For example, if you’re looking to take out a loan of $20,000 over a year, you’ll be paying $1,703 a month. If you stretch your loan over 7 years, however, you’d be looking at a much lower sum of $274 a month. One caveat is that a longer term loan translates to paying more overall, since your repayment will go from $20,436 for a 1-year loan to $22,964 for a 7-year loan.

Foreigners can only borrow 1x of their monthly salary. Although HSBC Personal Loan’s required annual minimum income is relatively low for foreigners, there is one drawback. While Singapore citizens and Permanent Residents can borrow 4x or 8x of their monthly salary, foreigners can only borrow 1x of their monthly salary. This is regardless of their earning power, as this is a blanket rule that applies to all foreigners.

» MORE: The best credit lines of 2025.

An annual income of $120,000 is needed for higher credit limits. How much you are able to borrow from HSBC depends on your annual income. If you need to borrow a large sum, say, up to 8x your monthly income, you’ll need an annual income of $120,000 and above. If not, you’ll only be eligible for loans up to 4x your monthly salary. Banks set credit limits as a form of risk assessment, to minimise defaults and payments uncollectable. The Monetary Authority of Singapore (MAS) also has regulatory guidelines in place to reduce bad debt. The regulatory credit limit for people up to the age of 55, with an annual income between $30,000-$120,000 is up to 4 months’ income. However, MAS notes that it is possible to exceed the regulatory credit limit, if the borrower is refinancing an existing debt owed to another financial institution.

Annual fees cannot be waived after your first year. Though your annual fee of $120 is waived for your first year, you must continue to pay it for the subsequent years of your loan tenure. If unaccounted for, this can eat into your overall budget and reduce your savings.

» MORE: The best debt consolidation loans in Singapore.

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Keeping an eagle eye on your repayment due date is a good way of ensuring you will never miss a payment due. In general, your first repayment due date will be one month from your loan approval date. HSBC's notification letter should state the confirmed repayment due date, as well as whether it will fall on the same date each following month.

The monthly repayment amount will be deducted from your HSBC repayment account each due date. There are multiple ways you can deposit funds into your repayment account:

• By cheque. Drop your cheque in the Cheque Deposit Box at any HSBC branch. (Up to 2 working days may be needed for your cheque to clear.)

• By cash. Making your repayment via cash is easy. Simply use any Cash Deposit Machine found at any HSBC branch.

• By bank transfer. Transfer funds from your other bank accounts to your repayment account via internet banking, phone banking or via HSBC's over-the-counter banking services.

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Singapore has been making regular appearances on The Economist's biannual Worldwide Cost of Living survey as one of the world's most expensive cities to live in. So it's no surprise that there are plenty of reasons why somebody might need a loan. Here are some of them:

• Consolidating unsecured debt from credit cards, credit lines and personal loans with a lower interest rate.

• Paying for big-ticket expenses, such as weddings or a new car. (An average wedding in Singapore costs about $30,000, though elaborate ceremonies can cost up to $90,000.)  

• Home renovation expenses. If you have a 4-room flat, you’ll need upwards of $28,000 to renovate your new home.

• Medical expenses. Whether it’s urgent dental surgery you need, or simply some cash to tide you over while you recover from medical treatment, a loan can go a long way in helping to provide a financial cushion.

• Funeral expenses. Funeral costs in Singapore typically range between $4,000-11,000. This can add financial stress on top of the immense emotional pressure, which a loan can help relieve.

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HSBC’s eligibility requirements for the HSBC Personal Loan are relatively easy to meet. To qualify, you must be:

• Between 21-65 years of age

• Either a salaried Singapore citizen or Permanent Resident with an annual income of $30,000

• Or a self-employed or commissions-based Singapore citizen or Permanent Resident with an annual income of $40,000.

• Or a foreigner with an annual income of $40,000 who has a work pass with at least 6 months’ validity

Applying via SingPass is the surest way to a smooth and seamless application, if your relevant financial information is up to date on MyInfo.

If HSBC decides that your MyInfo contains insufficient information for them to conduct their assessment, they will ask for the following documents:

For salaried employees:

• Completed and signed Letter of Instruction

• Front and back of your NRIC

• Notice of Assessment and CPF Statement

• Computerised payslips from the last 3 months, for those whose monthly income exceeds $6,000

• Proof of billing address

For commissions-based employees:

• Completed and signed Letter of Instruction

• Front and back of your NRIC

• Notice of Assessment and CPF Statement

• Proof of billing address

For self-employed individuals:

• Completed and signed Letter of Instruction

• Front and back of your NRIC

• Notice of Assessment and CPF Statement

• Latest 2 years’ Notice of Assessment, if the previous item was not provided

• Proof of billing address

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Now that you know more about HSBC Personal Loan, it’s time to find out how it stacks up against some of its competitors. 

Standard Chartered CashOne Personal Loan

» MORE: Read our CashOne Personal Loan review.

Trust Bank Instant Loan

»  MORE: Read our Trust Bank Instant Loan review.

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