But before you apply for a loan, there are some things you need to consider.
You can check to see what the rates are for the different types of loan we offer. Then you can work out how much your repayments could be and how that may impact your budget.
If you’re looking at a personal loan with a variable interest rate, remember the interest rate could go up or down. If it were to go up, could you still afford the repayments? If not, consider reducing the loan amount or extending the loan term.
The loan term affects the amount of interest you’ll pay and the overall cost of the loan. The longer the loan term is, the less your regular repayments will be. But you'll likely end up paying more interest over the course of the loan.
Loans are advertised with a representative APR (Annual Percentage Rate) that allows you to compare what's on offer from different lenders. However, the final interest rate you'll be offered will be determined by:
Look for any extra charges you might have to pay when taking out the loan. For example, some lenders may charge a negotiation fee. You might also have to pay a late fee if you don't pay your loan on time. These, together with the interest rate, can make a big difference to the overall cost of the loan.
Some lenders will charge you a fee for paying off your loan early. If you feel this is something you might want to do, then finding a loan without this fee could be a key requirement.
With an HSBC personal loan, you can make additional payments to help pay it off sooner. There's also no charge if you pay off the entire loan in one go.
A personal loan isn’t the only choice available. Are you able to delay the spending and take time to save the money? Even if you can’t save up the whole amount, saving a portion of it will put you in a better position.
A secured loan is one where you use an asset (such as a car or property) as security for a reduced interest rate. This asset will be at risk if you can’t repay the loan. With an unsecured loan, you don’t provide security, but the amount you can borrow is typically smaller.
HSBC offers secured loans and unsecured loans.
