HSBC to give 30% cash refund on loan interest

HSBC to give 30% cash refund on loan interest


HSBC is offering customers who take out a personal line of credit or personal loan, from Monday until June 15, a 30 per cent cashback on the interest charged for a year.


The cash will be paid out each quarter for a one-year period and deposited directly into the customer’s loan repayment account.


New customers who sign up before the cut-off date will also get $30 worth of shopping vouchers.


HSBC said its 30 per cent cashback is the most attractive rebate on loan interest in Singapore.


The bank’s consumer banking head in the Republic, Ms Wendy Lim, said: ‘The quarterly cashback payouts are also the most frequent in the market.’


HSBC’s prevailing board rate is 16.5 per cent a year for a personal line of credit and 7.5 per cent for personal loans.


Depending on the loan tenor, the effective interest rate for personal loans ranges from 12.93 per cent to 13.8 per cent a year.


British bank HSBC’s personal loans can be taken for a minimum period of two years and up to seven years, the longest repayment period in the market.


Singapore‘s OCBC Bank offers an 8 per cent cash rebate on interest incurred over the year on its easiCredit product, a personal line of credit launched in 2005.


The rebate applies only when the full-year interest amount exceeds $840. However, the scheme is a permanent one.


Source: Straits Times


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