HSBC PERSONAL LOAN - Lowest Interest Charges! Is there a Catch?

Guys, for today's video, we're going to talk about a personal loan coming from HSBC Bank. So, what does a personal loan with HSBC Bank have? Well, they're advertising that the monthly add-on interest rate is around 0.65%, meaning that the monthly add-on interest rate is less than 1% for a personal loan. If you want to know how much it is, what are the requirements, and how much it will cost, come with me and let's talk about it. Feedback and let's discuss, coming right up. Hi guys, this is Pat, and you're in Pat Tintos Review TV. If you're new here on my channel, I do reviews about entrepreneurship, small business, and personal finance. If you have experience, I made videos and playlists that you can see up here. If you're new here on my channel, you may want to consider subscribing to my channel. Okay, so HSBC is a Hong Kong-Shanghai Banking Corporation, HSBC. Well, they previously offered savings account, credit card, and home loan, and personal loan. So, I was given two credit cards from HSBC, one classic and then gold. Then eventually, it merged and became gold. HSBC's head office is in Manila, but they also have branches scattered all over the Philippines. However, if you're a HSBC client before on their banking, their savings accounts were transferred to HSBC Philippines. So, they're the ones managing it now. Okay, so personal loan, that's what we're going to talk about today. Before that, we need to know what HSBC advertises on their website about personal loan. Okay, so it says here, HSBC personal loan, turn your house into the home of your dreams. Simply apply for a HSBC personal loan installment loan. So, you'll just use it at home. That's what it says. As low as 0.65% add-on rate per month. See, that's the lowest they have, 0.65%. Features and benefits. So, it says here, fast approval. Wow. Find out if your loan has been approved in five working days after submitting your complete application documents. Next, personalized term. You can choose to repay your loan in 6, 12, 18, 24, and 36 months. Which is almost most of the time. Convenient payment channels. Okay, so you can do post-dated checks, and you can also do over-the-counter at payment centers that accept HSBC payments. Loan fees and rates. So, these are the fees that will be deducted from your loan when you apply. So, there's a processing fee of 1,500 pesos. There's also a documentary stamp tax that is worth 0.75% of the drawn amount. For example, your loan amount is about 250,000 pesos. Then, that's where you'll get 0.75% of the documentary stamp tax. But if it's less than 250,000 pesos, well, you're exempted from paying the documentary stamp tax. And then, if you want to change your loan contract, there's an amendment fee of 500 pesos. And also, if you're late, which is you won't be late, there's a 36% per annum on overdue amount. So, that's what we'll see on the website of HSBC for the personal loan. Now, some details that we need to discuss. Okay, so what are the minimum and maximum amount that we can borrow from HSBC? So, the minimum amount is 30,000 pesos. And the maximum amount is 500,000 pesos or three times your gross salary, whichever is lower. If it's lower, let's say it reaches 750,000 pesos, the maximum amount that you can borrow is 500,000 pesos. Something like that. So, there's a sample calculation coming from HSBC for their personal loan. The loan amount is 120,000 pesos. The loan term is six months. And the monthly amortization is 21,063 pesos and 0.03 centavos. So, if we calculate that, 21,063.03 times six months, our total repayment is 126,378.18 minus the principal amount of 120,000. The interest rate of our loan is 6,378.18. Let's divide that by 120,000. It comes out to 5%, 5.31% for six months. And we'll get the per annum and monthly. So, let's divide that by six so that we can get the monthly add-on interest rate. So, it comes out to 0.88% or 0.89% monthly add-on interest rate. Let's multiply that by 12. It comes out to around 10.63% annual percentage rate. It's low because it's only 10% annual percentage rate. Especially if you got the lowest offer of 0.65%. So, who can apply to HSBC for a personal loan? Employees and self-employed can apply. For employees, you just need proof of identity, proof of income, and proof of residence. Also, you need to be a resident for at least three years here in Metro Manila, Bulacan, Pampanga, Metro Cebu, Camite, Davao City, and Rizal. You need to be 21 years of age upon loan application. Your monthly gross income is at a minimum of Php 14,000. Which is, a lot of employees nowadays, their salary is more than Php 14,000. And then, if you're self-employed, your minimum gross income is Php 50,000. And then, if you want to apply, you may need to go over to the branches of HSBC. Also, there's a note from HSBC that, of course, the longer the term, the higher the interest you're going to pay. So, you need to think if it's okay for you to pay a higher interest, or if it's okay for you to pay a lower interest on a monthly basis. So, now that we've seen the calculation of HSBC, well, how does HSBC compare with the personal loans that we've reviewed? So, HSBC will appear first in our review of personal loans. At 10.63%, BPI came first. So, BPI came second, followed by CID, PBO, Metrobank, Union Bank, Personal Loan, E-Suez, EON Credit, UREBI Credit, and then the credit cards. For our question of the day, what do you look at when taking out a loan? Do you focus more on the total interest that you're going to pay, or the monthly amount or monthly amortization that you're going to pay? Of course, you'll look at if you can afford it or not, right? So, which one of the two? Let me know in the comment section below so you have a chance to win Php 1,000 in our weekly GCash giveaway. And of course, don't forget to add the hashtag GoTo75ksubs and like and subscribe here on my channel for your chance to win a cellphone in our 75k milestone. That's all for today's video. But before we end this video, let's give a shoutout first. And shoutout to... Shoutout to LDV Legas P6921. He said, Sir, thanks for your big help. I'm also stressed with the waves. How can I avoid the harassment of the waves? And LDV Legas P6921, thank you for watching and supporting my videos on my channel. I hope you can overcome your hardships with online lending apps. That's all. Thank you so much. So, thank you for watching, guys. I hope you like this video. Leave a thumbs up. And if not, there's no problem with that. But continue to support me by subscribing to my channel by clicking the subscribe button. 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