HSBC Review

Company Information

HSBC was founded in Hong Kong in March of 1865 to provide financial needs internationally. More than a century later, they have become one of the largest banking and financial institutions in the whole world. Their global businesses include Wealth and Personal Banking, Commercial Banking, and Global Banking & Markets. They are present in 64 countries in Europe, Asia, the Middle East, Africa, North America, and Latin America.

HSBC’s presence in the Philippines can be traced back to 140 years ago. Now they have several branches across more than 7,000 islands and have even locally incorporated the HSBC Savings Bank located in the biggest economic areas of the country in Metro Manila, Cebu, and Davao. 

The main office of HSBC in the Philippines can be located at HSBC Centre, 3058 Fifth Avenue West, Bonifacio Global City, Taguig City. For customer service concerns, their team is available 24/7 and can be contacted at:

• (02) 8858-0000 or (02)7976-8000 from Metro Manila

• +1-800-1-888-8555 domestic toll-free for calls outside Metro Manila through PLDT landlines

• +800-100-85-800 from overseas

• + (International Access Code) 800-100-85-800 international toll-free for selected countries/regions

Types of Products and Services Offered

Personal Loan

A Personal Loan is meant to address a person’s needs for tuition fee payments, medical emergencies, starting a small business, family travel, etc. HSBC provides personal loans that are approved within just 5 banking days and convenient payment channels.  

• Loan Amount: Php30,000 to Php500,000 or 3x monthly gross salary, whichever is lower
• Loan Term: 6 months to 36 months
• Interest Rate: As low as 0.65% add-on rate per month / Annual Effective Rate of 14.29%
• Other Fees and Charges:
  • Processing Fee: PHP1,500 (deducted from loan proceeds)
  • Late Payment Fee: 36% per annum on overdue payment
  • Amendment Fee: PHP500.00 per amendment after drawdown (for modification of loan details)
  • Breaking Cost: To be computed as described in the HSBC website and the HSBC Easy Guide to Bank Services and Charges (upon loan pre-termination)
  • Overdue Interest Charge: 36% per annum on all due installments
  • Documentary Stamp Tax (DST): 0.75% of the drawn loan amount (deducted from loan proceeds). Loan amounts of up to PHP250,000, used for personal purposes, are exempt from DST.

Home Loan 

There are currently 2 Home Loan options available with HSBC, and loan applicants will be able to choose which ones are applicable for their needs. The 2 loan home loan types are Home Mortgage Loan (HML) and Home Equity Loan (HEQ). The difference between the two are discussed below:

Home Mortgage Loan (HML) 

• Loan Amount: Php700,000 to Php50,000,000
• Loan Term: 12 months to 240 months (or up to 65 years of age of the loan applicant, whichever is shorter)
• Loan Purpose:
  • Purchase of owner-occupied residential property. Occupants may include applicant(s)’ immediate family: spouse, children, parents, siblings, in-laws.
  • Refinance of residential mortgage with another financial institution (you have an existing home loan with another financial institution, and you will transfer the loan to HSBC)
  • Construction on / renovation of / addition to existing residential property
  • Reimbursement of purchased property

Home Equity Loan (HEQ) 

• Loan Amount: Php700,000 to Php30,000,000
• Loan Term: 12 months to 120 months (or up to 65 years of age of the loan applicant, whichever is shorter)
• Loan Purpose:
  • Multi-purpose loan
  • Refinance of a previous loan from another financial institution used for personal expenditure or for investment
  • Loan proceeds will be used for purchase, renovation or construction of a secondary residence which is different from the loan security

The amount of the loan that will be approved and the term will be based on the bank’s credit evaluation that is typically based on your credit rating, the capacity pay of the borrower, and the value of the property that will secure the mortgage.  

Personal Loan (Employee Privilege Plan)

• Loan Amount: Php10,000 to Php1,000,000 or 6x monthly gross salary, whichever is lower.
• Interest: Updated interest rates are available with the HR personnel or the Relationship Manager
• Applicable Fees and Charges:
  • Documentary Stamp Taxes: PHP1.00 for every PHP200.00 of loan drawn for loans over PHP250,000 and/or loan purpose is for business use.
  • Amendment Service Fee: PHP500 for any adjustments made (after loan drawdown) on the account terms (i.e. loan amount, tenor, rate, change of payment method, change of due date)
  • Overdue Interest Charge: 36% per annum on all overdue instalments.

Eligibility

For employees to be eligible of the EPP, he or she must:

• Be a permanent resident of the Philippines for at least 3 years in any of the areas where the EPP Company maintain offices
• Be above 21 but below 60 years old upon loan maturity
• Have a minimum gross monthly income of:
  • PHP10,000 for applicants in Luzon and Metro Manila
  • PHP8,000 for applicants in Visayas and Mindanao
• Must be a regular employee of the EPP Company
• Have any 2 of the following: Residential landline, Office landline, Mobile Phone Number

Requirements

• Photocopy of their valid Gov’t ID indicating the date of birth and nationality (ID and picture should be clear) (Details, picture and signature should all be clear)
• Latest Income Tax Return (ITR)2316 or any valid ITR alternative
• Signed 3-in-1 EPP application form
• Signed Terms and Conditions with Global Consent Form

Asset Link 

The HSBC Asset Link allows you to leverage your deposits and investments on a low-interest credit line but still allows your assets to continue earning interest. 

The percentage of the credit line that you can avail of will depend on the type of security you have. Percentage details are as follows:

• 90% – Savings, Current or Time Deposit accounts with HSBC 
• 65% – Investment in government securities
• 50% – Investment in bonds and money market funds
• 50% – Third-party balanced/ equity funds, listed corporate bonds, and the current value of your investment-linked insuranceThird party balanced/ equity funds, listed corporate bonds, and current value of your investment-linked insurance

• Loan Amount: 
  • PHP80,000 (For HSBC Main Bank Clients) to PHP20 million (or its equivalent in foreign currency)
  • PHP40,000 (For HSBC Savings Bank Clients) PHP20 million (or its equivalent in foreign currency)
• Loan Term: 1 month to 12 months
• Applicable Fees and Charges: 
  • Processing Fee: PHP2,500 (waived provided the loan is outstanding for 6 months) 
  • Documentary Stamp Tax (DST): PHP1.50 for every PHP200.00. Payable upon drawdown and may be debited from the drawdown proceeds.

Eligibility

All HSBC Advance and HSBC Premier Clients can apply for an AssetLink. However, non-residents will only be eligible to apply for foreign currency loans, which will be subject to a different set of requirements. 

Requirements

• Application Form
• Signed Terms and Conditions with Global Clause Consent Form
• Notarised Promissory Note/Disclosure Statement
• Deed of Assignment
• The latest copy of the Income Tax Return (ITR) or BIR Form 2316 (W2) or documents allowed by BSP (Bangko Sentral ng Pilipinas) instead of ITR may be required unless otherwise specified by local regulations.
• Foreign Currency Declaration Form (if security, ALN line, or both is/are in foreign currency)
• Proof of marital status (for widow/divorced where spouse will not sign for marital consent)

Credit Cards

HSBC provides a card that opens up a world of rewards for all of its cardholders. If you are still undecided on which card you wish to apply for, here are the basic information on HSBC’s credit cards:

Why Choose HSBC

HSBC has long stamped its place in the world of banking and financial services. But for customers who are still thinking about signing up with HSBC, here are some reasons why they should choose HSBC. 

Allows for Fast Approval

Most banks take several days to approve a loan, but with HSBC, it will only take up to 5 banking days, provided that all the required documents are entirely submitted. 

Offers Convenience in the Repayments

There are several ways for customers to pay for their loan repayments. It could either be through an Auto Debit Arrangement (ADA), salary deduction, or through any of the HSBC payment centers located in all the different branches in the Philippines. 

Personalized Payment Terms

Pay your loan amortizations based on what is most convenient for you. The maximum term will depend on the kind of loan you wish to apply for. 

How To Sign Up

Signing up for a loan can be done through the phone, online, or any of their branches. As long as you have checked whether you are eligible for a loan, you can prepare the loan requirements in advance to ensure that the process is swift. 

Personal Loan

Customers can apply for a personal loan through the nearest bank. Another way to apply for a loan is through the phone by simply calling (02) 8858-0000. 

Home Loan

To start your journey to owning your own home, you can create your loan application through two steps:

Apply by Phone

The Loan Specialists of HSBC will be happy to assist you. Contact them through any of the numbers shown below:

• (02)8858-0000 or (02)7976-8000 (Metro Manila) 
• 1-800-1-888-8555 (Provincial)
• +632-8580000 (Abroad)

Apply Online

Employee Privilege Plan

To be able to proceed with this loan application, you can accomplish the following:

• Fill out and submit your application form (You may contact your Relationship Manager for access to application form)
• Submit all the requirements together with your application form through your HR personnel or your Relationship Manager.

Asset Link

To be able to proceed with an Asset Link application, customers can directly visit any branch nearest them or they can contact their Relationship Manager for premier clients.

Credit Cards

Conclusion

Customers who choose to bank with HSBC are assured of a good working relationship and better banking offers and privileges. They have not made a mark in the banking industry by circumstance alone but through proven service to their international market.