HSBC Bank Personal Loan Preclosure Charges

Any type of loan availed is repaid to the bank/financial institution in EMIs within a fixed time frame, which usually ranges from 1 to 5 years. In case a borrower wants to foreclose or preclose his personal loan, the remaining loan amount is settled in one single payment instead of paying it back in multiple EMIs over the agreed period of time.

HSBC personal loan can be prepaid after 6 months of disbursement of the loan. The loan can be prepaid following intimation in writing and in accordance with the prepayment amount confirmation given by the Bank. Under the 30 Day Service Pledge programme, a customer can close the loan within 30 calendar days of the loan disbursement date, subject to the terms and conditions of this programme. Any payment which is done in this manner attracts a prepayment charge of up to 5% of the prepaid amount.

The borrower can foreclose the HSBC personal loan by giving a notice in writing and paying in accordance with HSBC rules of prepayment/foreclosure, in any of the modes of payment acceptable to HSBC along with charges if any. If prepayment/foreclosure is done by cheque, the payment will take effect only when the cheque is cleared. The original documents of the borrower submitted to HSBC, are returned within 15 days of satisfactory loan closure, as per the conditions of the loan agreement signed by the borrower.

Conclusion

HSBC provides various types of loans and personal loan is quite popular among them. The borrower has the option of foreclosing his/her personal loan before the completion of loan period in adherence to the foreclosure guidelines and rules of the bank.