Personal Lending Solution

Although loan services are now accessible via many channels, obtaining a best-fit loan can still be a complex and time-consuming process. The easiest way to get started is to take a few moments to establish exactly how your loan will improve your cash flow and enrich your life. Below are some tips to help you choose the right plan.

 

Which kind of personal loans best suits you?

A comparison of Tax Loan with Instalment Loan

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A wedding trip or an overseas wedding ceremony?

When it comes to getting married, not only love but money is also a prerequisite.

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We all want to be our own boss.

But do you know how to start a business?

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Everyone is unique, so do their needs? Borrowers should understand the features of different loan products to select the “right” one. What are the choices among personal loans? How to calculate the interest? Which kind is most suitable for you?

Choose the right loans to suit different purposes

If this is your first time borrowing or if you prefer stability, fixed loan is relatively simple and more suitable for you. Fixed loan provides a fixed repayment period and monthly repayment amount, so borrowers can reduce the risk of going over budget. The most common fixed loan schemes include instalment loans, tax loans, credit card cash instalment plans, etc. Their repayment periods, loan amount limits and fees are different so that different purposes and requirements are satisfied.

Instalment loans: The monthly repayment amount is fixed. The loan amount could be 12 times the monthly salary of the applicant with repayment period of 6 to 60 months in general. Instalment loan may be more suitable for big ticket size spend such as renovation, continuing education, wedding or medical expenses, etc. In case you need more cash flow thereafter, some banks even offer a “loan redraw” service. Borrowers can simply redraw the repaid loan any time with no need to apply for a new loan again, thus saving valuable time.

Tax loans: Tax loans are seasonal products that are launched in tax season every year offering a lower interest rate than other loan schemes, but with a shorter repayment period, ranging from 6 to 24 months. Although the main purpose of a tax loan is for paying tax, some banks do not have any limits on the loan purposes and do not require applicants to submit tax returns. Another feature is that some tax loans allow borrowers to withdraw loans in 2 phases according to the tax due, thereby saving lots of interest expenses.

Credit card cash instalment plans: This loan allows borrowers to withdraw cash directly from their credit card account with a fixed monthly repayment amount and repayment period from 12 to 60 months. The cash withdrawal may be less than other loan schemes comparatively, with a cap up to the available credit limit of the applicant’s credit card. If the applicant does not want to open and deal with extra loan accounts, the credit card cash instalment plan could be a suitable choice.

Is simply choosing the longest repayment period a good idea?

An instalment loan may offer repayment period up to 60-month and you might think that to start with the longest period is a good idea as you could simply make early repayment anytime when you have spare money, thus allowing you to save expenses on interest. This may be a lousy idea as most banks will charge an amount equal to a certain percentage of the loan amount or a specific amount as the early repayment penalty. In general, banks use the Rule of 78 to apportion the interest and principal repaid for each monthly repayment. Although repayment amounts in each month are the same, the proportions of interest would be higher and those of the principal repaid would be lower during the early period. In other words, after repaying on time for a certain period, the outstanding interest amount may be relatively little. Borrowers may not save money or even lose more if they choose to make early repayment. This is because the outstanding interest saved may not be enough to cover the penalty. Borrowers are advised to ask the banks about the related expenses for early repayment, including the amount of principal not yet repaid, penalty for early repayment and outstanding interest. Then, they could decide whether to repay early but only after careful comparison and consideration.

In fact, some banks provide a cooling-off period. HSBC’s Personal Instalment Loan offers a cooling-off period of 30 days. In case applicants decide to cancel the loan within 30 days after the loan is approved, all they have to pay is the interest based on the number of day borrowed but no penalty on early repayment. Therefore, applicants’ expenses are greatly reduced.

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To borrow or not to borrow? Borrow only if you can repay!

 

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In recent years, overseas weddings which include a wedding ceremony and a honeymoon trip become more and more popular. But wait a moment, what we want to talk about is a wedding trip for a prospective couple only. If they have to invite friends and relatives to attend an overseas wedding ceremony, the expenses involved would be multiplied.

Price comparisons of different wedding trip packages

Let’s get back to the subject. Okinawa, Bali, Guam, the Maldives, etc. are all common wedding trip destinations. Many wedding planners or travel agencies offer packages with different price ranges depending on the destination, facilities, etc. Wedding trip packages usually include hotel accommodation for 2, a wedding venue with basic decoration, a wedding host and photography, while air tickets depend on package terms. The complimentary shuttle bus service, champagne toast etc. are usually for the prospective couples only, with extra charges levied on relatives and friends.

Comparisons of different wedding trip packages
Destinations Charges Main items included
Celeste Chapel, Okinawa Around HK$39,000 3 days and 2 nights
Round-trip economy-class air tickets for 2
Hotel accommodation for 2 nights with breakfasts
120 photos (beach, ceremony, church surroundings)
Rental of 1 set of bridal gown and groom outfit
Majestic Chapel, Bali Around HK$66,000 2-night hotel suite accommodation
Live music (violin and cello)
Flower girls and page boys in traditional Balinese costumes
Make-up and hairstyling for bride and groom
Rental of 1 set of bridal gown and groom outfit
300 or more photos (make-up, ceremony, inside and outside church)
Video recording of wedding ceremony with basic editing
Petal toss
White Arrow Chapel, Guam Around HK$41,000 4 days and 2 nights
Round-trip economy-class air tickets for 2 
Hotel accommodation for 2 nights with breakfasts
Hotel barbecue dinner for 2 
150 photos in wedding ceremony
Romantic Feather Toss
Four Seasons Resort at Maldives Landaa Giraavaru, Maldives Around HK$73,000 4 nights
Round-trip economy-class air tickets for 2 
3+1 night hotel accommodation with breakfast
Live music (Budo Beru drummer)
Bridal make-up and hairstyling
Rental of 1 set of bridal gown and groom outfit
Photo taking (1-1.5 hours)

Note: The above information is for reference only.

Overseas wedding trips usually involve arrangements for air tickets and hotel accommodation. Wedding planner with travel license can provide one-stop service for air ticket and hotel booking, so the prospective couple do not need to approach travel agency separately.

Check whether marriage registration is valid

Overseas marriage registration can be either symbolic or legally valid. The former is of course not legally binding, which means the couples have to make registration after returning to Hong Kong. In general, if the marriage registration is in accordance with local laws, it would be legally recognized in Hong Kong. However, the couples should also update their marriage status with the Immigration Department after returning to Hong Kong. Some countries or territories will handle legal registration for eligible couples only. For instance, in the Maldives, only nationals can be legally registered for marriage. Thus, wedding ceremonies of Hong Kong people in the Maldives are symbolic only.

Marriage registration procedures can be complicated or simple

Many countries require submission of lots of documents for legal registration. Other than the general identification documents, “certificates of absence of marriage record” as a proof of single and a translated copy or endorsement from the High Court or the consulate are also needed. This will take lots of time and effort and if you get help from wedding planner, there would be an extra charge of HK$3,000 or more. In countries where procedures are comparatively simpler, as in Guam, prospective couples only have to bring along English/ bilingual copies of their passports and birth certificates to local notaries for verification and submit application forms to relevant departments. Then, they can look for marriage witness recognized by the government, such as eligible pastor, to witness the ceremony and sign the marriage certificate. Finally handing over the certificate to the government for filing, then an official and legal registration is complete. But if the procedures are too complicated, why not do the registration in Hong Kong before going for a wedding trip? In this way, you can have both a legal marriage and a romantic wedding of your dream!

You may not want to delay your wedding due to insufficient fund, or your original plan of “wedding trip” may turn into an “overseas wedding ceremony” which make you over budget. Well, HSBC’s Personal Instalment Loan offers a repayment period of up to 60 months. All you need to do is choosing a loan amount that can provide the required funds for your wedding and suit your repayment ability. The approval time can be as fast as one minute if you have payroll accounts or income proof at HSBC*.

* The actual loan application approval date starts when the Bank has successfully input all the required information into the application evaluation system. Processing time may vary for some individual applications.

To find out more about personal loans, feel free to call us on 2748 8080, or apply online now.

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To borrow or not to borrow? Borrow only if you can repay!

 

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When your career reaches a bottleneck, with unclear prospects, those who have lots of great plans might consider a start up. However, being a boss is completely different from being an employee. You must have detailed planning to start with and then implement your plan step by step in order to achieve a successful business.

Self-questioning for a clear direction

Starting a business is not child’s play. You must ask yourself some serious questions before you take the leap. Is it just because you are stuck in your present job that makes you want to jump? How much do you know about the industry you plan to enter? Is your cash flow enough to support business operations in the early stages? Are you willing to work around the clock at maximum effort? Is your character suitable for starting a business or being your own boss? Do you plan sole-ownership or to establish a partnership with friends? Are you open for different opinions? All in all, you must understand clearly how much you are willing to sacrifice in order to start a business!

Assessing the business nature through market research

You may have a “mighty plan” but maybe others do too! Therefore, market research is a must. Firstly, research whether there are similar competitors already in the market. If the answer is “yes”, what exactly are their businesses and how do they operate? What are your advantages and disadvantages? If there are no competitors, think deeply why no competitors exist? In fact, does a potential market exist? Is the target customer group not large enough? Is the expected net profit not enough to maintain operations?

Assessing viability through budgeting

Capital is crucial for starting a business. For small businesses, expenditure should be closely monitored because every dollar counts. Budgeting starts with cost and required cash flow calculation, including stock ordering and monthly operating expenses (inventory, rent, wages, overhead costs, etc.). By comparing the investment with the expected return, payback period, credit, liabilities, etc, you can assess the viability of starting the business.

Take establishing a start-up company as an example. Monthly rent for a private office at co-working space can range from HK$5,000 to HK$15,000, depending on the size of the office and the location. If a junior staff is required, monthly salary is likely to be around HK$12,000. Together with rent, computer equipment, stationery and other miscellaneous costs, the running costs may be around HK$280,000 per year. In addition, the costs of inventory, advertising and promotions constitute other huge expenses, so total minimum costs between HK$500,000 and HK$600,000 for the 1st year can be very common.

What is the perfect age for starting a business?

There are many start-up companies with young people as partners whilst there also many people who start their own businesses about the age of 40. So, what is the perfect age for starting a business? Well, there is no absolute answer. Young people are enthusiastic and energetic. Veterans of the workplace are experienced, mature and prudent. These all are necessary requirements for starting a business. For most people, the prime time of life is around the age of 35 and this can be the golden period for starting a business because they are still full of energy and have accumulated considerable experience, capital and business contacts, which are beneficial to business management and development.

Striving for capital instead of waiting for the “money”

People may think of venture loans. However, this kind of loan scheme usually involve complicated application procedures and longer approval times. As an alternative, applying for a personal loan from a bank can be an option. Take HSBC’s Personal Instalment Loan as an example. The approval time can be short for applicants who have payroll accounts or income proof records at HSBC. Such loans offer a maximum 60-month repayment period. In case you need more funds afterward, simply redraw the repaid loan any time, with no need to apply for a new loan again—very handy cash flow for sure!

So, do you want to start your own business now? If so, please make an enquiry to HSBC.

To find out more about personal loans, feel free to call us on 2748 8080, or apply online now.

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To borrow or not to borrow? Borrow only if you can repay!

 

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The saying goes that “those without dreams are the walking dead”. For instance, owning their favorite two-wheel chariots may be one of a man’s dreams. In fact, being a motorcycle rider is not exclusive to men, more and more ladies want to fulfil their passion for motorcycling. However, street cycles, sport bikes or cruiser are too masculine, to the extent that ladies may not like them for fear of losing control. Well, scooters are relatively lightweight and have a lower centre of gravity, which make them less likely to roll over. With its more gender-neutral look and, say, a pink body, it is so cute and certainly a perfect match for lady riders!

Passing a driving test first

Novice riders have to pass a written test first and attend a compulsory course to gain basic knowledge and skills for riding a motorcycle. After passing the compulsory competence test, new riders can apply for a learner’s driving licence (learner’s licence, HK$548) and attend the road test course. Subsequent to passing the driving test, riders can apply for a probationary driving licence, the “P plate”. A full driving licence will then be issued if the rider has not violated any laws during year one.

In general, driving courses for new motorcycle riders cost around HK$3,700 to HK$6,000. When enrolling for driving courses, pay attention to whether tuition fees include motorcycle rental for the driving test and the fee for the driving test (road fee, HK$510).

Selling price depends on engine capacity

A scooter costs around HK$20,000 to HK$60,000. Basically, the higher the engine capacity, the higher the selling price. Take the traditional brand (with “V” as the initial) as an example. A 280cc model made in 2017 costs about HK$44,000 and a 150cc model costs about HK$33,000. Moreover, owners have to pay a vehicle licence fee of HK$1,314 per year.

Be smart and protect yourself with a helmet

Common helmet styles include half helmet (lightweight and more ventilated but less protective), full face helmet (more protective but less ventilated) and modular helmet (goggles and chin bar can be flipped open but may be heavier), with prices ranging from HK$1,000 to HK$4,000, depending on materials and brand. When shopping for helmets, look not only for beautiful colours and patterns, but also make sure that the helmets meet the safety standards stipulated by government regulations.

Higher insurance premiums for newbie riders

With less driving experience and weaker ability to deal with the unexpected, beginner riders are more prone to accidents and hence new to pay higher third-party liability insurance premiums, ranging from HK$2,000 to HK$4,000 per year. If no claims made during the policy period, insurers will provide a no-claim discount (NCD) the following year, which is incremental annually.

New riders’ basic expenses in the first year
Item Expense
Motorcycle course and driving test HK$6,000
Vehicle HK$33,000
Third-party liability insurance HK$3,000
Vehicle licence fee (per year) HK$1,314
Fuel HK$3,600
Motorcycle maintenance (tyres, engine oil) HK$2,000
Monthly parking lot and parking fees HK10,600
Total amount HK$59,514


So, you really want to buy scooter but don’t have extra cash flow. HSBC’s Revolving Credit Facility provides one-minute approval with interests calculated according to the amount and number of days used only. If one day your scooter requires repairing, simply withdraw the repaid amount to resolve such unexpected cash needs.

To find out more about personal loans, feel free to call us on 2748 8080, or apply online now.

Apply Now

To borrow or not to borrow? Borrow only if you can repay!

 

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Useful Links

If you need help, please call...

Personal Instalment Loan/Revolving Credit Facility: (852) 2748 8080
Cash Instalment Plan: (852) 2233 3051
Spending Instalment Plan: (852) 2233 3052

To borrow or not to borrow? Borrow only if you cay repay!