Transportation is important, and having reliable transportation is even more critical. That is why a lot of people turn to banks to get the money they need or a new car.
No matter if it is new or new to you, the purchase of a vehicle can be very expensive. So finding an establishment that can help you foot the bill can be the way to go. There are a lot of establishments that offer this type of loan, and so it may seem like a daunting task.
One of the banks that offers a competitive auto loan is HSBC. How do you apply for it? We have put together this article to answer that and so much more about the HSBC car loan.
HSBC Car Loan Benefits & Features
With a car loan from HSBC, you can take advantage of a lot of great benefits. The most significant benefit is that this loan has a monetary range of options that is quite wide. You can get a car loan for anything from £1000 to £25,000. With this range of options, there are also multiple repayment options.
For those looking for a car loan under £15,000, you will have the ability to repay it within five years. If you are looking for more than £15,000, you can take up to eight years to repay the loan. The terms of the loan will depend on the qualifications that the customer is working with.
Another feature of this car loan is quick access to the funds. Those individuals that have an ongoing relationship with HSBC can expect to see the funds immediately once approved. If you are a new customer, then you will be looking at about a 3 day wait period.
On top of that feature, the loanee can make overpayments without fear. You can make a larger payment without additional fees, which will help lower your interest rate.
Fees & Rates
A 3.3% representative rate on loans from £7000 to £15,000 is typically used to determine interest for loans. It is a good base to work from so that you and your loan officer can have some foundation, but when it comes to your loan, this will not be the final rate.
Fees and rates will be determined on an individual basis. The actual APR will only ever be as high as 21.9% and will be decided accordingly concerning the applicant’s credit score.
How to Apply
HSBC offers multiple ways to apply for a car loan. There is an online application, you can go through your bank app, or you can always go the traditional route and apply in branch. For those that are already clients of HSBC banks, the online application is a simple and effective way to apply for a loan.
Before moving to the final application, you should make sure you are eligible first. Once you have done that and determined that you are eligible, then the next step is to fill out the final application.
For applicants that already have a relationship with the bank, you will get an immediate answer to your application. If, however, you are new to HSBC banks, you will have at least a 3 -5 day wait. The eligibility requirements include the following.
- You need to have a bank account
- An annual income of £10,000 hours before tax
- Be 18 or over and be a UK resident
Main Application
Once these requirements are met, the next step is to move on to the main application. There are a few situations that may cause the institution to decline your loan. Most of these have to do with the purpose of your loan. The purposes that are not conducive to a car loan are below.
- Property/land purchases
- Buying out a joint owner
- Purchasing a joint stake in a property
- Deposit of mortgage
- Third-party support for land purchases or solicitor services
- Gambling
- Business purposes
- Dealing with shares
Bank Contact Information
There are many ways to contact HSBC banks. You can use their online chat system through their website. You can also tweet @HSBC_UK. Finding a branch close to is not difficult either, simply use their branch finder here. Or, call them at the numbers below.
Tel: 03457 404 4040 (UK), +44 1226 261 010 (international)
HSBC’s headquarters are located at 8 Canada Square, Canary Wharf, London E14 5HQ, United Kingdom.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.
