 Loans
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| Tax Loan | |
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| Asset Link Secured Overdraft | |
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| Unsecured Overdraft Facility | |
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| Personal Instalment Loan | |
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| Interest-free Instalment Plan | |
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| Credit Counseling Loan | |
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| Personal Revolving Loan | |
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| Top-up Loan | |
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| Vehicle Loan | |
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| Loan Process | |
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| FAQ | |
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| Glossary | |
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| Download Application Forms | |
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1.
Besides interest rates, what else should I consider before applying for a personal loan?
Besides interest rates, you should also take the following factors into account:
•
Read the terms & conditions carefully-check
if there are any other costs and/or hidden fees;
•
Ease of application and approval turnaround
time,
•
Convenience of the bank's branch network
& application channels.
2.
How long does it take for Hang Seng to approve
and disburse a loan?
Generally, for applications for a Hang Seng
Handy Cash Personal Instalment Loan made online, via the Hang Seng
24-hour Personal Loan Application Hotline or in person at a Hang Seng
Bank branch, the customer can enjoy same-day approval and cash disbursement
if Hang Seng receives all required documents by the designated time,
(subject to the actual situation and circumstances at the time of
application). For the related terms and conditions of the Hang Seng
Handy Cash Personal Instalment Loan, please click here.
3.
Is it necessary to have a Hang Seng bank account
before applying for a personal loan from Hang Seng?
A Hang Seng bank account is not a prerequisite
when applying for a personal loan. If the customer does not have a
Hang Seng bank account, he/she will be required to open one for loan
disbursement and repayment upon loan approval. The customer can go
to any Hang Seng Bank branch for account opening.
4.
When applying for a loan, will the bank check
my personal credit records in other banks with a credit reference
agency (CRA)?
Generally, in order to assess the creditworthiness
of the customers, banks will check with a CRA which collects information
about individual's indebtedness and credit history. In the event that
customers wish to access credit reports, the bank will provide the
contact details of the relevant CRA.
5.
Does borrowing mean that I am incompetent
as regards financial management?
In general, no. Saving money from your monthly
income is of course a good way to get accumulate sufficient cash to
buy or do the things you want. However, this involves a "time cost"
- you have to wait until you have saved enough money. What's more,
you have to take inflation into account when purchasing things - for
example, a car. In addition, this "time cost" may mean you sometimes
miss something - for example, a timely investment opportunity or bargain
sale season. And there may be times when emergencies arise and you
need extra cash immediately. Sometimes, people let their budget out
of control and they keep increasing their debts - in such cases, debt
restructuring or refinancing debts may be needed.
So there are many good reasons for taking out a loan. There are many different kinds of loan to suit individual needs. The trick is to know which one is best for you.
So there are many good reasons for taking out a loan. There are many different kinds of loan to suit individual needs. The trick is to know which one is best for you.
6.
What type of loan should I choose?
Click here
to choose the right loan product.
7.
How much should I borrow?
Only borrow what you actually need, not what
you might want. It is unwise to spend more than 30% of your gross
monthly income on loan repayments (in the case of a home mortgage,
this figure can be up to 50%). You must also calculate your other
commitments and make sure you can afford to repay the loan without
leaving yourself short of money each month.
8.
How long should I choose to repay the loan?
You should balance the amount you borrow
with the period of the loan and the amount you can afford to repay
each month as the tenor affects the monthly repayment amount. You
must have enough left of your income after loan repayments to live
and save some money. In most cases, you should make sure that the
period of your loan is not longer than the duration of whatever you
are buying or doing.
9.
Are there repayment methods other than fixed
monthly payments?
Yes. A regular monthly income makes repayments
easy and allows you to plan your budget. However, you may have an
irregular income and be unable to budget for a fixed monthly repayment,
or you may require a standby facility for use only when you need it.
In these cases, you can choose a loan with flexible repayment options,
such as a revolving loan or an overdraft facility.
10.
What is the difference between an instalment
loan, a revolving loan and an overdraft?
An instalment
loan requires you to repay the principal
and interest regularly, usually monthly. Interest is calculated at
a predetermined interest rate according to the loan tenor you selected.
A revolving loan or an overdraft is a credit limit granted to your revolving or current account, usually for standby purposes. Interest is calculated on the drawn amount on a daily basis. The main difference between the two is the money withdrawal method. A revolving loan involves an ATM card or credit card to withdraw cash at an ATM machine or make transactions at merchants by EPS.
An unsecured overdraft facility involves the current account and the transactions made through this account. No withdrawal fee will be charged for an unsecured overdraft facility.
A revolving loan or an overdraft is a credit limit granted to your revolving or current account, usually for standby purposes. Interest is calculated on the drawn amount on a daily basis. The main difference between the two is the money withdrawal method. A revolving loan involves an ATM card or credit card to withdraw cash at an ATM machine or make transactions at merchants by EPS.
An unsecured overdraft facility involves the current account and the transactions made through this account. No withdrawal fee will be charged for an unsecured overdraft facility.
11.
What is a secured overdraft facility?
If you have assets (e.g., deposits, shares,
bonds or investment funds) on hand, you can pledge these assets against
an overdraft facility. A credit limit obtained in this way is called
a secured
overdraft facility. This facility is usually
charged a lower interest rate than an unsecured overdraft facility
or a loan.
12.
Am I free to sell my assets if I pledge them
for a secured overdaft facility?
Yes, you are free to sell providing that
you settle any outstanding balance with the sale proceeds.
13.
I have a secured overdraft facility. Can I
also apply for an unsecured overdraft facility?
Yes, you can also apply for the unsecured
overdraft facility.
14.
What is the difference between hire purchase
and leasing for a Vehicle Loan?
Hire purchase finances the purchase of vehicles
and plant and equipment. The asset under finance is purchased by the
finance house and hired to the customer. Its ownership is passed on
to the customer (the hirer) when the last instalment is paid.
Leasing is another finance arrangement similar to hire purchase. With a lower interest rate, leasing requires customers to pay advance rentals (usually equal to loan tenure + 1, ie customers of a 4-year loan should pay 4+1=5 monthly instalments in advance). Leasing is more attractive to customers who have excess liquidity and would like to pay advance rentals in exchange for a lower interest rate.
Leasing is another finance arrangement similar to hire purchase. With a lower interest rate, leasing requires customers to pay advance rentals (usually equal to loan tenure + 1, ie customers of a 4-year loan should pay 4+1=5 monthly instalments in advance). Leasing is more attractive to customers who have excess liquidity and would like to pay advance rentals in exchange for a lower interest rate.
15.
Can I reborrow the money from my instalment
loan?
Yes, we have a top-up
arrangement which lets you reborrow your repaid principal amount.
For a revolving loan or overdraft facility, if you feel that the credit limit is not sufficient, you can request an increase on your credit line.
For a revolving loan or overdraft facility, if you feel that the credit limit is not sufficient, you can request an increase on your credit line.
16.
What is a monthly flat rate? What's the difference
between that and the annualised percentage rate (APR)?
Monthly flat rate is the common method adopted
by financial institutions to calculate the monthly repayment amount
for an instalment loan, as illustrated below:
APR is calculated in accordance with the relevant guidelines referred to in the Code of Banking Practice. Interest is calculated on the basis of a 365-day or 366-day year, including all payable fees/charges such as the handling fee, premium fee, etc.
APR is a tool for comparing interest rates, and expressing the repayment amount and loan amount ratio.
Principal |
= |
Loan Amount + Handling Fee |
Handling Fee |
= |
Loan Amount x Handling Fee % p.a. x Tenor / 12 |
Interest |
= |
Principal x Monthly Flat Rate x Tenor |
Monthly Repayment Amount |
= |
(Principal + Interest) / Tenor (up to 1 decimal) |
APR is calculated in accordance with the relevant guidelines referred to in the Code of Banking Practice. Interest is calculated on the basis of a 365-day or 366-day year, including all payable fees/charges such as the handling fee, premium fee, etc.
APR is a tool for comparing interest rates, and expressing the repayment amount and loan amount ratio.
17.
What other costs are involved in borrowing
money?
Some common additional costs include:
- Application fees
- Service fee
- Unauthorised overdraft penalty
- Special administration fee
- Overdue handling fee and interest
- Early repayment fee
- Application fees
- Service fee
- Unauthorised overdraft penalty
- Special administration fee
- Overdue handling fee and interest
- Early repayment fee
18.
What documents are required for a loan application?
Generally the bank needs the following for
processing a loan application:
-
HKID card
-
Income proof, e.g. bank account monthly
statement/passbook showing your latest one month’s salary
-
Current residential address proof, e.g.
utility bills, bank statement
-
Any other documents or certificates deemed
appropriate
For more tips and information, please consult the Loan Process and Glossary sections.
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