If you have availed a personal loan through HSBC Bank, you can foreclose your loan only after 12 months from the date of disbursement of the loan amount. The bank charges a fee in case of foreclosures which can go up to 3.75% of the outstanding principal amount. You can foreclose your HSBC personal loan easily by sending a written intimation to the bank and paying off the outstanding amount on the basis of the bank’s confirmation.
In addition to this, HSBC Bank also has a special scheme called the ‘30 Day Service Pledge’ programme. Under this scheme, you can close your loan account within 30 days from the date of loan disbursal. If you are eligible to do the same as per the terms and conditions of the bank, you can foreclose the loan accordingly.
|Type of foreclosure||Fees Charged|
|Partial prepayment||Up to 3.75% of the outstanding balance|
|Foreclosure||Up to 3.75% of the outstanding balance|
If you have availed a personal loan through HSBC Bank and are willing to foreclose the same, the following conditions have to be kept in mind:
1. You can close the loan account within the first 30 days from the date of the disbursement of the loan amount, that is within the ‘30 Day Service Pledge’ period.
2. If you are planning to close the loan account after the completion of the first 30 calendar days from the date of disbursement of the loan amount, you will have to wait for a period of 12 months, i.e. a year, before you can close the account.
3. This would also imply that you will be required to pay off at least 12 EMIs before you can foreclose the personal loan.
4. If you are planning to make partial prepayments for the loan amount, you will be allowed to prepay a maximum amount of 20% of the actual loan amount in a year. The amount to be repaid will be spread across 2 transactions over the year.
5. It should also be noted that you can make partial prepayments only after the completion of 12 months from the date of disbursal of the actual loan amount.
6. Any sorts of prepayment will attract a foreclosure fee of up to 3.75% of the amount. This amount will be charged as per the details mentioned in your personal loan agreement.
HSBC Bank does not provide the option to close a personal loan account online. You would have to raise a service request with the bank through your personal internet banking account, through the phone banking lines, or by physically visiting one of the nearest HSBC Bank branch offices.
1. Foreclosure through HSBC internet banking: As mentioned earlier, you will not get an option to foreclose the loan online. However, you can send a secured email through your registered internet banking account to the bank. A request for the foreclosure letter will be raised accordingly. Once the request is raised, the bank will give a confirmation for the prepayment amount. You will be required the pay off the amount accordingly.
2. Foreclosure through HSBC phone banking: You can call the HSBC phone banking executives to raise a service request. You will be required to verify your Phone Banking Pin before putting up a request and getting it processed. Once the verification is done, you can request the executive to raise a request for a personal loan foreclosure letter. Once the request has been processed, the bank will confirm the prepayment amount. You will be required to pay off the amount on the basis of this confirmation.
3. Visiting a branch office to foreclose the HSBC personal loan: You can also visit the nearest HSBC Bank branch office and raise a service request for your personal loan foreclosure. Once the request has been processed, the bank will send a confirmation in regard to the prepayment amount. You can pay off the outstanding amount accordingly and foreclose your loan.
1. Once you have made the payment for the foreclosure of the loan amount, do not forget to collect the receipt for the same. The payment receipt is the proof for your loan repayment. Save the receipt for future reference.
2. After the loan account has been closed, the bank will issue a No Dues Certificate (NDC). Once the NDC has been issued it will stand as a proof for the payment that you have made to close your loan.
3. You need to make sure that you know the break-up in terms of the cost of the foreclosure. The payment will include the payment of the outstanding amount, the foreclosure charges, the current EMI amount, and the applicable taxes.
4. You should ensure that you have all the required certificates which are relevant to your personal loan. Collect the Certificate of Closure, Statement of Account, No Dues Certificate, etc. and preserve them for future reference.
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