Loans FAQs | Loans Help and Questions

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General FAQs
Electric Vehicle Personal Instalment Loan Related FAQs
Wealth Portfolio Lending

Personal Loans

General FAQs

There are many possible reasons to take out a loan, from covering unexpected short-term expenses to spreading the cost of a large purchase over time. For example, you could use a loan for:

buying a car
paying your tax bill
covering temporary costs while moving home
going on holiday
getting married
covering emergency costs
buying expensive household items such as appliances

If you decide to take out a loan, it's important to choose the right kind for your needs and to make sure you can afford the repayments.

Most loans ask you to repay a set amount each month, which makes it easy to plan your budget and predict your spending. But if fixed monthly payments don't suit your circumstances, you may choose a loan with flexible repayment options, such as a revolving loan or an overdraft facility.

There are two main things to consider: how much you need to borrow, and how much you can afford to repay.

It is best to borrow only what you actually need and to resist the temptation to add extra borrowing. Remember that your loan does not have to be for a round figure, so you can usually borrow exactly the amount of any large purchase.

When working out your repayments, look at all your other spending. It is unwise to spend more than 30% of your gross monthly income on all your loan repayments put together - with the possible exception of mortgage repayments, which may be up to 50% of your income.

Make sure that you can afford the extra cost of loan repayments without leaving you unable to meet other financial commitments.

A good general rule is not to borrow for longer than the life of the thing you are paying for. For example, if you have an annual expense such as a tax bill then a loan of 12 months or less would be the best choice - otherwise you will still be paying off your first loan when the next year's tax demand arrives.

With careful budgeting, you can balance the amount you borrow with the period of the loan and the amount you can afford to repay each month.

A Personal Instalment Loan allows you to repay the whole loan amount in a regular monthly amount within a fixed repayment period, enabling you to better manage their finances.

A Revolving Credit Facility provides you with a standby revolving credit limit. You can withdraw the loan from the standby credit limit anytime you wish; there is no fixed monthly repayment amount or repayment period. Interest will only be charged on the withdrawal amount.

Generally the bank needs the following to process a loan application:

HKID card copy ; Working visa / employment contract / employment letter (For non-permanent HKID card holders)¹
Either one of the following proof of income documents:

1. Bank account statements/passbook explicitly showing the credit of monthly salary in the past one month (or three months for irregular income earners²); OR

2. Bank account statements/passbook showing monthly deposits for the past one month (three months for irregular income earners²) plus recent salary payroll advice dated within three months of application or valid employment letter confirming job title / income details dated within three months of application or valid Tax Demand Note issued by Inland Revenue Department for the last tax year.

HSBC payroll customers with at least one month payroll record (three months for irregular income earners²) immediately prior to the loan application are not required to submit income proof. The Bank, however, reserves the right to request for the same at any time.

¹Employment proof covers: working visa, employment contract, employment letter
- Employment letter must show employer / business name, job title / occupation, office address, office phone number and monthly income.
- Employment contract must show employment period on company letterhead.

²Irregular income earners include customers working on a part-time, commission or profit-sharing basis.

If you find you are unable to keep up the repayments on your loan - for example, if you lose your job or have unexpected new financial commitments - the first step should always be to talk to your bank. There may be a way to make your monthly repayments more manageable, for example, by extending the term of your loan.

A monthly flat rate is one of the methods used to calculate the monthly repayment amount for a loan. Most banks and financial institutions adopt this method to provide a fixed monthly repayment.

The annualised percentage rate is an index of borrowing cost and is calculated on the basis of 365 days or 366 days a year, including interest and all related fees/charges, in accordance with the relevant guidelines of the Code of Banking Practice. APR is used as a way for customers to compare interest rates.

The main reason is that different loans carry different amounts of risk for the lender. For example, a loan granted without any security carries a higher risk of the lender losing its money if you are unable to meet the repayments and so will usually carry a higher rate of interest than a secured loan.

Another factor is the amount you borrow. A lender's administrative costs are lower for a single large loan than for several small loans to different borrowers, so a large loan may have a lower interest rate than a small one. Remember to check the amount that you'll pay over the course of the whole loan.

Common extra costs include:

Annual Fee/Service Fee

Some loans have a fee (usually annual) for maintaining the loan account.

Handling Fee

The bank may charge a fee for processing the loan application, which is usually a one-time payment at the beginning of the repayment period.

Early Redemption Penalty

In some cases, if you wish to fully repay a fixed loan earlier than the agreed term, you will have to pay an extra fee to compensate for the interest lost by the bank.

Late Repayment Charge

If you fall behind on your loan repayments, you will be charged interest on the overdue amount on a daily basis, either at a fixed rate or at the prevailing rate, and/or a fee. Therefore, you are encouraged to budget accurately and keep up the repayments.

Unauthorised Overdraft Handling Charge

If you exceed your overdraft limit originally assigned to the account, you will have to pay an extra fee to the bank.

The APR should not be your only consideration when choosing a bank for your loan. Other things to consider include:

the reputation of the bank
convenience - are you able to manage your loan in a branch, online, or on the phone? What are the bank's opening hours?
other services available to customers

You can apply online for the following HSBC loans:

Overdrafts must be applied for in a branch. For loans where you can apply online, online applications will be processed in the same way as those received at a branch.

You can check your balance online for these loans:

The Terms and Conditions of set off gives us the right to, without notice, combine or consolidate any outstanding principal or interest on the Loan, as well as any other amounts payable by the Borrower hereunder or in connection with the Loan, with any other accounts which the Borrower maintains with the Bank and set-off or transfer any money standing to the credit of the Borrower’s other accounts in or towards satisfaction of the Borrower’s liability to the Bank in respect of the Loan and such other amounts.

You can retry later or you can redraw from your Personal Instalment Loan account in several ways:

By phone on (852) 2748 8080²

At any HSBC branch in Hong Kong

By completing the online application form

²Lines are open Mon–Fri 9am-–8pm

Sat 9am–5pm.

Kindly note that we need some supporting document(s) relating to your personal loan application to facilitate the evaluation and approval of your loan application and we would send you SMS / email notification listing the documents you require to submit for your quick reference. Please submit the copies of requested documents via HSBC website, HSBC Branch or fax to 22693051 within 7 working days. For enquiries regarding your loan application, you may contact us at 22882191.

In order to facilitate the evaluation and approval of your loan application, we may need to further clarify some details with you and we would send you SMS / email notification to ask for your call back to our loan application designated hotline 22882191. Please contact us at your convenience within 3 working days upon receiving the notification to expedite your application approval.

The proportion of interest and principal in each monthly repayment is calculated according to the Straight-line method (applicable to any loan drawn down or redrawn on or after 2 August 2019) or Rule of 78 (applicable to any loan drawn down or redrawn before 2 August 2019). These are the methods to breakdown the principal and interest in the monthly repayment of Personal Instalment Loan:

Straight-line method

In this method, the interest is calculated based on the outstanding principal and allocated to the repayment period. The amount of monthly repayment apportioned to interest is the highest at the beginning and gradually decreases across the repayment periods.

Illustration of showing the proportion of interest and principal in each monthly repayment using straight-line method:

A customer borrows HK$120,000 for 12 months, at a monthly flat rate of 0.14% and handling fee is waived. As such, the total loan principal is HK$120,000

Monthly interest = HK$120,000 x 0.14% = HK$168

Total interest for the full term = HK$168 x 12 months = HK$2,016

Monthly repayment = HK$(120,000 + 2,016) ÷ 12 = HK$10,168

Details of the interest and principal allocation in each monthly repayment:
No. of repayments	Interest in each instalment	Principal repaid in each instalment	Outstanding Principal
1	HK$308.69	HK$9,859.31	HK$110,140.69
2	HK$283.33	HK$9,884.67	HK$100,256.02
3	HK$257.90	HK$9,910.10	HK$90,345.92
4	HK$232.41	HK$9,935.59	HK$80,410.33
5	HK$206.85	HK$9,961.15	HK$70,449.18
6	HK$181.23	HK$9,986.77	HK$60,462.41
7	HK$155.53	HK$10,012.47	HK$50,449.94
8	HK$129.78	HK$10,038.22	HK$40,411.72
9	HK$103.95	HK$10,064.05	HK$30,347.67
10	HK$78.06	HK$10,089.94	HK$20,257.73
11	HK$52.11	HK$10,115.89	HK$10,141.84
12	HK$26.16	HK$10,141.84	HK$0.00

Details of the interest and principal allocation in each monthly repayment:
No. of repayments	1
Interest in each instalment	HK$308.69
Principal repaid in each instalment	HK$9,859.31
Outstanding Principal	HK$110,140.69

No. of repayments	2
Interest in each instalment	HK$283.33
Principal repaid in each instalment	HK$9,884.67
Outstanding Principal	HK$100,256.02

No. of repayments	3
Interest in each instalment	HK$257.90
Principal repaid in each instalment	HK$9,910.10
Outstanding Principal	HK$90,345.92

No. of repayments	4
Interest in each instalment	HK$232.41
Principal repaid in each instalment	HK$9,935.59
Outstanding Principal	HK$80,410.33

No. of repayments	5
Interest in each instalment	HK$206.85
Principal repaid in each instalment	HK$9,961.15
Outstanding Principal	HK$70,449.18

No. of repayments	6
Interest in each instalment	HK$181.23
Principal repaid in each instalment	HK$9,986.77
Outstanding Principal	HK$60,462.41

No. of repayments	7
Interest in each instalment	HK$155.53
Principal repaid in each instalment	HK$10,012.47
Outstanding Principal	HK$50,449.94

No. of repayments	8
Interest in each instalment	HK$129.78
Principal repaid in each instalment	HK$10,038.22
Outstanding Principal	HK$40,411.72

No. of repayments	9
Interest in each instalment	HK$103.95
Principal repaid in each instalment	HK$10,064.05
Outstanding Principal	HK$30,347.67

No. of repayments	10
Interest in each instalment	HK$78.06
Principal repaid in each instalment	HK$10,089.94
Outstanding Principal	HK$20,257.73

No. of repayments	11
Interest in each instalment	HK$52.11
Principal repaid in each instalment	HK$10,115.89
Outstanding Principal	HK$10,141.84

No. of repayments	12
Interest in each instalment	HK$26.16
Principal repaid in each instalment	HK$10,141.84
Outstanding Principal	HK$0.00

Rule of 78

This method puts a decreasing weight on interest and an increasing weight on principal across the repayment periods. The number 78 comes from adding up the number of months of a 12-month-loan:

1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 + 11 + 12 = 78

The interest is allocated to the repayment period in a reverse portion, such that 12/78 (first interest portion) of the total interest will be applied to the first month, 11/78 (second interest portion) of the total interest will be applied to the second month, etc.

Illustration of showing the proportion of interest and principal in each monthly repayment using rule of 78:

A customer borrows HK$120,000 for 12 months, at a monthly flat rate of 0.14% and handling fee is waived. As such, the total loan principal is HK$120,000

Monthly interest = HK$120,000 x 0.14% = HK$168

Total interest for the full term = HK$168 x 12 months = HK$2,016

Monthly repayment = HK$(120,000 + 2,016) ÷ 12 = HK$10,168

Details of the interest and principal allocation in each monthly repayment:
No. of repayments	Interest in each instalment	Principal repaid in each instalment	Outstanding Principal
1	HK$310.15	HK$9,857.85	HK$110,142.15
2	HK$284.31	HK$9,883.69	HK$100,258.46
3	HK$258.46	HK$9,909.54	HK$90,348.92
4	HK$232.62	HK$9,935.38	HK$80,413.54
5	HK$206.77	HK$9,961.23	HK$70,452.31
6	HK$180.92	HK$9,987.08	HK$60,465.23
7	HK$155.08	HK$10,012.92	HK$50,452.31
8	HK$129.23	HK$10,038.77	HK$40,413.54
9	HK$103.38	HK$10,064.62	HK$30,348.92
10	HK$77.54	HK$10,090.46	HK$20,258.46
11	HK$51.69	HK$10,116.31	HK$10,142.15
12	HK$25.85	HK$10,142.15	HK$0.00

Details of the interest and principal allocation in each monthly repayment:
No. of repayments	1
Interest in each instalment	HK$310.15
Principal repaid in each instalment	HK$9,857.85
Outstanding Principal	HK$110,142.15

No. of repayments	2
Interest in each instalment	HK$284.31
Principal repaid in each instalment	HK$9,883.69
Outstanding Principal	HK$100,258.46

No. of repayments	3
Interest in each instalment	HK$258.46
Principal repaid in each instalment	HK$9,909.54
Outstanding Principal	HK$90,348.92

No. of repayments	4
Interest in each instalment	HK$232.62
Principal repaid in each instalment	HK$9,935.38
Outstanding Principal	HK$80,413.54

No. of repayments	5
Interest in each instalment	HK$206.77
Principal repaid in each instalment	HK$9,961.23
Outstanding Principal	HK$70,452.31

No. of repayments	6
Interest in each instalment	HK$180.92
Principal repaid in each instalment	HK$9,987.08
Outstanding Principal	HK$60,465.23

No. of repayments	7
Interest in each instalment	HK$155.08
Principal repaid in each instalment	HK$10,012.92
Outstanding Principal	HK$50,452.31

No. of repayments	8
Interest in each instalment	HK$129.23
Principal repaid in each instalment	HK$10,038.77
Outstanding Principal	HK$40,413.54

No. of repayments	9
Interest in each instalment	HK$103.38
Principal repaid in each instalment	HK$10,064.62
Outstanding Principal	HK$30,348.92

No. of repayments	10
Interest in each instalment	HK$77.54
Principal repaid in each instalment	HK$10,090.46
Outstanding Principal	HK$20,258.46

No. of repayments	11
Interest in each instalment	HK$51.69
Principal repaid in each instalment	HK$10,116.31
Outstanding Principal	HK$10,142.15

No. of repayments	12
Interest in each instalment	HK$25.85
Principal repaid in each instalment	HK$10,142.15
Outstanding Principal	HK$0.00

The above examples show that a larger proportion of the repayment made in the early stages is allocated to settle the interest expense, with a smaller proportion to repay the principal. Such allocation of the repayment will reverse after more instalments have been made while the total interest expenses will remain unchanged.

The examples are for illustration purpose only. All the figures are rounded up to 2 decimal places.

Generally speaking, the earlier you make loan repayment, the more outstanding interest payments are likely to be saved. Nevertheless, you should consider the early repayment charges involved before deciding whether to pay off your loans early or not. HSBC uses the Straight-line method or Rule of 78 to calculate the proportion of interest and principal in each monthly repayment. Even though the monthly repayment amount is the same throughout the loan tenor, more interest will, in general, be included in earlier repayments, and less on principal. In other words, where you have been making repayments as scheduled for some time, the amount of outstanding interest is likely to be small. If you choose to pay off the loan early at this point of time, the loss may outweigh the gain as the amount of interest saved may not be enough to cover the relevant charges for early repayment. You may contact us to check about the total amount involved in early repayment (including outstanding loan balance, early repayment charges and other fees, etc.) and the amount of outstanding interest. You should then compare different scenarios and consider carefully before making a decision of repaying early or not.

If the first repayment date specified by you is more than one month from the date of drawdown, daily deferred interest on the approval loan amount will be charged.

After approval, we will provide a confirmation letter to advise that the respective loan amount has been credited to the designated repayment account. You can also check the transaction history of the repayment account via Personal Internet Banking. For enquiry, please contact our customer service hotline.

You can submit the request by completing Early Repayment/Change of Account Information Application Form for Personal Instalment Loan (PIL)/Personal Tax Loan (PTL)/Revolving Credit Facility (RCF)

Want to know more? Start right away and find out more about our loans and how to apply for one

Electric Vehicle Personal Instalment Loan Related FAQs

For details of eligible electric vehicle models, please refer to the Environmental Protection Department’s website.

As long as it's an eligible model, both brand new and second-hand vehicles from any manufacturers or dealers can qualify for an Electric Vehicle Personal Instalment Loan.

In addition to the general documents required to process a loan application, you'll need to provide the past 6 months’ proof of the order agreement or documents showing the payment of deposits for the purchase of eligible electric vehicle.

Your proof must show the total purchasing price for the electric vehicle. The proof must show that the purchaser / owner of the electric vehicle is the applicant.

Within 6 months after your loan drawdown, you need to provide your vehicle registration document or related documents as proof of your electric vehicle ownership.

Your proof must show that the registration date of car ownership is dated after the loan drawdown. The proof must show that the purchaser / owner of the electric vehicle is the applicant.

No. Since the Electric Vehicle Personal Instalment Loan is only for customers purchasing electric vehicles, reborrowing repaid principal from this loan is not applicable.

Borrow up to HKD3 million, or 23 times your monthly salary, or the purchase price of your electric vehicle, whichever is the lowest.

If you can't provide the related proof, the Bank has the right to terminate your loan. If the Bank exercises this right, you should immediately repay the outstanding loan balance, early repayment fee, late charge, overdue interest, accrued interest, any applicable promotional offers and other fees.

You'll get the offer after you've provided all the documents required for the Electric Vehicle Personal Instalment Loan application, including the vehicle registration document or related documents as the proof of electric vehicle’s ownership.

Wealth Portfolio Lending

Product info, fees and charges

Interest will be charged on the loan amount utilised. We charge a Wealth Portfolio Lending (WPL) annual interest rate which is 1-month Hong Kong Interbank Offered Rate (HIBOR) plus/minus Interest Rate Spread p.a. (Interest rate is determined by your daily utilisation tier).

We could change the basis of pricing from time to time and we will inform you if we do so with at least 30-days notice. You can check our latest pricing on our Key Facts Statement (Wealth Portfolio Lending - Key Facts Statement (hsbc.com.hk)).

1-month Hong Kong Interbank Offered Rate (HIBOR) as at any date means the Hong Kong Interbank Offered Rate for the interest period of 1 month for Hong Kong Dollars quoted by The Hong Kong Association of Banks on such date. Please refer to the latest 1-month HIBOR on The Hong Kong Association of Banks' website (www.hkab.org.hk).

There is no charge for the application of WPL and there will be no charge for unused credit limit.

What you owe us at any time is made up of any outstanding amount of portfolio loan you have drawn down, and any outstanding interests, fees, costs and/or expenses that arise from your loan.

We'll work out interest daily and deduct it from your portfolio loan account on day 28 of each month, or on the preceding business day if it is not a business day.

Interest will continue to accrue until you repay all your loans in full.

There are no minimum monthly repayment requirements and no fixed repayment date.

Once we activate your Wealth Portfolio Lending (WPL) facility, you can find your WPL loan account in the WPL facility confirmation letter we send you.

You can also view your WPL loan account details via the WPL servicing page in HSBC HK Mobile Banking app, HSBC HK Easy Invest app, or HSBC Online Banking.

If you lost your WPL facility confirmation letter, please contact your Relationship Manager or visit any of our branches.

Yes, subject to internal approval. However, this can only be done by contacting your dedicated Relationship Manager or visiting our branch. Currently we don't support this via HSBC HK Mobile Banking app or HSBC Online Banking.

Application and cancellation

You can apply via HBSC HK Mobile Banking app, HSBC Online Banking, or making an appointment with your dedicated Relationship Manager.

Via HSBC HK Mobile Banking app:

Log on and tap 'Investment' > 'Products and Services' > 'Wealth Portfolio Lending'

Via HSBC Online Banking:

Log on and navigate to the top menu, select 'Investment' > 'Investment products' > 'Wealth Portfolio Lending'

You can also select 'Investment' > 'Investment Portfolio' > 'Explore wealth products' > 'Wealth Portfolio

Lending'

Make an appointment with your dedicated Relationship Manager:

Call us on (852) 2233 3033 for HSBC Global Private Bank customers and HSBC Premier Elite customers and (852) 2233 3322 for HSBC Premier customers

If you're visiting our branch, please bring your HKID or other identification documents.

For applications via HSBC Online Banking or HSBC HK Mobile Banking app, you don't need to upload any documents.

Yes. If your Integrated Account is an either to sign joint account held by two persons, you are eligible to activate Wealth Portfolio Lending. In HSBC Mobile Banking app and HSBC Online banking.

If you wish to use other types of joint account for Wealth Portfolio Lending, please contact your dedicated Relationship Manager and visit our branch for activation.

If you are applying via HSBC HK Mobile Banking app or HSBC Online Banking , generally it takes around:

10-15 minutes to go through the whole application journey
1-2 business days to set up your facility.

If you are applying via branch, generally it takes around:

30 minutes to apply with your dedicated Relationship Manager
3 to 5 business days to approve and set up your facility

Yes, you can still apply for the facility. But your credit limit always depends on the collateral values from the eligible assets in your portfolio. Having no eligible collateral will imply that you do not have any limit to use.

Once the Wealth Portfolio Lending (WPL) facility activation is successful, you'll receive a WPL facility confirmation letter by email or post.

Wealth Portfolo Lending (WPL) is eligible for Premier Elite or Premier customers only, if you're no longer a Premier Elite or Premier customer, we can review and refuse to provide WPL facility for you.

Before you cancel your WPL facility , you are still able to logon to our WPL servicing page to view your loan details.

You need to contact your dedicated Relationship Manager or visit our branch to fill in the cancellation form in person.

Credit limit

When you apply for Wealth Portfolio Lending (WPL), you need to indicate the maximum credit limit required. We will review and approve it.

If you're applying for WPL via HSBC Online Banking or HKBC HK Mobile Banking app, system will propose the maximum credit limit for you and you can choose to reduce before you submit your application.

After your facility is successfully activated, you can check your maximum credit limit via the WPL servicing page in HSBC Online Banking, HSBC HK Mobile Banking app, HSBC HK Easy Invest app, or refer to the WPL facility confirmation letter we sent you.

You can change your maximum credit limit by contacting your dedicated Relationship Manager. We'll let you know once the update becomes effective.

We calculate your credit limit by considering the 3 factors:

the collateral value based on the Advance Ratio assigned to each of your eligible assets
our internal risk assessment criteria
your responses to the Knowledge and Experience Questionnaire of Wealth Portfolio Lending

We review your credit limit at least daily.

To increase your credit limit, you can consider bringing in additional eligible assets to your Wealth Portfolio Lending portfolio loan account as collateral.

Your credit limit is capped at your approved maximum credit limit, you can submit application for updating your maximum credit limit.

We want to make sure you are fully aware of the key features and risks associated with Wealth Portfolio Lending (WPL) before activating the facility.

Based on your answers, we may set aside a portion of your credit limit to serve as a buffer in times of market volatility, which helps lower the likelihood of a margin call or forced liquidation.

Your maximum credit limit is indicated when applying for Wealth Portfolio Lending. Once approved, it won't be frequently changed, unless you ask us to, or we tell you to.

On the other hand, we calculate and update your credit limit at least daily, by considering the below factors:

the collateral value based on the Advance Ratio assigned to each of your eligible assets
our internal risk assessment criteria
your responses to the Knowledge and Experience Questionnaire of Wealth Portfolio Lending

Your credit limit available for use is the lower value of the two credit limits.

When determining your credit limit, there are 3 possible deductions from your collateral value:

Cross currency risk margin is the additional margin you need to hold when the currency of your collateral and your loan don't match.
Non-standard risk margin is the additional margin you need to hold when there's high concentration of collateral in certain risk categories that we decide from time to time (e.g. non-investment grade debt).
Safety buffer is the additional buffer we assign to you to reduce likelyhood of margin call in time of market decline.

Safety buffer is set based on your knowledge and experience on security based lending, and our assessment of your eligibility for Wealth Portfolio Lending. It is used to reduce the likelyhood of margin call during periods of market decline.

Margin status

'potential' margin status means that based on the last calculation of your Net Margin Ratio (NMR) of your portfolio, you may have fallen into one of the margin status scenarios. Please refer to the latest SMS we sent you for your margin status update.

If your Net Margin Ratio (NMR) falls below 90%, we'll let you know either by SMS or calling you on the latest phone number you've registered with us.

You can also check your margin status via the Wealth Portfolio Lending (WPL) servicing page in HSBC HK Mobile Banking app, HSBC HK Easy Invest app, or HSBC Online Banking.

Please monitor your margin status closely and bring it back to 100%.

Depending on your fund-in channels or assets sold, it may take time to process between different banks or different fund-in channels. The system will need time to refresh the margin status.

There are 4 margin status scenarios: over-collateralised, shortfall, margin call, and forced liquidation. Your Net Margin Ratio (NMR) decides which margin status scenario you fall under.

If your Net Margin Ratio (NMR) is between 80% to 100%, you're in shortfall, and no immediate action is needed. But you can't draw further loans until your NMR is over 100% again.

If your NMR is between 60% to 80%, you're in margin call. You need to act within 5 working days to bring it back to 100% to correct your margin call.

To satisfy a shortfall or a margin call, you can provide any of the following:

additional funds to reduce the outstanding portfolio loan
additional eligible assets to increase your credit limit
instructions for a full or partial sale of eligible assets

If your NMR falls below 60%, or when you don't correct the margin call within the given timeframe, we can force liquidation of your assets without notice.
Please monitor your margin status closely to make sure that your portfolio loan has sufficient collaterals. Also make sure that your outstanding portfolio loan doesn't exceed your credit limit, leading to unwanted margin calls or forced liquidation.

If your Net Margin Ratio (NMR) is between 80% to 100%, you're in shortfall, and no immediate action is needed. But you can't draw further loans until your NMR is over 100% again.

If your NMR is between 60% to 80%, you're in margin call. You need to act within 5 working days to bring it back to 100% to correct your margin call.

To satisfy a shortfall or a margin call, you can provide any of the following:

additional funds to reduce the outstanding portfolio loan
additional eligible assets to increase your credit limit
instructions for a full or partial sale of eligible assets

If your NMR falls below 60%, or when you don't correct the margin call within the given timeframe, we can force liquidation of your assets without notice.

Facility details, eligible assets and advance ratio

You can view your facility details via the Wealth Portfolio Lending (WPL) servicing page in HSBC HK Mobile Banking app, HSBC HK Easy Invest app, or HSBC Online Banking.

For details of your WPL outstanding portfolio loan balance and any relevant interest expense, please check your integrated account transactions in HSBC Online Banking or HSBC HK Mobile Banking app or refer to your integrated account statement.

No. All of the holdings in your Wealth Portfolio Lending (WPL) portfolio loan account will be pledged. You can't select which holding to exclude.

By applying WPL with your personal integrated account (including investment services account) as portfolio loan account, you grant us security over all funds and investment products you hold with us.

The Wealth Portfolio Lending (WPL) servicing page only shows the investment holdings with an initial Advance Ratio assigned from WPL, within the integrated account that your WPL facility is attached to.

The page doesn't show assets without an initial Advance Ratio assigned. But that doesn't mean you don't own such assets.

For full details of your investment holdings, please refer to your investment services account details via your HSBC Online Banking or HSBC HK Mobile Banking App or refer to your Investment Services Composit Statement.

The Advance Ratio (AR) of each asset is assigned based on HSBC's internal assessment of the quality of your assets and your investment portfolio. This will be reviewed and may be updated from time to time.

The AR for your assets is subject to changes with immediate effect, with reasons including but not limited to the following.

We reasonably believe that the quality of some types of eligible assets will deteriorate.
We change our credit risk appetite and policies towards credit and financial risks.
We reasonably believe market conditions will expose you to unacceptable risks or heavy losses if we don't make the change.
We'd like to make sure your eligible assets cover the amount you owe us if you're unable to pay us.
Laws or regulations require us to do so. .

Generally, the more diversified your collateral portfolio is, the higher the Advance Ratio your assets may be assigned.

Your eligible assets may not be assigned the full advance ratio if your portfolio is concentrated. Generally, a portfolio with 5 or more eligible assets would be considered diversified if no single asset contributed a disproportionately large share of the collateral value.

Loans

Table of contents

Personal Loans

General FAQs

Why take out a loan?

Apart from fixed monthly loan repayments, are there other repayment methods?

How much should I borrow?

How long should I borrow for?

What is the difference between a Personal Instalment Loan and a Revolving Credit Facility?

What documents do I need when I apply for a loan?

What if I can't keep up the repayments?

What is a monthly flat rate?

What is an annualised percentage rate (APR)?

Why do different loans have different interest rates?

What other costs are involved in borrowing money?

How should I choose a lender?

What is the difference between applying online and in a branch?

Can I check my loan account balance online?

How would the Terms and Conditions of "Set-off" affect me?

I want to redraw from my Personal Instalment Loan account but received an error message: "Please retry or enable JavaScript on your browser. Please refer to the FAQ section for details."

What should I do when receiving SMS / email notification asking me to submit documents for loan application?

Why do I receive SMS / email asking me to call back for my loan application?

Interest calculation method

Do I save interest expenses by making early repayment of personal instalment loan?

Why was I charged deferred interest?

How can I know the drawdown date if I submit an online application?

Can I change the repayment date after receiving the confirmation letter so as to avoid the deferred interest?

How do I apply for early repayment?

Electric Vehicle Personal Instalment Loan Related FAQs

What electric vehicle models are eligible for an Electric Vehicle Personal Instalment Loan?

What documents do I need to submit for the application?

What documents do I need to submit after the loan drawdown?

What are the repayment periods available for Electric Vehicle Personal Instalment Loan?

Can I reborrow the repaid principal from the loan?

What is the maximum amount I can borrow for the Electric Vehicle Personal Instalment Loan?

What if I can't provide the vehicle registration document or related documents as proof of my electric vehicle’s ownership within 6 months after my loan drawdown?

When will I receive the promotional offer for my successful loan application and drawdown?

Wealth Portfolio Lending

Product info, fees and charges

What costs are involved in using Wealth Portfolio Lending?Are there any fees and charges for applying WPL ?

How does repayment of outstanding Portfolio Loan work?

Which account is my Wealth Portfolio Lending loan account?

Can I apply for more than one Wealth Portfolio Lending facility?

Application and cancellation

How can I apply for Wealth Portfolio Lending?

What documents are needed when I apply for Wealth Portfolio Lending?

If my Integrated Account is a joint account, am I eligible to activate Wealth Portfolio Lending?

How long does it take to apply for Wealth Portfolio Lending?

Can I still apply for Wealth Portfolio Lending even I do not have any eligible collateral in the integrated account?

Where can I check the status of my application?

Can I continue to use the facility if I am no longer a Premier Elite or Premier customer?

How can I cancel my facility?

Credit limit