hsbc bank personal loan 10000 pounds

drpbalaji1960

Hi
I would really appreciate if someone could advice please.

i got account with HSBC and they are offering a loan for 10000 pounds payable in 12 months.

repayment plan would be 900 pounds a month for 12 months.

please could someone advice whether this deal is ok. and also is there any hidden terms and conditions i should be careful.

i plan not to take any payment protection plan.

Thanks for your advice.

Pbalaji.

thriftymomma

Can you afford £900 a month/ That is the key question.

BenL

Deal appears "ok".

HSBC have a typical rate of 8.7% (66% of approved applicants must be offered this rate) - No guarantee you would get this after credit scoring you. They may decide to bump up your offered apr.

The market leaders ar 7.9% typical.

These being

Sainsbury Bank
Nationwide
Alliance Leicester

After that Abbey at 8% and M&S matches the HSBC 8.7%

At 7.9% you would pay £418 in interest.

At 8.7% you would pay £459 in interest

At 9.9% £521 in interest

16.9% would be £872 in interest.

drpbalaji1960

thanks for the reply

i could afford 900 pounds a month thats not a problem.

when i spoke to the bank they offered me 15.2 % APR for the 10000 pounds.

Fonz_2

drpbalaji1960 wrote: »

thanks for the reply

i could afford 900 pounds a month thats not a problem.

when i spoke to the bank they offered me 15.2 % APR for the 10000 pounds.

Well no, that's not a good deal then.

Kavanne

drpbalaji1960 wrote: »

thanks for the reply

i could afford 900 pounds a month thats not a problem.

when i spoke to the bank they offered me 15.2 % APR for the 10000 pounds.

sounds like risk based pricing, so i imagine they have now done a credit search on you. too many credit searches could cut off the market leading deals for you.

If you can afford to pay £900 on a loan then you can afford to save £900 instead which means you can buy whatever it is you want in just 12 months and pay NO interest. Surely, that's a more attractive option?

~Brock~

Kavanne wrote: »

If you can afford to pay £900 on a loan then you can afford to save £900 instead which means you can buy whatever it is you want in just 12 months and pay NO interest. Surely, that's a more attractive option?

Or alternatively you could not take the loan until next month, but only have to borrow £9100, because you will already have in your hand the £900 you would have had to pay if you had taken it out this month.

Regardless of the interest rate, you would reduce your actual interest charge by 9%. Result !:beer:

drpbalaji1960

I did a bit of search and looks like sainsburys is giving a better deal for a loan on 10000 pounds. 868 pounds a month repayable in 12 months with 7.9% APR.

i have got an offer from HSBC for 10000 pounds with 900 pounds a month payable in 12 months with APR of 15.2%.

I bank with HSBC.

My question is should i give a try with sainsburys bank and see the deal i get from the bank or should i take HSBC bank's deal itself.

Thanks.

Kavanne

don't get a loan at all!

you can try sainsburys too but every application you may will leave a credit search on your credit file which, in the short term, can lower your credit score.

Fonz_2

Isn't 10k over 12 months at 15.2% closer to £1,000 a month?

Snakeeyes21

Why do you need a 10k loan if you have 1k a month spare already?
why pay 1.5k interest when theres probably no point