HSBC personal loan review: A good option for existing customers

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In a Nutshell

Personal loans from HSBC have competitive starting interest rates, and the lender offers potentially quick loan funding. But to qualify for its lowest rates and higher loan amounts, you need to be an existing customer.

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Pros Cons
Potentially fast funding Larger loan amounts are reserved for eligible HSBC customers
Competitive starting interest rates Not transparent about full range of interest rates
No payment due within the first 50 days of account opening Doesn’t accept co-applicants

What you need to know about an HSBC personal loan

The bank now known as HSBC was launched in 1865 as the Hongkong and Shanghai Banking Corporation in 1865, and today is one of the world’s largest banks.

In the United States, HSBC is a full-service bank. It offers checking and savings accounts, credit cards, home mortgages and personal loans.

If you’re looking for a personal loan, one selling point is that HSBC personal loans don’t have annual fees, origination fees or prepayment penalties.

Larger loan amounts are reserved for eligible HSBC customers

HSBC offers personal loans as big as $50,000, but not everyone is eligible for a loan of that size — only existing HSBC Advance or Premier customers are eligible.

To become an HSBC Advance customer, you must open an HSBC Advance checking account and maintain a balance of at least $5,000 in combined deposit and investment accounts.

HSBC Premier customers must have an HSBC Premier checking account and maintain balances of $75,000 in combined personal deposit accounts and investment balances.

If you’re a new customer, HSBC offers personal loans between $3,000 and $30,000.

Lowest rates and shortest loan terms reserved for people with excellent credit

HSBC lists a competitive starting interest rate on its website, but not all applicants will qualify for the lowest advertised rate. According to the bank, the loans with the lowest APR are reserved for borrowers with “excellent credit” who select loan terms of 36 months or less.

If you don’t qualify for the bank’s lowest rates, it’s unclear what interest rate you may be facing since HSBC doesn’t list its full range of APRs on its website.

HSBC’s loan repayment terms range from two to five years.

Potentially fast funding

Whether you’re taking out a personal loan for home renovations, debt consolidation or other major expenses, you may need your money quickly. With an HSBC personal loan, you may be able to get your money the same day you’re approved.

The bank says that existing HSBC customers can receive their money “immediately” after approval for a loan. New customers may receive the funds as soon as the next business day.

It may take up to three business days if you’re using a non-HSBC account, though keep in mind that the exact timing will depend on your bank.

No payments due within the first 50 days of account opening

HSBC gives you 50 days after opening an account before you have to start making payments on your personal loan. While interest will accrue during this period, this gives you extra time to prepare your budget before you have to start making payments.

Co-signers not accepted

If you have less-than-stellar credit, adding a co-applicant to a personal loan application can help you qualify for a loan and potentially get a lower interest rate than you’d get on your own. Unfortunately, HSBC doesn’t allow co-applicants, so you’ll have to meet the lender’s eligibility criteria on your own.

Who is an HSBC loan good for?

If you’re looking for the best bank personal loans, HSBC deserves a look.

With no origination fees or prepayment penalties and competitive starting interest rates, HSBC personal loans can be a good match for people with strong credit who want to consolidate debt or finance a major purchase. HSBC loans are especially useful for existing HSBC customers since they may be able to qualify for lower interest rates and higher loan amounts than non-customers.

Take note that HSBC personal loans aren’t available to residents of Wisconsin or any U.S. territory.

How to apply with HSBC

To qualify for a loan from HSBC, you must meet the following requirements:

  • You must be at least 18 (19 in Alabama and Nebraska).
  • You must have proof of U.S. residence.
  • You must have proof of income, such as recent pay stubs or a W-2 from your employer.

You can complete the entire loan application online, or you can apply in person at a local branch.

When you start the process online, HSBC will let you apply for prequalification to see any potential loan options, including different rates and repayment terms, without performing a hard credit inquiry that may affect your credit scores.

If you move forward with a loan application, HSBC will check your credit to determine whether to approve you for a loan, which may affect your scores.

Not sure if HSBC is right for you? Consider these alternatives.

  • SoFi: With SoFi, you can apply for a personal loan with a co-applicant, potentially helping your chances of qualifying or receiving a lower interest rate.
  • Wells Fargo: If you’re a Wells Fargo customer, the bank offers higher loan maximums than HSBC if you need to borrow more money.

About the author: Kat Tretina is a personal finance writer with a master’s degree in communication studies from West Chester University of Pennsylvania. Obsessed with her many side hustles, she focuses on… Read more.