HSBC FlexiLoan
Good:
This is a revolving credit loan so you can choose how much to pay each month (min. £20)
Bad:
Interest rate is higher compared to other personal loans on the market
Verdict:
Only available to HSBC current account holders - flexible loan where you can change repayments, make lump sum payments and if you don't use your FlexiLoan you don't pay anything
If you hold a current account with HSBC, you can apply for their FlexiLoan. This revolving credit facility is available between £500 and £5,000. A revolving credit facility is a loan where you can make lump sum payments with no penalties, you can pay interest only (must pay between 4% and 10% of your limit), the interest is calculated daily on the outstanding balance, only small monthly repayments are required (min. £20) and you do not need to worry about paying off the bulk of the loan - only the interest. The only thing is it is charged at a higher interest rate.
You can apply online, or you can apply via telephone. If you apply online, they will give you a provisional decision within a few minutes and they will also send you an email with this decision. If accepted, you will need to sign an electronic loan agreement and they'll transfer the money directly into your HSBC account. They can get the money in your account today, as long as you don't apply after 5:00pm. If you apply after 5:00pm, the money will go into your account the next working day.
HSBC are a big, well-known, high-street bank. They have a reputation for getting the money into your account quickly as it is transferred to you directly. The online application is simple, but can be quite lengthy if you're not used to filling out forms. If you enter your bank details, it will fill in your personal details so you don't have to do it again. They will however look at your credit history, so may not be a suitable option if your history is particularly poor (i.e. have made late payments, have CCJs or defaults). Be aware of any changes made to your monthly repayments - they have been known to change the repayments of your loan. If your circumstances change and for some reason you lose your job, they may be very insensitive and may be uncooperative in changing your repayments.
I recently got a Flexiloan from HSBC for £1000 and boy do I regret it now. The idea was great, a payment of £40 a month, the ability to withdraw money back out again without needing to renew the loan and if you pay it back earlier, you pay less interest. Great I thought, the rate was 16.9%, but I only wanted a small(ish) loan so I decided to put up with it. Since then I wish I hadn't done it. The bank seems to like charging me hidden extra's - the loan repayment scheme for instance. I was happy to pay it - but then found after 1 payment it went up!. The repayments themselves are ok, go out on time etc... but really it isn't worth a thing to me. I have since seen other loan offers and people like Tesco and other firms are offering lower rates and better conditions. Some companies also offer you their own protection plan which is cheaper in many cases. My advice is - look around before getting a loan, HSBC used to be good, but are currently going through a bad patch and this is NOT the time to get a loan from them. Being a member of the bank doesn't help at all either, no beneficial rates or anything.... Shop elsewhere for your loan.
I became redundant at the end of last year and owed @ £850 on a flexiloan with HSBC. As I had to claim benefits, I politely asked them to waive the re-payments until I able to pay them, hope-fully within a few months. I had banked with them for over 25 years and never, ever went overdrawn or made a late re-payment, however, they refused to show any interest in my circumstances and subsequently ramped- up ridiculous interest charges, created over-drafts without agreement at extortionate interest rates and systematically extorted an additional sum of over £1500 from me in 6 months and credit black-listed me! It appears to me that their head office have a policy that just makes things up as they go along and are masters of delay tactics, namely putting you on hold while they think of something. It is blatantly obvious to me that the policies of this organization are based on simple extortion and utter lies, of which I have clear proof, on the grounds that there is no way that incompetence and indifference can be so great. I look forward to bringing these views before an official hearing as soon as I can, because I am determined to have this company exposed for what it is
- You must be in full-time, part-time or self-employment earning at least £700 per month
- You must have a good credit history
- You must have a HSBC Current Account
- You may not need to provide any documents if you are a current account holder
- You must be over 18 years of age
- You must have been a UK resident for 3 years or longer
