Planning to take out a personal loan? By exploring different options, you can find the right loan for you with the best terms. You can also avoid any unexpected costs down the line.
An unsecured loan allows you to borrow a fixed amount of money without collateral. Eligibility will depend on creditworthiness, which is proven through your income and credit history.
You can use an unsecured loan for almost anything: shopping, travel, study abroad, wedding, home improvements and whatever else you have your eye on.
You can apply for an unsecured loan if you:
We've simplified the loan application process for customers with an HSBC credit card or any HSBC unsecured loans of over 6 months, or customers with an HSBC payroll account.
The maximum amount you can borrow for an unsecured loan is usually about 5 to 10 times your monthly salary. And because the loan is for personal spending, many banks and financial institutions will cap the loan amount at VND250 million.
At HSBC, we offer Personal Instalment Loans of up to 14 times your salary, for a total loan amount up to VND900 million.
You must pay interest on an unsecured loan. Each bank will offer different personal loan rates, depending on the loan agreement. The unsecured loan interest is paid in monthly instalments.
Besides interest, some banks may also charge you:
It's important to note that not only will you be charged a fee for late repayment, but this will also affect your credit history.
Are you thinking of taking out a home loan? Our Home Loan Calculator will show you approximately how much your monthly payments will be based on the loan amount, tenor and interest rate.
Find out more: HSBC unsecured loan rates and fees
When applying for an unsecured loan, you'll need to provide your:
You might consider a personal loan if you want to borrow a relatively small amount and are confident that you can pay it back quickly. An unsecured loan can be used to:
Currently, unsecured loan interest rates range from 14% to 28%, depending on the loan. The two most popular methods for calculating loan repayment interest rates are according to the flat rate; and by the reducing balance method.
A flat rate of interest is calculated against the principal during the tenor, or length of the loan.
Let's say you apply for a 12-month unsecured loan of VND60 million, with a flat rate of 15.99%. The formula for the monthly repayment would be:
Monthly repayment = average debt balance + fixed interest expense
The sum of interest on the VND60 million loan, with the flat rate of 15.99% for a year, is VND9.59 million.
We offer HSBC unsecured loans with interest calculated by the reducing rate method. The formula for this is:
Monthly repayment1 = loan principal + interest on outstanding principal balance
Here, we show an example of how to calculate the interest on an HSBC 12-month VND60 million loan, with an interest rate of 15.99%.
| Month | Principal | Interest | Instalment |
|---|---|---|---|
| 1 | 4,655,020 | 788,548 | 5,443,568 |
| 2 | 4,716,198 | 727,370 | 5,443,568 |
| 3 | 4,778,181 | 665,387 | 5,443,568 |
| 4 | 4,840,978 | 602,590 | 5,443,568 |
| 5 | 4,904,600 | 538,968 | 5,443,568 |
| 6 | 4,969,059 | 474,509 | 5,443,568 |
| 7 | 5,034,365 | 409,203 | 5,443,568 |
| 8 | 5,100,529 | 343,039 | 5,443,568 |
| 9 | 5,167,562 | 276,006 | 5,443,568 |
| 10 | 5,235,477 | 208,091 | 5,443,568 |
| 11 | 5,304,284 | 139,284 | 5,443,568 |
| 12 | 5,293,752 | 69,573 | 5,363,325 |
| Total | 60,000,000 | 5,242,568 | 65,242,568 |
| Month | 1 | 1 |
|---|---|---|
| Principal | 4,655,020 | 4,655,020 |
| Interest | 788,548 | 788,548 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 2 | 2 |
| Principal | 4,716,198 | 4,716,198 |
| Interest | 727,370 | 727,370 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 3 | 3 |
| Principal | 4,778,181 | 4,778,181 |
| Interest | 665,387 | 665,387 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 4 | 4 |
| Principal | 4,840,978 | 4,840,978 |
| Interest | 602,590 | 602,590 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 5 | 5 |
| Principal | 4,904,600 | 4,904,600 |
| Interest | 538,968 | 538,968 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 6 | 6 |
| Principal | 4,969,059 | 4,969,059 |
| Interest | 474,509 | 474,509 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 7 | 7 |
| Principal | 5,034,365 | 5,034,365 |
| Interest | 409,203 | 409,203 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 8 | 8 |
| Principal | 5,100,529 | 5,100,529 |
| Interest | 343,039 | 343,039 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 9 | 9 |
| Principal | 5,167,562 | 5,167,562 |
| Interest | 276,006 | 276,006 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 10 | 10 |
| Principal | 5,235,477 | 5,235,477 |
| Interest | 208,091 | 208,091 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 11 | 11 |
| Principal | 5,304,284 | 5,304,284 |
| Interest | 139,284 | 139,284 |
| Instalment | 5,443,568 | 5,443,568 |
| Month | 12 | 12 |
| Principal | 5,293,752 | 5,293,752 |
| Interest | 69,573 | 69,573 |
| Instalment | 5,363,325 | 5,363,325 |
| Month | Total | Total |
| Principal | 60,000,000 | 60,000,000 |
| Interest | 5,242,568 | 5,242,568 |
| Instalment | 65,242,568 | 65,242,568 |
With reducing balance, the principal gradually increases and the interest decreases month by month. The monthly instalments would be VND5,443,568. So at a rate of 15.99%, the total interest you have to pay for this VND60 million unsecured loan with HSBC would be VND5,242,568 over 12 months.
As a result, you can see that the overall interest may be different, depending on the lender and which calculation is used. It goes to show you that when you get a loan, it’s not just the number on offer that matters. How the interest is calculated is also key. Some banks may use confusing terms, leading to you paying more over the life of the loan.
There are other interest calculations to consider, like fixed annuity (reducing balance and floating rate) or fixed principal and reducing rate.
The term of an unsecured loan impacts the amount of interest you’ll pay and the overall cost of the loan. The longer the loan term is, the less your monthly repayments will be. You can use our Personal Instalment Loan Calculator to look at how changing the interest rate, amount you want to borrow and repayment period may affect your monthly repayment amount.
The two most popular types of loans are unsecured and secured loans. We outline some of the key differences between these loans in this table:
| Terms | Unsecured loan | Secured loan |
|---|---|---|
| Requirements | Based on credit-worthiness, requires no collateral | Backed by collateral (real estate, vehicles, stocks, high-end collectibles and other valuables) |
| Disbursement time | 1 to 3 days | 5 to 10 days |
| Loan terms | Up to 5 years |
Up to 35 years |
| Borrowing limits | - Based on your income - Lending limits cap on monthly income |
- Based on your income and asset value - Possibility of bigger loan with high-value collateral and income sufficient for payment |
| Interest rates |
Usually higher than secured loan | Usually floating rate after promotion fixed rate, which is lower than unsecured rate |
| Terms | Requirements | Requirements |
|---|---|---|
| Unsecured loan | Based on credit-worthiness, requires no collateral | Based on credit-worthiness, requires no collateral |
| Secured loan | Backed by collateral (real estate, vehicles, stocks, high-end collectibles and other valuables) | Backed by collateral (real estate, vehicles, stocks, high-end collectibles and other valuables) |
| Terms | Disbursement time | Disbursement time |
| Unsecured loan | 1 to 3 days | 1 to 3 days |
| Secured loan | 5 to 10 days | 5 to 10 days |
| Terms | Loan terms | Loan terms |
| Unsecured loan |
Up to 5 years |
Up to 5 years |
| Secured loan |
Up to 35 years |
Up to 35 years |
| Terms | Borrowing limits | Borrowing limits |
| Unsecured loan |
- Based on your income - Lending limits cap on monthly income |
- Based on your income - Lending limits cap on monthly income |
| Secured loan |
- Based on your income and asset value - Possibility of bigger loan with high-value collateral and income sufficient for payment |
- Based on your income and asset value - Possibility of bigger loan with high-value collateral and income sufficient for payment |
| Terms |
Interest rates |
Interest rates |
| Unsecured loan | Usually higher than secured loan | Usually higher than secured loan |
| Secured loan | Usually floating rate after promotion fixed rate, which is lower than unsecured rate | Usually floating rate after promotion fixed rate, which is lower than unsecured rate |
A mortgage is a secured loan because your house will be used as collateral. See how much you could borrow for a mortgage with our Home loan borrowing calculator.
When you apply for an unsecured loan, you’ll need to have a good understanding of all the costs you need to meet. For example, if you're buying a car you should budget for insurance, registration fees and taxes.
Once you’ve figured out how much you need, look at how much you can afford to pay back each month. Taking the loan out over a longer period may lower your monthly repayments, but you may pay more in interest over the life of the loan.
The most suitable loan for you will depend on your personal circumstances and needs. Found the right one? Apply now for an HSBC unsecured loan or get in touch for more information.
Disclaimer: This article is informational only and intended to help you choose the most suitable type of loan for your needs.
1. Monthly payment is fixed during the tenor.
