HSBC Balance Transfer Review: Should You Consider HSBC for Your Balance Transfer?
HSBC Balance Transfer Review: Should You Consider HSBC for Your Balance Transfer?
ValueChampion Rating 
Pros
- Good personal line of credit balance transfers of at least S$10,000 for 6 month interest free periods
Cons
- Not the cheapest for shorter or longer balance transfers
- Not the lowest minimum repayment requirements
HSBC offers a handful of balance transfer options; however, its 6-month interest-free personal line of credit transfer stands out as one of the more affordable options available in Singapore. However, HSBC's other offerings are not currently competitive to offers of other lenders.
| Summary of HSBC's Funds Transfer |
|---|
| Competitive 6-month interest-free PLOC balance transfers: 1.5% processing fee for loans of at least S$10,000 |
| Low Prevailing Interest Rates: 18.5% |
| Less competitive credit card balance transfers |
| Transfer amount: S$1,000 - 95% of credit limit |
| Minimum monthly repayment: 1% or S$50, whichever is higher |
Table of Contents
What Makes HSBC Stand Out to Borrowers
HSBC offers personal line of credit and credit card balance transfers with 6 and 12 months without interest. However, its 6-month interest-free personal line of credit balance transfer is its most competitive product. This balance transfer charges a processing fee of 1.5% for balance transfers of at least S$10,000, which is one of the lowest rates for 6-month interest-free transfers in Singapore. It also charges a lower prevailing interest rate for these loans, which can be helpful for borrowers that are unable to repay their debt within the interest-free period.
However, the rates that HSBC offers for its other balance transfers, including its credit card balance transfer, are much less competitive. For example, borrowers that would be able to repay their balance transfer in 3 months or less might find a 3-month interest-free balance transfer from other banks less expensive than HSBC's 6-month interest-free offering. Similarly, borrowers that are nervous about their ability to repay their balance transfer within 6 months should consider a balance transfer from other banks with 12 or 18 months without interest in order to avoid accruing interest after the 6-month period.
Summary of HSBC's Balance Transfer Costs
| Transfer Type | Duration | Interest Rate | Processing Fee | Effective Interest Rate | Prevailing Interest Rate |
|---|---|---|---|---|---|
| PLOC (> S$10,000) | 6 months | N/A | 1.50% | 3.26% | 18.5% |
| PLOC (< S$10,000) | 6 months | N/A | 2.50% | 5.47% | 18.5% |
| PLOC | 12 months | 4.88% | N/A | 4.88% | 18.5% |
| Credit Card | 6 months | 2.5% | S$88, waived for S$10,000 or more | 4.39% | 28% |
| Credit Card | 12 months | 4.88% | S$88, waived for S$10,000 or more | 6.77% | 28% |
Who Can Apply: Eligibility Criteria
- Processing Fee
- 2.5%
- Maximum Principal
- 6 times your monthly income or S$100,000
- Interest Free Period
- 6 months
HSBC does not provide detailed eligibility criteria on its website, however it does mention that individuals must be credit card customers to be eligible for the bank's credit card balance transfer.
Other Charges & Fees
In addition to its processing fees, balance transfer lenders tend to charge a few administrative fees. HSBC does not provide information online regarding its fees for personal line of credit loan balance transfers, however it charges a late payment fee of S$55 and an overlimit fee of S$40 for its credit card balance transfers.
How to Apply for HSBC's Funds Transfer
Applicants must submit either HSBC's balance transfer enrolment form or its personal line of credit balance transfer enrolment form in order to apply. These relatively short forms require personal and financial information.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.