If you’ve been impacted by the coronavirus outbreak and are worried about making your HSBC Personal Loan repayments, you can request to defer your next 3 repayments.
This gives you the chance to pause repayments for 3 months, without it impacting your credit file.
Who can make a request to defer loan repayments?
You can submit a request if:
- you hold an HSBC Personal Loan
- you’ve been directly or indirectly impacted by coronavirus
- your ability to repay your loan has been temporarily affected – for example, you’ve lost your job or you’re having to work less hours
If this doesn’t currently apply to you, please don’t make a request. You’ll be able to make a request until 31 October 2020 if your circumstances change.
How will this work?
It depends on how you make your repayments.
Direct Debit: if you defer your next 3 monthly loan repayments, it means we won’t collect them when they’re due. We’ll do this automatically, so you don’t need to cancel these payments.
Standing order, or bill payment: if you defer your next 3 monthly loan repayments, you’ll need to cancel these payments yourself.
This won’t change the terms of your agreement with us, so we’ll still need to send you notices about the delayed repayments when we’re legally required to. You won’t need to do anything in response to these notices as long as you don’t miss any payments outside of this deferral.
No additional interest will accrue while you are on a payment deferral.
How do you request to defer your loan repayments?
To submit a request to defer your loan repayments, you can fill out our online form. Once we’ve processed your request, we’ll be in touch as soon as possible. This could take up to 7 working days as we’re anticipating a large number of requests, so please bear with us.
To fill out the form, you’ll need your:
- loan sort code
- loan account number
- next payment date to hand
You can find these details on your loan agreement, statements or the account summary screen in online banking.
Once your request has been processed and a decision has been made, we'll contact you by email or send you a letter with an update. We won’t be able to provide this decision over the phone.
This form is only for customers requesting to defer their loan repayments for the first time.
If your repayment deferral is coming to an end and you need further support, find out about your next steps. You don’t need to complete another loan deferral form.
If you’ve filled out an Income and expenditure form, we’ll be in touch to discuss your options.
What happens at the end of the repayment deferral?
We’ll get in contact before your repayment deferral ends to let you know your options. If you can, you’ll need to resume making your usual monthly repayments. You’ll be able to choose to:
- continue making them until you’ve repaid your loan. This means it will take you longer to repay the loan overall, but the total amount you repay won’t change as there won’t be any charges or additional interest.
- make the repayments you’ve deferred earlier, so your loan is still repaid over the remaining term of your agreement
If you’ll be unable to make your repayments, there are a number of other options available, which will depend on your personal circumstances.
Will this affect your credit rating?
If we accept your request to defer your repayments, we’ll record this arrangement to make sure it doesn’t impact your credit file.
If you haven’t arranged to defer your repayments and you miss one, your credit file could be impacted. If you’re not able to make your repayments, please complete and submit our online form as soon as possible.
If we need to speak with you, or if your circumstances mean your credit file may be impacted, we’ll contact you to discuss your options.
Although taking a repayment deferral will not negatively impact your credit file, lenders may take other information into account when making future lending decisions.
Which loan repayments will this apply to?
If your request is accepted, we’ll be in touch to confirm which repayments will be deferred. If you’re currently up to date with your repayments, this will usually be your next 3 regular monthly repayments. However, if your next repayment is due shortly, this may start the following month.
Why are payment holidays/deferrals (including extensions) only available until 31 October 2020?
This is in response to the guidance provided by the Financial Conduct Authority. After this date, there will still be support available which will be tailored to your individual circumstances, but these may impact your credit file.
What if you’ve already missed a repayment?
You can still request to defer your repayments using our online form. If we accept your request, your missed repayment will count as 1 of your 3 deferred repayments.
If you’ve missed more than 1 repayment, we’ll review your request and contact you either to confirm this has been accepted, or to discuss options that may be more suitable for you.
If you’ve already spoken to our Financial Guidance Team and an alternative solution, or payment arrangement has been set up, this will remain in place whilst we review your payment deferral request. If your request is accepted, we'll take care of this and update the solution, or payment arrangement, without you needing to contact us.