Are you looking to apply for a large loan or just want lengthy terms to keep your repayments low? Consider applying for a personal loan with seven-year terms. You can keep your repayment amounts the same by opting for a fixed interest rate, or find one that best suit your needs with the other available loan types. Find out more about seven-year fixed loans in the guide below.
HSBC Personal Instalment Loan
- Borrow from S$1,000
- Fixed monthly repayments
- Redraw on your existing loan
HSBC Personal Instalment Loan
Apply today to get approved for up to S$200,000 over 7 years.
- Max. loan amount: Up to 8x fixed monthly income or up to S$200,000
- Loan tenure: Up to 7 years
- Approval duration: 1 minute approval in principle. "Next Day" approval available for loans up to S$100,000
- Effective Interest Rate: 7%
- Fees: S$88 processing fee, S$75 late payment fee, 2.5% early repayment fee, 2.5% + prevailing interest overdue interest fee
Personal loans you can fix for 7 years
How do seven-year fixed rate personal loans work?
These loans can be used to finance any personal purchase (the loan types are broken down into more detail below). When you apply for the loan, you need to agree to the interest rate stated in your loan contract. This rate will apply for the entire seven-year term.
Any loan establishment fees or monthly fees will be added to your repayments. At the end of the seven years, your debt will be repaid.
What you can finance with a fixed rate personal loan
Fixed rate loans are suitable for a range of purposes:
- New or used vehicles. This not only includes cars but also motorbikes, boats and even jet skis.
- Debt consolidation. If you have outstanding debts on a credit card or personal loan, you can consolidate and repay it over a longer term with a fixed rate.
- Home improvements. Add value to your home and have up to seven years to repay what you borrow.
- Holidays. If you’re planning on taking a trip, you can take out an unsecured loan to pay for your flights, hotel rooms or anything else you need.
How to compare fixed rate loans with seven-year terms
As you will be committed to this loan for seven years, it’s important to compare your options and find the right one. Here are some points to keep in mind:
- What interest rate applies? Compare similar loans to see how competitive the interest rate is.
- How much will you be charged in fees? Check for establishment fees, monthly fees, annual fees and any other fees you may be charged. If you want the option of paying back your loan early, check to see if this option is available and how much it will cost.
- Is the loan suitable for your purpose? If you want to buy a car, is the vehicle eligible? If you want to consolidate debt, can you bring all of your credit accounts over? Check all aspects of the loan before applying.
- How can you access and manage your account? The loan will be with you for seven years, so you want to ensure you can manage your account effectively. Check if there is a mobile app or online account tools.
Weigh up the benefits and drawbacks before applying
- Your repayments will be low because of the longer loan term
- You can easily budget because your repayments will remain the same throughout the seven years
- A range of different financing options are available
- As the loan term is longer, you end up paying more in interest
- You will probably be charged a fee for early or additional repayments
Questions you might still have